Analysis of basic bankruptcy proceedings (case study of Russia and developed countries)
Analysis of basic bankruptcy proceedings (case study of Russia and developed countries)

Summary/Abstract: The author examine the basic mechanisms of modern systems of bankruptcy regulations through using instruments and methods of modern institutionalism. The efficiency of voluntary agreements has been proved as a tool for solving crises situations which cause cost reduction. Voluntary agreements help maintain confidentiality and a shorter duration of reorganisation procedures. The article studies and describes characteristics of the contracting of economic agents in the framework of bankruptcy depending on two parameters: self-interest focus and available information, as well as defines its effect on differentiation of the outcome of crises. The authors have specified the trends in modern bankruptcy systems of business entities in the Russian Federation, France, Germany and the USA, as well as determined their influence on the choice of the priority mechanism for resolving the current crises situation. The effectiveness of bankruptcy institute functioning also depends on the type of bankruptcy regulatory system (either prodebtor or procreditor type). In the first case, there is a big risk of unjustified liquidations of insolvent businesses, in the second case, there can occur an undesirable situation when many businesses will be kept operating, though their dissolution is economically preferable.

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