Legal issues of bankruptcy case commencement by the debtor

Introduction: the article is devoted to topical issues of bankruptcy case commencement by the debtor, namely the practice of application of Article 8 of the Federal Law "On Insolvency (Bankruptcy) ", and to the prospects of improving the bankruptcy prevention practice at early stages. Purpose: to analyze problematic issues of foreseeing insolvency by the debtor and of commencement of bankruptcy proceedings by the debtor, to identify possible solutions to this problem. Methods: the methodological framework of the research is based on a set of scientific methods, with a leading role of the dialectical one. Moreover, methods of comparative law analysis, synthesis and systematic method are used. Results: the study of the relevant judicial practice has shown that though Article 8 of the bankruptcy law stipulates that the debtor has the right to file for bankruptcy in its foreseeing, the bankruptcy procedure is not introduced in the period of bankruptcy anticipation by the debtor. Late start of bankruptcy proceedings ifies all existing rehabilitation potential of bankruptcy, as a result in more than 96 % of cases debtors enter liquidation procedure. Conclusions: the author concludes that the rule which obliges the debtor to prove the existence of circumstances testifying the occurrence of insolvency in the future shall be excluded since it hinders the debtors to commence bankruptcy proceedings in its prediction and on time. There is also no need to change Article 94 of the bankruptcy law. Participants of the legal entity shall have the right to approve the introduction of certain rehabilitation measures depending on whether the bankruptcy statement was filed by the debtor.