The Problem of Bankruptcy of Business Entities as a Consequence of the COVID-19 Pandemic

Abstract

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.