Supervision as the procedure applicable in the case of bankruptcy

Abstract

The article is devoted to the monitoring procedure used in the bankruptcy case. The procedures used in the insolvency (bankruptcy) case are examined and analyzed. Bankruptcy is the debtor's inability recognized by the court of arbitration or the debtor's inability to fully satisfy the creditors' claims for monetary obligations and (or) fulfill the obligation to pay mandatory payments. Insolvency a legal entity may be recognized insolvent (bankrupt), with the exception of a state enterprise, an institution, political party and a religious organization. The Institute of Bankruptcy is known to all countries with a market economy and is one of the main elements of the mechanism of legal regulation of market relations. In the process of carrying out economic activities, organizations - subjects of the market economy enter into numerous relations with each other, with state bodies, banks and other organizations. Federal Law No. 127-FZ of October 26, 2002 "On Insolvency (Bankruptcy)" provides for the following bankruptcy procedures: supervision, financial recovery, external management, bankruptcy proceedings, amicable settlement. The emphasis is on the observation procedure. The purposes of introduction of procedure of bankruptcy are allocated. Conclusions are made about the expediency of using this procedure, its advantages and disadvantages are highlighted.

Keywords: institute of bankruptcy, bankruptcy procedures, supervision, external administrator, debtor, creditor