Back to the Issue of the Signs of Personal Insolvency (Bankruptcy)

УДК 347.15/18, ББК 67.408.122

Abstract

The article covers the study of signs of personal insolvency (bankruptcy). In the course of the study the authors have concluded that currently there are only two principles (criteria) in the world that set out the signs of bankruptcy, when an individual (citizen) can be deemed unable to pay their debts (bankrupt), namely the principle of non-payment and the principle of insolvency. As it stands in 2024, there are two patterns in the Russian law for regulating signs of personal bankruptcy: for applications from debtors themselves and for applications from their creditors (authorized body). Within the framework of the first pattern both principles act dispositively and simultaneously, without mutual elimination, and the second pattern is characterized only by the presence of the principle of insolvency, but its disclosure occurs, inter alia, through one of the criteria of non-payment (through a sign of your debt exceeding your assets). The foresaid cannot but give rise to difficulties and a lack of a uniform approach in judicial arbitration practice. Based on the analysis of the norms of foreign legislation and special literature the authors show the erroneousness of this approach and propose to amend the current Law "On Insolvency (Bankruptcy"), excluding non-payment as a special case of insolvency for applications from creditors and the authorized body to deem a person insolvent (bankrupt).