Opening of bankruptcy proceedings at the initiative of the creditor

In cases where a debtor in an obligation becomes unable to pay “on account” any more, the only way left to the creditor or creditors of such debtor to protect their financial interests is to open bankruptcy proceedings against such debtor. However, in practice, not everything is so simple, which makes it necessary to study this issue. The purpose of the article is to reveal relevant issues that arise during the opening of bankruptcy proceedings at the initiative of the creditor, to study the problems that arise in this area and to formulate proposals for improving Ukrainian bankruptcy legislation. The creditor’s appeal to the court with an application to open bankruptcy proceedings against his debtor is one of the manifestations of the right of the initiating creditor to judicial protection. It is emphasized that the possibility of the creditor to apply to the debt repayment mechanisms of his insolvent debtor through bankruptcy procedures is provided only for those creditors who have monetary claims against legal entities. If the debtor of the creditor is a natural person, then such a creditor is limited in the ability to protect his rights through bankruptcy procedures, and can use all the tools offered by the legislation in this area, only in the event that the debtor himself – a natural person shows a desire to initiate proceedings in an insolvency case against himself. It is proposed to provide in the legislation of Ukraine the right of a creditor to initiate bankruptcy proceedings against a debtor who is an individual entrepreneur. The conditions for opening bankruptcy proceedings at the creditor’s request have been studied. The presence of a legal dispute as a reason for refusing to open bankruptcy proceedings was analyzed, and judicial practice in this area was studied. The provisions of the bankruptcy legislation regarding the ability of the initiating creditor to submit a proposal for the nomination of an arbitration manager to perform the powers of a property manager or a restructuring manager before the day of the start of operation of the Unified Judicial Information and Telecommunication System in the application for opening proceedings in the bankruptcy case have been analyzed.