Regulation and problems of personal bankruptcy in Lithuania

Abstract

Personal insolvency is a topic that has gained much prominence in the context of the financial crisis. For the first time on the March 1, 2013 entry into force the Law on Personal bankruptcy in Lithuania and given the opportunity for individuals to go bankrupt. Therefore, this article aims to examine the personal bankruptcy regulation peculiarities and problems. This article analyses conducted on bankruptcy proceedings, personal bankruptcy Lithuania regulatory issues, identify the features of bankruptcy proceedings, the bonkruptcy effects of on individual, the creditor, and the state, a comparative analysis with other European countries. Analysis showed that providing on insolvent person to restore solvency would indirectly promote greater risk-taking problem which due to on increase commercial banks' losses and irresponsible borrower's subsidies.