Impact of bankruptcy procedures for individuals on bankruptcy proceedings in relation to affiliated entities

Abstract

The article analyses the legal and practical problems that arise during the simultaneous bankruptcy procedures of legal entities and individuals controlling them. Particular attention is paid to issues related to the inclusion of a claim based on a judicial act on bringing to subsidiary liability in the register of claims of an individual’s creditors. The work analyses the aspect of uncertainty of the deadlines for submission of the relevant application. The problem of determining the priority of a claim based on a judicial act on bringing to subsidiary liability is also discussed. The problematic issues of access of a controlled person to the bankrupt’s documents before the court reviews the claim for inclusion of the controlling person in the register of claims of creditors are updated. Difficulties in challenging of the transactions concluded by a controlling person in the context of the competition of interests of the bankruptcy estate of the controlling and controlled persons are identified. Proposals are formulated to fill legal gaps and improve the efficiency of solving the problems considered.