Issue 3 (17) 2012

Zhukova Kondratyeva THE DETAILS OF IMPROVING THE ORDER OF THE LEGAL REGULATION OF THE FINANCIAL RECOVERY AS A MEANS OF THE DEBTOR FINANCIAL STABILITY SECUREMENT

THE DETAILS OF IMPROVING THE ORDER OF THE LEGAL REGULATION OF THE FINANCIAL RECOVERY AS A MEANS OF THE DEBTOR FINANCIAL STABILITY SECUREMENT

T.M. Zhukova

Perm State National Research University

15, Bukirev st., Perm, 614990

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K.S. Kondratyeva

Perm State National Research University

15, Bukirev st., Perm, 614990

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In the article, the details are viewed of the legal regulation of the out-of-court recovery specified in the bankruptcy legislation. The norms of the current bankruptcy and recovery legislation are analyzed, as well as the issues associated with the irapplication. Besides, the ways are selected of improving the order of the legal regulation of there covery as a means for the debtor financial stability provision.

The measures against bankruptcy were known to the Russian pre-revolutionary law and to the bankrupt law of foreign countries. At present this topic acquired special significance because the number of cases associated with the insolvency (bankruptcy) continues to increase.

Being one of the most important means for providing the financial stability of the debtor, the out-of-court recovery is one of the ways to avoid the debtor’s bankruptcy expressed in the financial help to the debtor. The size of the financial help should be sufficient for liquidating the payables and mandatory payments and re-establishing of the debtor’s paying capacity.

The purpose of the out-of-court recovery is the restoration of the paying capacity, i.e. the absence of debts and mandatory payments obligations exceeding 3 months.

The current insolvency prevention legislation, like before, define the most general requirements for the preventative procedures aimed at the financial recovery of the insolvent debtors. This proves that it is necessary to adopt legislative acts dedicated to the issues of preventing the debtors’ bankruptcy.

Since the out-of-court recovery have sometimes an important strategic meaning for the debtor, such problems as the order of the out-of-court procedures, the reasons for starting them and the order of their termination, etc. All this proves the necessity to adopt a legislative act which could systematize and specificate the existing actions on preventing the debtors’ insolvency.

Keywords: out-of – courtrecovery; bankruptcylegislation; financialstability