Not like all: application of insolvency law to the public law entities (evidence from Germany and Russia)

The authors analyze the civil-legal status of public-legal entities and the legal entities created by them, participating in civil circulation. They show that the state creates its own privileges by limiting its liability to the debts of such legal entities, which contradicts the constitutional principle of equality and equal protection of all forms of ownership, and also reduces the overall effectiveness of public administration, since non-application of bankruptcy legislation to legal entities allows inefficient enterprises to exist.