Fulfillment of Debtor’s Obligations by a Third Party in Bankruptcy Procedure: Advantages and Issues of Implementation

Abstract

In the current geopolitical conditions the task of protecting the rights of domestic entrepreneurs and citizens in a difficult financial situation, the preservation of their business and property comes to the fore. The article discusses one of the means of such protection, the implementation of which makes it possible to terminate insolvency proceedings, prevent the sale of the debtor’s property at auction, and save costs for conducting bankruptcy procedures. The purpose of the study is to increase the effectiveness of the mechanism for the fulfillment of creditors’ claims by a third party and eliminate the obstacles to its implementation that exist in practice. Research methods: dialectical, formal-logical, systematic, concrete-sociological, formal-legal. The author shows the advantages of fulfilling creditors’ claims by a third party for the debtor, its controlling persons and registered creditors. The main problems hindering the proper implementation of this mechanism, including those caused by illegal actions and inaction of arbitration managers, have been identified. Particular attention is paid to the widespread problem of the debtor’s property being put up for auction by the arbitration manager, despite the fact that a third party has already declared its intention to fulfill all creditors’ claims or has fulfilled them. The analysis of the reasons for preventing the arbitration manager from fulfilling the creditors’ claims by a third party is carried out. The practice of using interim measures as a means of protecting the debtor’s property from sale during the stages of such execution is considered. In order to solve the identified legal implementation problems, proposals have been made to adjust the procedure and timing of certain stages of the procedure for fulfilling creditors’ claims by a third party, the composition of duties and the remuneration system of arbitration managers. It is concluded that it is necessary to establish a legislative prohibition for the arbitration administrator to alienate the debtor’s property from the date of satisfaction by the arbitration court of the statement of intent to fulfill the debtor’s obligations. It is proposed to introduce the duty of the manager to suspend the bidding, as well as the conclusion of a contract for the sale of objects of the bankruptcy estate in the event of a third party depositing funds to the court deposit in order to satisfy creditors’ claims. Other proposals are given to solve problems arising in connection with the fulfillment of requirements in accordance with Articles 113, 125 of the Bankruptcy Law.