SOME ASPECTS OF THE INSTITUTE OF RESTORATION PAYING CAPABILITIES OF NATURAL PERSONS

Abstract

The article examines certain aspects of the institution of restoring the solvency of natural persons through the prism of normative regulation and judicial practice. Emphasis is placed on its importance as a tool with which it is possible to ensure a balance between the interests of the debtor and creditors in the case of physical debtors in a difficult financial situation. Despite the “pro-creditor bias” of the Code of Ukraine on Bankruptcy Procedures, it is emphasized that the courts adhere to the idea of social protection of individuals during the consideration of such cases, which is traced in the title of book 4 of the Code of Ukraine on Bankruptcy Procedures. The grounds for opening proceedings in the case of insolvency of an individual are disclosed and, taking into account the conclusions of the Supreme Court, it is stated that their list is not exhaustive. Special attention is paid to the principle of good faith behaviour of the debtor and its interpretation by judicial practice. Emphasis is placed on the different understanding of the concept of “family member” given in the Family Code of Ukraine and the Code of Ukraine on Bankruptcy Procedures and on the determining provision for such a conclusion contained in the decision of the Constitutional Court of Ukraine dated 03.06.1999 in case No. 5-рп/99. The property declaration and the debt restructuring plan are analyzed as documents that must be submitted by the debtor together with the application for the opening of insolvency proceedings from the standpoint of ensuring rational cooperation between the debtor and the creditor in solving the financial difficulties of an individual and preserving his financial stability. Separate conclusions were made regarding the presence of negative moments that may occur in the process of the debtor’s realization of the right to restore his own solvency. The principles of settling the insolvency of individuals and the important legal presumptions of this category of cases developed by court practice are summarized. The author’s conclusions and positions on the improvement of legislation in the specified sphere of the relations are provided.