PRINCIPLES OF SEPARATE PROCEEDINGS IN BANKRUPTCY CASES: THEORETICAL FOUNDATIONS AND DIRECTIONS FOR IMPROVEMENT

Abstract

This article presents a systematic legal analysis of the principles governing separate proceedings within bankruptcy cases in Ukraine. Based on an examination of legal doctrine, the Code of Ukraine on Bankruptcy Procedures, and case law of the Supreme Court, the author proposes an original three-tier classification of relevant principles: (1) general legal and procedural principles (such as the rule of law, equality, adversarial process, and good faith); (2) sector-specific principles of bankruptcy law (including the concentration of disputes, collectivity, procedural economy, and rehabilitative focus); and (3) a special principle of autonomy and subordination, which reflects the dual nature of separate proceedings - autonomous in procedure but functionally subordinated to the goals of the primary bankruptcy case.

The research emphasizes that while general procedural principles continue to operate in bankruptcy proceedings, the specific nature and goals of insolvency law - fair and proportional satisfaction of creditors’ claims with minimal loss of value - require the application of unique legal approaches. Based on the case law of the Supreme Court of Ukraine, the article identifies both established principles and problematic issues hindering their effective implementation, including legislative gaps and inconsistency in interpretation.

A comparative analysis of EU, UK, and US legislation demonstrates that Ukraine is moving in line with international standards but still requires refinement to ensure greater procedural efficiency and legal certainty. In particular, the study highlights the need to regulate separate proceedings in greater detail within national legislation, to harmonize procedural rules, and to implement safeguards against procedural abuse. Practical recommendations include the introduction of mechanisms for early restructuring, enhanced creditor protection, and the adoption of digital solutions for asset sales.

The conclusions of this article may serve as a basis for legislative improvements and the development of coherent judicial practice in the field of bankruptcy, contributing to legal stability and economic resilience.