Abstract
The purpose of the research is to study the problems rooted in the development of relations in the sphere of bankruptcy in the Russian Federation, connected with the inefficiency of procedures aimed at financial rehabilitation of business entities, as well as to identify the main directions for further changes in the legal regulation of this area. The methodological basis was based on the application of such research methods as logical and structural analysis, systemic-functional approach, formal legalistic method. The research resulted in the disclosure of substance, features and legal regulation of such an important mechanism of market relations as a bankruptcy. As part of the research, the authors present the evaluation of law enforcement practice based on the norms of the current legislation on insolvency. A particular result of its regulatory impact is cumulatively assessed. The key problems of the law enforcement practice that has been formed within the past 20 years, as concerns the sphere of insolvency of business entities, have been formulated. The further directions of changes in legal regulation with regard to the relations in the sphere of bankruptcy in the Russian Federation have been outlined. It was concluded that, in the current situation, a change of approaches to the current bankruptcy system in favour of extending the use of rehabilitation procedures can provide significant support to businesses facing a difficult financial situation. The novelty of the research lies in a comprehensive study of the problems connected with the inefficiency of rehabilitation procedures, and in the formulation of concrete proposals for improving the legal environment in the sphere of bankruptcy.
Highlights
The ongoing recession in the Russian economy, caused by objective reasons and the impact of the introduction of measures aimed at countering the pandemic, has made it necessary to revise the approaches to rehabilitation procedures in relation to debtors facing a difficult financial situation
The purpose of the research is to explore the problems underlying the development of legal relations in the sphere of bankruptcy in the Russian Federation, those connected with the inefficiency of procedures aimed at financial rehabilitation of business entities, and identification of major directions for further change in the legal regulation of this area
It should be noted that the Russian legislation regulating the relations in the sphere of bankruptcy is quite young in comparison with the foreign insolvency institutes
Summary
The ongoing recession in the Russian economy, caused by objective reasons and the impact of the introduction of measures aimed at countering the pandemic, has made it necessary to revise the approaches to rehabilitation procedures in relation to debtors facing a difficult financial situation. The theoretical research of the problems connected with financial insolvency of business, carried out by the foreign scientific community, acquired momentum in the second half of the last century, when the United States proceeded to development of methods for predicting bankruptcy and recovering solvency of business entities. Quantitative methods were actively developed, both for the identification and assessment of bankruptcy risk of an enterprise and for selecting necessary rehabilitation measures to recover solvency. The most significant foreign contribution to the theoretical studies covering the said issues was made by such scholars as Altman [1], Fulmer [2], Beaver [3], Taffler [4], Klaas [5], as well as a number of other scientists
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