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A more generous consumer bankruptcy system provides greater insurance against financial risks but may also raise the cost of credit. We study this trade-off using the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), which increased the costs of filing for bankruptcy. We identify the effects of BAPCPA on borrowing costs using variation in the effects of the reform across credit scores. We find that a one-percentage-point reduction in bankruptcy filing risk decreased credit card interest rates by 70–90 basis points. Conversely, BAPCPA reduced the insurance value of bankruptcy, with uninsured hospitalizations 70 percent less likely to obtain bankruptcy relief after the reform. (JEL D18, G15, I13, K35)

In this challenging time, when the economic situation is unstable, many companies have to face such a phenomenon as bankruptcy. The procedure is new for our country and, therefore, its implementation is associated with a number of difficulties and issues. Bankruptcy sometimes turns out to be the only civilized way for a legal entity to solve the problem of accumulated debts. This procedure allows reorganizing or liquidating a business in compliance with the interests of the owner and creditors. Bankruptcy as a civil procedure has its own legal and social consequences, fi rst of all, when it comes to the workforce and threats to lay off the organization's staff . As a rule, bankruptcy affects the personnel of an organization or an enterprise and, in this case, it becomes extremely important to respect the labor rights of members of the labor collective at all levels. Dismissal of employees during the liquidation of an enterprise must be carried out strictly in accordance with the articles of the Labor Code of the Russian Federation. The contractual relationship is terminated in stages. Certain categories of workers are of great importance — people with disabilities, pregnant women, underage employees, mothers and fathers involved in raising children without a second parent, etc.

As a result of the research it was determined that, the main causes of bankruptcy in the current economic conditions is a violation of financial stability; decline in business activity; significant debt; low liquidity assets, etc.; socio-economic consequences of bankruptcy is the fall in GDP, the decline in industrial and other products; reducing the supply of goods and services in the market; decline in innovation and capital investment; a negative multiplier effect and others; the main types of bankruptcy inherent in national enterprises - a fictitious bankruptcy; deliberate bankruptcy; technical failure; real bankruptcy. In recent years, fictitious bankruptcy is most typical for production assets of corporations that serves as cost centers; actual bankruptcy - in small and medium business; it had been found, that the overall socio-economic consequences of bankruptcy in Ukraine are negative; it has been found that, the nature of the relationship between bankruptcy and indicators of socio-economic development is fairly close, which suggests that domestic enterprises are essential curative measures, measures of financial rehabilitation of enterprises; simplification of the tax regime for small and medium businesses. The model of communication process of bankruptcy and socio-economic indicators of Ukraine demonstrated a significant correlation between the present bankruptcy and tax revenues to the state budget. The impact of bankruptcy on the overall economic development of the country is a scientific and reasonable, which makes recommendations for further research.I have proved the important meaning of bankruptcy in the treatment of various scientists. There were presented internal and external causes of bankruptcy and its types. The next things were developed: the clarification of the external and internal in relation to the subject of business factors affecting its activities; the order of the enterprise is declared bankrupt; the main socio-economic consequences of the bankruptcy of enterprises in Ukraine.The research results can be used in the planning of government measures to prevent the bankruptcy of enterprises and developing strategies to improve the socio-economic development. In future we plan to continue the study and to determine the nature of the model applied to the process of bankruptcy and socio-economic indicators of Ukraine.

The bankruptcy of large agricultural holdings has a very significant impact on production volumes, agricultural incomes, government spending on agricultural development and its effectiveness, consumer spending on food. This is illustrated with the case of the agricultural holding "Eurodon" which became bankrupt in 2019. Its bankruptcy brought down the financial results of the agricultural sector, increased the losses of agricultural organizations of the country by almost three times. The creditors' claims on holding companies recognized by the arbitration court amounted to about 196 billion rubles taking into account the guarantees of agricultural holding organizations among themselves, without guarantees — 53 billion rubles. However, it was possible to sell the holding's assets after bankruptcy for only 6 billion rubles. The main losses were endured by the "VEB. RF" Development Corporation. According to experts, new multi-billion loans are required to resume the holding's operations at the volumes preceding its bankruptcy. The federal budget suffered huge losses due both to non-repayment of loans and to subsidies allocated to the holding for the period of its existence. Losses of the Rostov region are also significant: 6 thousand people lost their jobs (their salary amounted to 2.6 billion rubles a year). Also taxes to the budget, contributions to extrabudgetary funds, etc. ceased. Turkey prices on average increased by 14% in the country. The analysis of the bankruptcy case of "Eurodon" allowed to identify the risks of holdingization and develop a set of measures to reduce them.

This study combines theories of accumulating disadvantage and economic insecurity using the event of bankruptcy to investigate how certain adverse life events jointly affect inequality. I analyze National Longitudinal Survey of Youth data from 1985 through 2008 to highlight the complexities of financial hardship in the path to bankruptcy. By applying hybrid mixed effects models to parse out within‐ and between‐person variation, I show that, in the case of bankruptcy, financial hardship unfolds over a specific series of events, which can lead to the accumulation of disadvantage connected to changes in employment, marital, and health statuses. I find that bankruptcy results from people's recent experiences of illness and marital dissolution, but not always directly from employment disruption. The effects of job loss on bankruptcy become more apparent as these events accumulate over time and limit wealth creation. The timing of events and their relationship with net worth also influence when a person will file for bankruptcy. As a whole, my findings demonstrate how adverse events and financial hardship lead to bankruptcy through multiple pathways.

Recent developments in banking systems pose challenges for both banks and supervisory authorities. Bank control is carried out in a traditional way in the form of legal condition and management ratio. Most rules limit risk in a simple and direct way. Any credit institution is required to have an internal risk control system in place. The purpose of this system is to verify compliance with procedures within the rules in force, to verify compliance with the limits of risks, to ensure the quality of accounting and financial information. Prudential rules are intended to ensure minimum security while harmonizing competition rules. This is the set of rules gradually introduced by the bale agreement and retraced by the national supervisory authorities. In the context of this article we examined the management of prudential rules by the supervisory and regulatory authorities of the Chinese and Congolese banking sector; we highlighted these prudential rules by doing a comparative study compared to Chinese and Congolese commercial banks that went bankrupt due to non-compliance with prudential rules. We have demonstrated the causes of bankruptcy; the consequences of bankruptcy and we have proposed solutions to make bank risk management more efficient by scrupulously observing international and national legislation in China and Congo.

Purpose: The purpose of the article is to perform an economic and legal analysis of the problem of insolvency (bankruptcy) of business entities in conditions of the COVID-19 pandemic. Design/Methodology/Approach: Utilizing general scientific (systemic, dialectical and sociological) and specific scientific (normative-logical, comparative-legal, technical-legal, legal statistics) methods of researching economic and legal phenomena, the authors analyzed the concept and basic prerequisites for insolvency (bankruptcy) of entrepreneurial structures, the measures for the introduction of a moratorium on the bankruptcy of business entities undertaken by the Governments of Russia and Germany are considered and evaluated. Findings: As a result of the study, the authors concluded that during a pandemic, the risk factor for bankruptcy of business entities significantly increases and it is necessary to take measures to prevent the bankruptcy of business entities. The introduction of a moratorium on the bankruptcy of economic entities served as such measures in Russia and Germany. For these purposes, an appropriate regulatory and legal framework was created, providing for a ban on the introduction of bankruptcy procedures of certain economic entities. Practical Implications: The authors proposed introducing extra measures to prevent the bankruptcy of business entities in Russia in connection with the COVID-19 pandemic. In particular, it was proposed to borrow foreign experience and introduce a moratorium on the obligation to file an application by a debtor - a business entity to declare it a bankrupt, to fix a regulatory moratorium on filing applications to the arbitration court for the recognition of business entities as bankrupt by tax authorities. Originality/Value: State policy to prevent the bankruptcy of business entities in the sectors most affected by the COVID-19 restrictions significantly affects the number of bankruptcies of business entities due to the pandemic. In this regard, measures to prevent mass bankruptcy of entrepreneurs are an important factor in maintaining the stability of the state's economy. ; peer-reviewed