Prospects of the Extrajudicial Settlement by Enforcement Authorities of Bankruptcy Procedures

This article is concerned with prospects of the legal regulation of bankruptcy procedures. It has been established that the debtor's management intending to rehabilitate its enterprise can be prosecuted if it submits a bankruptcy petition in advance. To initiate a procedure for declaring bankruptcy, a debtor is obliged to prove the existing circumstances that testify their future inability to pay off monetary obligations to creditors and make mandatory payments to budget and off-budget funds. Successful rehabilitation and circumstances indicating the impossibility to fulfil monetary obligations in the future directly depend on the time left before the debtor's insolvency. The earlier the debtor's management foresees an impending bankruptcy, the greater are the chances that the company's solvency will be restored.