History and modernity of the bankruptcy institution

Purpose: Study of the historical stages of the emergence and development of the bankruptcy institute in Russia and abroad. Methodology: Historical-legal, comparative and formal legal methods were used. Results: The article highlights the main stages of the development of the bankruptcy institution: the first is a «tough» period, the time limits of which coincided with the time of the appearance of the first merchants and the emergence of market relations; the second historical stage, called «prudent», the time period of which fell in the middle of the XVI-XVIII centuries; the third stage is «humane» (XVIII-XIX). It was established that there is a close relationship and a logical sequence of these stages, explained by the gradual development and complexity of economic relations with simultaneous improvement in the legislative sphere. Also, during the study, the imperfection of Russian legislation was revealed: the law does not provide a mechanism for preventing the sale and repurposing of scientific and experimental complexes of insolvent organizations, and the bankruptcy institution itself at the moment is not a stable and effective mechanism aimed at improving the management and finance of companies. Novelty/originality/value: The article examines the process of the institution of bankruptcy, its transition from a tough period to a modern humane one. The authors, using comparative analysis, describe the features of the development of bankruptcy, characteristic of various periods and different countries. It was established that Russian bankruptcy legislation has an unresolved potential for problems that need further study, consideration and consolidation.