Fizinių asmenų bankroto procesas

This book deals with the legal issues related to bankruptcy proceedings of natural persons. The problems of indebtedness of natural persons which lead to their insolvency require complex legal assessment. In Lithuania, the insolvency problems of natural persons were acknowledged on 10 May 2012 when the Law on Bankruptcy of Natural Persons (hereinafter – LBNP) was adopted which entered into force on 1 March 2013. The purpose of the LBNP was to regulate bankruptcy proceedings of a natural person, farmer, or other natural person pursuing individual activity and acting in good faith. Also, the LBNP aims to ensure that creditors’ claims are satisfied according to the procedure established by this law in order to strike a fair balance between the interests of the debtor and creditors. until the adoption of the LBNP, the concept of the insolvency of natural persons was not established in Lithuanian insolvency law and payment of debts was carried out only using the enforcement procedures established in the Code of Civil Procedure of the Republic of Lithuania. The lack of regulation of the bankruptcy proceedings of natural persons not only caused the problem of forum shopping when a debtor would seek to commence insolvency proceedings in other countries, but also failed to secure the interests of creditors. Moreover, the adoption of the LBNP provides certain mechanisms for the social protection of debtors and their family members and requires the protection of their right to their dignity and basic needs. This book defines the goals of bankruptcy proceedings of natural persons and provides solutions how to make these proceedings more effective for the debtor and creditors. Seeking these goals, various questions have arisen, such as what are the economic, social, and legal goals which justify the right to bankruptcy for natural persons? Is the purpose of this process only discharge from debts or, on the contrary, is it intended to ensure the greatest possible satisfaction of creditors’ claims? Is the purpose of this process to balance the interests of the debtor and creditors? Is personal bankruptcy aright or a privilege? Effective bankruptcy proceedings of natural persons can only be achieved if the interests of the debtor and creditors are reconciled as much as possible. Though this goal is also set in the bankruptcy proceedings of legal entities, the bankruptcy proceedings of natural persons are shaped by the social and economic peculiarities and sensitive issues related to the protection of the rights of individuals (right to work, property, private life). Insolvency of natural persons is also often not an individual problem, but it also causes negative consequences for the family members. Therefore, the basic needs of the debtor’s family members must also be ensured in the bankruptcy proceedings of natural persons.This work is divided into ten parts. The first chapter examines the insolvency of natural persons as a legal problem and explains why insolvency of natural persons is a legal problem which requires specific legal regulation and the general rules of the law on civil procedure and enforcement are not sufficient to address this problem effectively. It also analyses the reasons for the insolvency of natural persons and the negative social, economic and legal consequences that insolvency causes in the society. The second chapter explains the development of personal bankruptcy proceedings in the Republic of Lithuania. The third part analyzes the objectives of the bankruptcy process for natural persons. The main objectives of this process are fresh start, the protection of the debtor’s essential assets and dignity, the protection of creditors’ interests, and the guarantee of a simple and operational bankruptcy process. The fourth chapter deals with the participants in bankruptcy proceedings, their rights and duties. The fifth part analyses the procedure of filing for bankruptcy which is the initial stage of the bankruptcy process. The sixth chapter assesses the preparation, approval and execution of the solvency recovery plan. The seventh part deals with issues of administration of bankruptcy proceedings, including an analysis of the administration of the insolvency estate, the restriction of the debtor’s assets, and bankruptcy costs. The eighth chapter analyses the issues of satisfaction of creditors’ claims, creditors’ ranking, and claims which from wich the debtor is discharged after bankruptcy proceedings. The ninth part assesses the procedure for ending the bankruptcy proceedings. The tenth chapter analyses the cross-border issues of the bankruptcy proceedings of natural persons. The comparative method of analysis is used in this book. For example, the relevant provisions of the Restructuring and Insolvency Directives and the uNCITRAL Legislative Guide on Insolvency Law for Micro- and Small Enterprises, which also focuses on the insolvency problems of insolvent natural persons, are analyzed. After the adoption of the Restructuring and Insolvency Directive in the European union, certain issues of insolvency proceedings of natural persons (the duration of the process, discharge of debts and the consequences after the end of the insolvency proceedings) were harmonized at the European union level. Such legal regulation also shows the importance of the problem of the insolvency of natural persons and the need to find the most effective ways to solve it. Accordingly, the adoption of the directive raises questions regarding its transposition into the national law.