| Abstract [eng] |
Acts of law of the Republic of Lithuania provide different terms of insolvency of legal entity (e.g. in the effective acts of law such as Civil Code, the Law on Enterprise Bankruptcy, Law on Restructuring of Enterprises and other acts of law the terms insolvency and bankruptcy are provided as identical though in their essence they have different meanings and the proceedings are different, in some acts of law these terms are used as alternatives, etc.) therefore the acknowledgement of entity as insolvent is subject not to its physical status but to the assessment methodology chosen. Acts of law of the Republic of Lithuania does not provide any criteria of insolvency and methods of acknowledgement of insolvency of natural person not engaged in the commercial activities. Lately the opinions appear about legalization of insolvency or bankruptcy of natural persons and necessity for regulation thereof. In the absence of unified criteria of status of insolvency of legal entities, preparation of the decisions related to insolvency issues, assessment of real status of legal entity and forecasting of further activities become more complex. This Paper contains the main principles of insolvency regulation, provides aspects insolvency terms explanation, practical problems of insolvency approach, rights and responsibilities of persons that may (have) assess the status of insolvency and prepare and realize the related decisions based on the analyses of insolvency legal regulation in Lithuania and EU countries. At the end of the Paper the conclusions regarding problems of application of term of insolvency and methodology of assessment of insolvency in private and bankruptcy law are provided. |
