AN AMICABLE AGREEMENT OR ANOTHER FORM OF DEBT RESTRUCTURING IN INSOLVENCY PROCEDURE FOR INDIVIDUALS IN LATVIA
Abstract
The goal of this article is to explore the features of using insolvency proceedings in Latvia and to elaborate on special proposals for modernizing the laws. In the legislation, there has been no prospect from a legal perspective to restructure an individual’s debts. Namely, individuals have no opportunity to use legal protection within the framework of the insolvency proceedings to reach an amicable agreement with creditors, or create another form of debt restructuring. Eliminating this gap in legislation is therefore necessary.
In this article, analytical, comparative, historical and deductive methods are used to explore the legal norms that regulate the insolvency proceedings for an individual. The aim is to identify the distinctive features of the proceedings; to analyze the problematic aspects of laws and develop proposals for modernizing the legislation of Latvia in this field. The novelty of this research pertains to it being the first attempt in Latvia to examine the question of legal regulation of insolvency proceedings in complexity, with a practical proposal to improve Latvian legal norms and avoid bankruptcy problems. The outcome of this study includes a proposal to supplement the Act on Insolvency with the Article “Amicable Agreement”, for deciding upon the state of insolvency. This relates to an agreement between the creditors and the debtor to fulfil obligations before an auction of the debtor’s property.References
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