LEGAL NATURE OF INSOLVENCY OF INDIVIDUAL ENTREPRENEURS

Abstract

The article examines the legal nature of insolvency of individual entrepreneurs. The author emphasizes that the study of the insolvency of individual entrepreneurs is important for understanding and managing financial risks, ensuring legal regulation, economic and social stability, as well as for developing effective strategies for supporting entrepreneurship and improving the regulatory framework that regulates the activities of individual entrepreneurs in as a whole It was determined that there are several main problems of insolvency of individual entrepreneurs in Ukraine, namely: insufficient efficiency of bankruptcy procedures; ineffective management of assets and liabilities; insufficient protection of the entrepreneur's rights; difficulties in the realization of assets; insufficient transparency and openness of the bankruptcy process. It is substantiated that the bankruptcy of individual entrepreneurs is a specific process that, taking into account its features, requires a special approach. It takes into account not only personal debts, but also obligations that have arisen and are related to the implementation of entrepreneurial activities. Bankruptcy for individual entrepreneurs provides for the liquidation of debts incurred in connection with the implementation of economic activities within the same procedure together with personal debts. This distinguishes the bankruptcy procedures of individual entrepreneurs from the bankruptcy of legal entities, where the process is limited only to economic obligations. Thus, an individual entrepreneur has the opportunity to restore not only his business reputation, but also his personal one. Based on the analysis of the legislation, it was concluded that under no circumstances does the creditor have the right to initiate this procedure against an individual entrepreneur. In addition, the legislator defined the same procedure for restoring the solvency of both a natural person and a natural person-entrepreneur. It was determined that the legislation on the insolvency of natural persons-entrepreneurs contains norms that need to be improved, including regarding persons who have the right to file a bankruptcy petition with the court. Taking into account the experience of European countries, it is proposed to grant the right to initiate the bankruptcy procedure of individual entrepreneurs not only to the debtor, but also to the creditors.