Transformation of the Institution of Insolvency amid the COVID-19 Pandemic in Russia and Some European Countries

Abstract

The COVID-19 virus pandemic has become a major challenge to the modern economic paradigm in the world, leading to a sharp decline in supply and demand as a result of quarantines and changing consumer behavior due to the need for social distancing. Its predictable result will be a global economic downturn that will affect many enterprises and organizations in various industries. In these conditions, the need arises for a civilized settlement of the debts of insolvent entities to creditors. The paper examines legislative measures within the framework of the institution of bankruptcy taken in Russia and European countries (Germany, Italy, France) in order to overcome the economic crisis caused by the COVID-19 virus pandemic. A comparative legal analysis of the effectiveness of legal incentives adopted in states is carried out. It is concluded that most of the legal measures to counter the crisis in the considered countries have an identical focus and for maximum support of the debtor, diverse measures are required, which will include not only legal means, but also economic, financial and tax incentives.