Institute of bankruptcy in the Russian Federation: establishment and ways of development of the legal provision

Objective: to study the issues of regulation of bankruptcy relations and to determine the ways of further development of the legal field in this sphere. Methods: historical method, logical and structural analysis, system-functional approach, formal-legal method. Results: the article considers formation of the bankruptcy institute in the Russian Federation. In addition, the modern state of legal support in this field is analyzed. The peculiarities of the Russian model of bankruptcy regulation are outlined. Further, the author emphasizes the current problems in the regulation of bankruptcy relations in the Russian Federation. In particular,the author notes that the procedures aimed at restoring the solvency of debtors are not in demand in practice. The study also emphasizes the problem of a relatively low percentage of satisfied creditors’ claims as a result of bankruptcy procedures. An assessment is given of the current project of changing the legal field in this area proposed by the legislator. The ways of further development of bankruptcy legislation are defined. Scientific novelty: consists in the complex nature of the study of bankruptcy relations. In particular, the research provides a new development of theoretical provisions, as well as practical recommendations to improve legal regulation and increase the effectiveness of the bankruptcy institute. It is established that today there is a smooth transition from the pro-debtor model of bankruptcy relations, which was previously dominating, to a more balanced mechanisms of insolvency regulation from the viewpoint of creditor and debtor interests. It is also argued that it is necessary to abandon the financial rehabilitation and external management procedures, which actually do not work in practice, and to replace them with a single rehabilitation procedure aimed at restoring the debtor’s solvency. Practical significance: a certain theoretical basis was formed, which is necessary both for researching the essence of the bankruptcy institute in the Russian Federation and for developing proposals to adjust regulatory policy in this area in the future.