RECOGNITION OF INVALID REALITY REGARDING SALE OF DEBTOR’S PROPERTY IN BANKRUPTCY PROCEDURE

Abstract

In bankruptcy proceedings, the debtor’s property is sold at auction, which allows the alienation of such property at the highest value. This not only helps to achieve the goal of repaying creditors’ claims in the maximum amount, but also influences changes in the approach of banking institutions to lending to businesses, in general, protects the interests of business participants and improve Ukraine’s investment attractiveness. In addition, the analysis of the practice of selling the debtor’s property in the bankruptcy procedure shows that the issue of invalidating the results of auctions is often raised. At the same time, the analysis of case law shows that the most ambiguous and problematic is the question of the grounds for invalidating the results of the sale of the debtor’s property in bankruptcy proceedings. Provisions on invalidation of transactions related to the sale of bankrupt property are contained in the Bankruptcy Code of Ukraine (Article 73), but they are not specific and raise a number of issues in their application in practice. Therefore, in conditions of legislative uncertainty and ambiguous case law, it is necessary to consider the main issues concerning the invalidation of the results of the sale of the debtor’s property in bankruptcy proceedings, identify common approaches to the grounds for invalidation of decisions and make proposals to improve the legal definition of these grounds. A study of the legal aspects of the sale of bankrupt property in terms of invalidation of the auction for the sale of property, identified a number of legislative gaps that do not specify the grounds for invalidation of the sale of property and need to be addressed at the legislative level. Proposals have been made to specify the grounds for invalidating the results of the sale of the debtor’s property in the bankruptcy procedure.