International Experience in Understanding the Nature of Bankruptcy: Doctrinal Review

This paper presents a fragmented international doctrinal review of the understanding of the essence of the institution of bankruptcy. In accordance with established international doctrinal tradition, the terms “insolvency” and “bankruptcy” are used separately. In Russian legislation, they are used synonymously, as reflected in the title of the document – “On Insolvency (Bankruptcy)”. For the purposes of this doctrinal review, it seems methodologically correct to adhere to their conceptual distinction, which is emphasized in the conclusions. However, all of the listed approaches are used in the analysis. It is worth noting that the study covers various legal systems and approaches to understanding bankruptcy as a complex legal phenomenon. The relevance of the study is determined by the need to understand international experience in the context of the development of domestic insolvency legislation. The paper examines fundamental concepts of bankruptcy, its goals, functions, and place in the legal systems of various states. Based on the results of the study, a number of conclusions are drawn. In particular, it is proven that the institution of bankruptcy is a subject of discussion among numerous scholars from various legal systems. Their reasoning is based specifically on the regulation of this procedure in their country. Based on the review, a dual understanding of the institution of bankruptcy is observed. In particular, there is debate in the academic community regarding the differences between the terms “insolvency” and “bankruptcy”. International academic research notes a diversity of goals and functions for the institution of bankruptcy. It has been established that all specialists agree on the intersectoral and interdisciplinary nature of bankruptcy. Modern doctrine views bankruptcy not only as a purely legal mechanism, but also as an economic institution; a social phenomenon; an element of financial market architecture, etc. The paper also contains other conclusions based on the doctrinal review.