Recovering financial sustainability of debtors: present-day legislative development trends

The purpose of the research is to study the problems rooted in the development of relations in the sphere of bankruptcy in the Russian Federation, connected with the inefficiency of procedures aimed at financial rehabilitation of business entities, as well as to identify the main directions for further changes in the legal regulation of this area. The methodological basis was based on the application of such research methods as logical and structural analysis, systemic-functional approach, formal legalistic method. The research resulted in the disclosure of substance, features and legal regulation of such an important mechanism of market relations as a bankruptcy. As part of the research, the authors present the evaluation of law enforcement practice based on the norms of the current legislation on insolvency. A particular result of its regulatory impact is cumulatively assessed. The key problems of the law enforcement practice that has been formed within the past 20 years, as concerns the sphere of insolvency of business entities, have been formulated. The further directions of changes in legal regulation with regard to the relations in the sphere of bankruptcy in the Russian Federation have been outlined. It was concluded that, in the current situation, a change of approaches to the current bankruptcy system in favour of extending the use of rehabilitation procedures can provide significant support to businesses facing a difficult financial situation. The novelty of the research lies in a comprehensive study of the problems connected with the inefficiency of rehabilitation procedures, and in the formulation of concrete proposals for improving the legal environment in the sphere of bankruptcy.