Fizinių asmenų bankroto procesas

BANKRUPTCY PROCEEDINGS OF NATURAL PERSONS This book deals with the legal issues related to bankruptcy proceedings of natural persons. The problems of indebtedness of natural persons which lead to their insolvency require complex legal assessment. In Lithuania, the insolvency problems of natural persons were acknowledged on 10 May 2012 when the Law on Bankruptcy of Natural Persons (hereinafter – LBNP) was adopted which entered into force on 1 March 2013. The purpose of the LBNP was to regulate bankruptcy proceedings of a natural person, farmer, or other natural person pursuing individual activity and acting in good faith. Also, the LBNP aims to ensure that creditors’ claims are satisfied according to the procedure established by this law in order to strike a fair balance between the interests of the debtor and creditors. Until the adoption of the LBNP, the concept of the insolvency of natural persons was not established in Lithuanian insolvency law and payment of debts was carried out only using the enforcement procedures established in the Code of Civil Procedure of the Republic of Lithuania. The lack of regulation of the bankruptcy proceedings of natural persons not only caused the problem of forum shopping when a debtor would seek to commence insolvency proceedings in other countries, but also failed to secure the interests of creditors. Moreover, the adoption of the LBNP provides certain mechanisms for the social protection of debtors and their family members and requires the protection of their right to their dignity and basic needs.