Problems of legal regulation of bankruptcy during armed conflict

Abstract

The relevance of the study is due to the inconsistency of the national legislation of Ukraine on bankruptcy with the current conditions on the territory of the state, which are connected with the full-scale invasion of the Russian Federation. Martial law causes high risks of destruction of medium, small and large business enterprises, in particular in uncontrolled and temporarily occupied territories. Thus, the purpose of the study is to justify the need to improve the national legislation on bankruptcy, increase the efficiency of the mechanisms for the realization of rights, the fulfilment of obligations and the protection of the interests of economic entities in the conditions of military confrontation. The main methods used to write the work: historical, comparative, statistical, method of analysis, synthesis. The results of this work turned out to be the following: the legislation regulating legal relations regarding bankruptcy was investigated, it was found out which subjects of economic activity are at risk of bankruptcy, and the impact of the war on the state of legal regulation of the economic sphere was investigated. A conclusion was made regarding the main shortcomings of the national bankruptcy legislation. The question of the possibility of preserving the debtor’s further reputation and the proportional satisfaction of creditors’ rights by following the bankruptcy procedure, which was developed in accordance with modern conditions, was also investigated. The possibility of compensation for losses from the side of the aggressor country for those enterprises that suffered losses and destruction as a result of Russian military aggression is also indicated. The expediency of introducing a moratorium on bankruptcy and the main disadvantages of this type of restriction are discussed. Further directions for improving and increasing the level of effectiveness of the legally provided mechanisms for the implementation of the bankruptcy procedure in the conditions of war on the territory of Ukraine are proposed. The results of research work can be used as a theoretical basis for further legislative developments in the field of bankruptcy.