Good conscience of the debtor in the bankruptcy procedure: legal and moral and psychological dimension

Abstract

At the current stage, the issue of bankruptcy of legal entities has been thoroughly worked out, has clearly defined and justified legal and economic mechanisms, works effectively not only in the world, but also in Ukraine. However, the issue of bankruptcy of individuals remains unresolved. The main problem is the ethical and psychological aspect of the bankruptcy procedure of an individual. Here there is a conflict of interests between the protection of the rights and freedoms of an individual as a citizen and the protection of the rights and interests of creditors. The article examines the good faith of the debtor in the bankruptcy procedure, focusing on legal and moral and psychological dimensions. The bankruptcy procedure is a complex process that affects both the legal position of the debtor and his psychological state. The good faith of the debtor is defined as a key principle that ensures the fairness and efficiency of bankruptcy procedures. The legislative framework that regulates the good faith of the debtor in Ukraine is analyzed, in particular the requirements for the behavior of the debtor at various stages of bankruptcy. The legal consequences of unscrupulous behavior are considered, such as the possibility of bankruptcy rejection or the imposition of additional sanctions. The moral and psychological dimension of good faith includes ethical norms and principles that influence the debtor’s decisions and his interaction with creditors and other interested parties. The psychological pressure experienced by the debtor during the bankruptcy procedure can affect his ability to act in good faith, so it is important to take this aspect into account when evaluating his behavior. The article also explores the socio-psychological consequences of bankruptcy, such as stigmatization and loss of reputation, which can affect the debtor’s integrity. Proposals are made to improve legislation to ensure greater transparency and fairness in bankruptcy procedures, as well as recommendations to support debtors on a psychological level. The changes proposed by the authors of the article will contribute to increasing the level of good faith of debtors, ensuring a fair and humane approach to solving bankruptcy problems.