Russian bankruptcy law in practice and its impact on the 1998 bankruptcy law

Abstract

This chapter examines the extent to which the novelties contained in the 1998 Bankruptcy Law were caused by shortcomings of the 1992 Bankruptcy Law. It provides a short survey of the 1998 Bankruptcy Law. When examining court cases under the 1992 Bankruptcy Law, it becomes evident that the 1992 Law had many gaps and inconsistencies that needed to be addressed. With regard to court decisions leading to practice-driven changes in the law, the following categories of judgments in bankruptcy cases are distinguished: broadening the grounds for bankruptcy; filling in gaps; clarifying obscure provisions; improving protection for creditors; and improving administrative procedures. It also includes increasing efficiency; sharpening definitions; adjusting to international standards; and including edicts and decrees in the law. In the case of bankruptcy law, the chapter concludes that the decisions of the Russian Higher Arbitrazh Court have proved to be rich source for the new Russian bankruptcy law. Keywords: 1998 bankruptcy law; arbitrazh court; international standards; Russian bankruptcy law