SETTLEMENT AGREEMENT IN THE PROCEDURES OF PERSONAL INSOLVENCY

The author analyzes the legal regulation of bankruptcy of citizens, taking into account the novelty and lack of certainty in legal regulation. Currently, statistical data shows that a settlement agreement is not in demand among citizens. This is due to the fact that, despite the existence of settlement procedure, in a number of other bankruptcy procedures for individuals, such as sale of property, debt restructuring, the conclusion of a settlement agreement is similar to the degree of confusion with the debt restructuring procedure. In this regard, the author conducted a comparative analysis and identified the main differences. The pandemic of a new coronavirus infection has affected the economic and political situation, the demand for services has changed, and therefore their supply has decreased, many citizens were left without jobs or were forced to reduce their income, which caused an increase in cases of insolvency of citizens, an increase in the burden on arbitration courts. The possibility of concluding a settlement agreement is an important and necessary mechanism to avoid bankruptcy proceedings. The conclusion of a settlement makes it possible to restore the solvency of a citizen, to restore the trust of creditors. This procedure is beneficial not only to the debtor, who can reduce economic and time costs, but also to creditors, eliminating the need to pay for the services of a financial manager, to bear the costs of participation of representatives in court hearings. The main point for the debtor is to receive an installment plan for paying off the debt, which is carried out by reducing the amount of debt and (or) by forgiving part of the debt on the part of creditors who are entitled only to such satisfaction of their claims, which is provided for by the settlement agreement. The settlement agreement remains valid only if the provisions of the law that ensure the interests of creditors, the debtor, and the state are observed. The author proposes a number of changes that will help make the procedure for concluding a settlement agreement more efficient.

protection of the rights and interests of creditors and debtors, debt collection, statistics, improvement of legislation, status of an individual entrepreneur, Uniform State Register of Individual Entrepreneurs, restructuring plan, financial manager, arbitration court

Busygin A. A. Settlement agreement in the procedures of personal insolvency. Business. Education. Law, 2023, no. 1, pp. 216—220. DOI: 10.25683/VOLBI.2023.62.567.