Normal business activities of the debtor in bankruptcy: criteria for recognition and the importance of the good faith of the counterparty

Legal scholars draw close attention to the issue of the content of normal business activities. It is still necessary to take into account not only the already systematized explanations of the higher courts on specific issues in every insolvency case, but also the dynamics of judicial practice and certain aspects of the debtor’s bankruptcy. A topical issue is whether transactions of a bankrupt debtor made during a period of suspicion and in arrears of payment can be classified as transactions concluded in the course of the debtor’s normal business activities. Purpose: to form a judgment on the conditions under which debtor`s transactions made during a period of suspicion and delay of performance may be assimilated by the court to its normal business activities. Methods: the author uses both general scientific methods (system method, empirical method) and special methods (comparative legal method, legal interpretation method). Results: the criteria for understanding transactions made during the period of suspicion and in delay of performance as the debtor’s normal business activities are defined; the importance of the good faith principle of the debtor’ counterparty is determined.