Institution of insolvency (bankruptcy) of individual entrepreneurs: concept, evolution, legal nature and prospects development

Abstract

Modern economic relations objectively need legal regulation of the procedure of termination of activities of those participants of turnover, who were unable to continue it due to deterioration of their property status. Due to the prevalence of participation of individual entrepreneurs in economic activity, they may also be among the insolvent subjects. These circumstances cause the need to study the specifics of insolvency (bankruptcy) of individual entrepreneurs, including in the context of forming the practice of application of the relevant legislation. Based on the analysis of the specifics of the legal status of an individual entrepreneur as a participant of property turnover, the purpose of legal regulation of insolvency (bankruptcy) of entrepreneurs, the conclusion is made about the possibility of singling out an independent institute of insolvency (bankruptcy) of entrepreneurs, institute of insolvency (bankruptcy) of an individual entrepreneur, it some principles are defined. When identifying the branch affiliation and place of this institute in the Russian legal system, it is defined as an arbitration-procedural legal institute. The peculiarities of the legal status of an individual entrepreneur also determine the necessity of fixing somewhat different approaches to the regulation of insolvency of these subjects compared to those that should be applied to ordinary citizens. The author concludes that it is necessary to fix as a general rule the obligation of the entrepreneur to repay the outstanding debt after the end of bankruptcy proceedings, as well as to establish the possibility to be released from this obligation only in a declaratory procedure.