LEGAL REGULATION OF PRIVATE ENTREPRENEURS BANKRUPTCY

Abstract

In this paper we analyze sources of private entrepreneurs bankruptcy, causes for initiation of proceedings, conditions in which arbitration court may initiate proceedings, types and content of proceedings. Particular examples of such proceedings used in private entrepreneurs bankruptcy regulation are given, such as: debt restructurisation, assets realization, amicable settlement, heritable assets insolvency. Inability to pay is taken for cause of bankruptcy recognition; fact of inability should be proven by applicant in court. We deduce that causes for initiation of proceedings for private entrepreneur and consumer are identical. Features of legal regulation of private entrepreneur bankruptcy are outlined on different stages: pleading to arbitration court, selling of assets during assets realization, legal consequences of bankruptcy in business. Debatable topics are investigated: notion of debtor in heritable mass insolvency procedure is given with conclusion about using of legal fiction in autorizing heir with rights and responsibilities of debtor. Established court practice of private entrepreneurs bankruptcy norm applications is analyzed.