Concept of subordination of creditors' claims in cases of bankruptcy of citizens

Abstract

The focus of the mechanisms of legal regulation of insolvency and bankruptcy on proportional and commensurate repayment of the debtor's creditors' claims, the interdependent relations between business entities that preceded the initiation of the debtor's bankruptcy case, as well as the intention of persons associated with the debtor to influence the course of the bankruptcy case raises the question of the fairness of the legal regulation of the equality of the debtor's creditors within one queue. Subordination of creditors' claims in bankruptcy cases of legal entities is considered as a measure of liability for actions that influenced the emergence of signs of insolvency or objective bankruptcy of the debtor, however, at present, the possibility and basis for extending the same procedural mechanism that could be applied to creditors in bankruptcy cases of an individual have not been disclosed, in connection with which this article attempts to analyze such a possibility and basis for leveling the negative property effect of independent creditors.

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