CAN THE LIBERAL CONCEPT OF PERSONAL BANKRUPTCY BE A GUIDE TO THE LEGAL REGULATION OF THE SAME IN THE REPUBLIC OF SERBIA AND THE REPUBLIC OF SRPSKA?
Abstract
Unemployment, weak consumer power, inability to regularly service credit obligations (problem loans), inability to settle other financial obligations, may be factors that lead a natural person – consumer to insolvency. An institute that provides the opportunity for a natural person - a consumer to be freed from debts without falling into insolvency at the cost of having his property subject to enforcement is an institute of personal bankruptcy. One of the modalities of personal bankruptcy that should be taken into consideration during future regulation is the liberal model of personal bankruptcy. The liberal model of personal bankruptcy is characterized by an open approach, which in the end leads to complete release - discharge from debt. Debt relief is an essential feature of this model, which is based on the idea of providing a chance for a new financial start (fresh start), which puts the interest of the debtor-consumer in the foreground, and the risk is transferred to the creditor. The legal systems of the Republic of Serbia and the Republic of Srpska do not recognize the institute of personal bankruptcy. The legal norming of the institution of personal bankruptcy is a challenge for the legislation of the Republic of Serbia and the Republic of Srpska, especially because it is not known to court and legal practice, while it is insufficiently considered at the theoretical legal level. For the stated reasons, the authors will point out the advantages and disadvantages of the liberal model, that is, why this model should be taken into consideration during the potential legal regulation of the institute of personal bankruptcy. In this way, the authors try to open the door to a legal discussion about the necessity regarding the legal regulation of the institute of personal bankruptcy in the Republic of Serbia and the Republic of Srpska.
References
Albanesi, S. Nosal, J. (2015). Personal Bankruptcy in the US: Effects of the 2005 Reform. Journal for Institutional Comparisons, Vol. 13, no. 4.
Bodul, D. (2014). About needs and Possibilities of Implementation of Consumer Bankruptcy Institute in Legal System of Bosnia and Herzegovina. Analss Law Faculty in Zenica, no. 14.
Bridge, C. (2013). Insolvency – a second chance?, Law in transition 2013. Law in Transition Journal.
Goodson J. M. (2021). Bankruptcy Law. Duke Law, rev. 01/2021. Преузето 31.07.2022. https://law.duke.edu/sites/default/files/lib/Bankruptcy-Law-a11y.pdf
DeFalaise A. M. (2006). Means Testing and Preventing Abuse by Consumer Debtors. USA Bulletins, Vol. 54 No. 4.
Dick, A. A. Lehnert, A. (2007). Personal Bankruptcy and Credit Market Competition. Federal Reserve Bank of New York Staff Reports, no. 272. Преузето 05.08.2022. https://www.econstor.eu/bitstream/10419/60538/1/522102395.pdf
Gerhard, М. (2009). Consumer Bankruptcy Regimes and Credit Default in the US and Europe a comparative Study. CEPS Working Document, No. 318/July 2009.
Gross, T. Kluender, R. Liu, F. Notowidigdo, J. M. Wang, J. (2020). The Economic Consequences of Bankruptcy Reform. Преузето 10.08.2022. https://users.nber.org/~notom/research/BAPCPA_Paper_nov2020.pdf
Hirsch, Ј. A. (1994). Inheritance and Bankruptcy: The Meaning of the „Fresh Start. Hastings Law Journal, Vol. 45, Issue 2.
Levis B. P. (2006). Personal Bankruptcy in Common Law Countries 7 Common Law Review.
Niemi-Kiesiläinen, J. Henrikson, А. S. (2005). Bureau of the European Committee on Legal Co-Operation (CDCJ-BU). Report on Legal Solutions to Debt Problems In Credit Societies. Преузето 12.08.2022. https://rm.coe.int/16807004bd.
Niemi-Kiesiläinen, J. (1999). Consumer Bankruptcy in Comparison: Do We Cure a Market Failure or a Social Problem?. Osgoode Hall Law Journal, Vol. 37, Nos. 1 & 2.
Радовић, В. (2006). Индивидуални стечај, Досије: Београд.
Ramsay, I. (2017). Personal Insolvency in the 21st Century A Comparative Analysis of the US and Europe. Portland.
Reifner, U. Kiesilainen, J. Huls, N. Springeneer, H. (2003). Consumer Overindebtedness and Consumer Law in the European Union. Преузето 13.08.2022. http://www.knl.lv/raksti_data/1147/parskats_ES_2003.pdf
Robe, M. Steiger, E. M. (2015). Insolvency and its Consequences: A Historical Perspective. Journal for Institutional Comparisons, Vol. 13, no. 4.
White, J. M. (2006). Abuse or Protection? Consumer Bankruptcy Reform under ‘BAPCPA’. Économie publique, no. 18-19.
Законски акти
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005(BAPCPA), ( L. 109-8, 119 Stat. 23, enacted April 20, 2005).
Bankruptcy Reform Act of 1978 (amendments to the Bankruptcy Code in 1984, 1986, 1994, and 2005) - Bankruptcy Code ( L. 95-598, 92 Stat. 2549, November 6, 1978).
United States Code. Преузето 10.07.2022. https://uscode.house.gov/
Federal Rules of Bankruptcy Procedure (Effective August 1, 1983, as amended to Dec. 1, 2021). Преузето 10.07.2022. https://www.law.cornell.edu/rules/frbp
Судска пракса
S. Supreme Court, Local Loan Co. v. Hunt, 292 U.S. 234 (1934) No. 783. Преузето 22.07.2022. https://supreme.justia.com/cases/federal/us/292/234/