Legal Aspects of Insolvency of Natural Persons in the Baltic States
The article is devoted to the analysis of the main features of the model for bankruptcy of a natural person in Lithuania, in comparison with the legal regulation in Latvia and Estonia. Particular emphasis is placed on the principle of good faith and the need to balance the interests of the debtor and creditors.
Lithuania was the last of the Baltic States to introduce a legal mechanism to deal with insolvency of a natural person to its legal system – the Law on Personal Bankruptcy of the Republic of Lithuania came into force on 1 March 2013. Therefore, the authors attempt to assess whether initial judicial practice corresponds to the intentions of the legislator and, by using comparative methods, propose some solutions for more effective functioning of the legal institution of personal bankruptcy.