Problems of Legal Support for Small and Medium-Sized Businesses in Debt Restructuring in Bankruptcy Conditions

Abstract

The article discusses the possibilities of small and medium-sized businesses in obtaining support when initiating bankruptcy proceedings, the conditions for approving restructuring as a measure used in bankruptcy cases. The study analyzed the statistics of decisions of arbitration and appeal courts in order to identify trends in the number of bankruptcies, measures taken in bankruptcy cases of small and medium-sized businesses and problems arising during bankruptcy proceedings in relation to the economic entities in question. On the basis of other studies, comments on laws and scientific papers, the problems of legal coverage of the process of bankruptcy of enterprises are identified, recommendations and methods are proposed with the aim of improving legislation in the field of legal support for small and medium-sized enterprises in the restructuring of debts in bankruptcy conditions. The key factor influencing the adoption of decisions in cases of approval of measures applicable in bankruptcy cases is the result of an analysis of the debtor's financial condition. The main problems in debt restructuring in the context of bankruptcy of small and medium-sized businesses are supposed to be the problem of debtors' mistrust of banks and external managers, incompetence of debtors in assessing their financial condition, providing inaccurate information and making mistakes at the stage of preparing documentation.