INSOLVENCY OF INDIVIDUALS IN EUROPEAN LEGISLATION – GREAT BRITAIN
INSOLVENCY OF INDIVIDUALS IN EUROPEAN LEGISLATION – GREAT BRITAIN

Summary/Abstract: Insolvency of individuals is a constant and major concern of most economic developed countries . US law allows individuals (consumers) to declare „bankruptcy” and to put their property under the control of a federal court order to get rid of the debt. The procedure is provided by Chapter VII of the US Commercial Code.Debtors indebted from countries such as Ireland and even Germany or Austrich - where procedures are more difficultt - come to England to declare personal bankruptcy. A personal bankruptcy in Ireland lasts for 12 years, and in Germany six years, during which the debtor’s rights are few and the law gives the creditor all the levers to extract as much money from the debtor as he can. Germans turn to French law, but especially to English law for a quickly and easily bankruptcy procedure.Once the insolvency code was declared unconstitutional last autumn, a new law of insolvency was approved, Law 85/20014, regarding insolvency and the procedures for preventing insolvency, which was published in the Official Gazette, Part I, no. 466 on 25th June 2014 and came into force on 28th June 2014.The legislative changes, brought by the new Law 85/2014, legally shape a part of the solutions that can be found in the procedure of the old Law 85/2006 of doctrine and practice.A further forgotten aspect of the new regulation is that of personal bankruptcy. Law 85/2014 applies to professionals, such as former commercial companies and current companies, to which the authorized natural persons can be added. However, Law 85/2014 applies neither to a person who practices a liberal profession nor to a person for whom special dispositions regarding insolvency are mentioned. The aim of this paper is an analysis of the legal situation of individual insolvency matters, through the provision of United Kingdom law . The reason I have chosen English law as a subject of interest is that the UK has one of the most elaborate procedures regarding personal bankruptcy institution. An additional argument in choosing the theme would be the alternative offered by English law with the I.V.A institution.

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