Insolvency Law Adaptation to the Covid-19 New Challenges: the Process of Destigmatisation and the Focus on the Rehabilitation of Business

Vyatka State University, Kirov, Russia

^* Corresponding author: usr22709@vyatsu.ru

Abstract

The institution of insolvency (bankruptcy) occupies a special place in the state institutions system to support business entities in the recovery process from the crisis, given the selection mechanisms and rehabilitation opportunities inherent in it. Bankruptcy on the global economy scale serves as one of the anti-crisis regulation tools to improve financial and economic stability. The Covid-19 pandemic has actualised the ensuring the bankruptcy law institutional capacity problem by maximising its anti-crisis potential. Given its spread scale, the insolvency law adaptation to the Covid-19 new challenges is a challenge faced by all legal systems without exception. The findings of this study reveal that fragmented and uncoordinated national responses have common trends caused by the unity goal of minimising economically and financially destructive effects of the pandemic. This study objective was to identify the most effective strategy for the bankruptcy institute modernisation, which solution is based on the elements comparative analysis and convergence methods. In conclusion, the bankruptcy institute development basic tendencies and patterns have been revealed. Their analysis has allowed designating the legislation perfection most effective and perspective strategies in this sphere, which are determined by the course to aim at its anti-crisis potential development.