It is no secret that bankruptcy and certain procedures need to be clarified, refined and improved. In most cases, the issue of providing the arbitration manager with work, payment for his work and reducing the time of consideration of certain stages in bankruptcy is acute.
It will be possible to reformat the pre-trial procedure of preparation and filing for bankruptcy (insolvency) to provide certain opportunities to ensure the work of arbitration trustees, guarantee the payment of remuneration and reduce the terms of certain procedures or even bring them closer to the deadlines set by the Code. The essence of such reformatting is to give arbitration trustees certain powers in the pre-trial process, ie at the stage of preparing documents for submission to the court.
“Monopoly of the arbitral trustee”
Along with the “lawyer’s monopoly”, an “arbitration trustee’s monopoly” can be established in insolvency proceedings, as lawyers represent the debtor or individual creditors without being arbitration trustees. In my opinion, it is necessary to establish at the legislative level the possibility of representing the participants in the bankruptcy case exclusively by arbitration trustees, as provided by criminal law. Bankruptcy plays a significant role in the state’s economy and its formation. The bankruptcy process has its own specifics and subtleties, and therefore in its process should be only professionals.
No one knows a bankruptcy case better than an arbitration trustee
To become an arbitration manager, a lawyer or economist must not only undergo training, internships and exams, but also acquire certain economic knowledge and skills. And such knowledge is used in the bankruptcy process, because the arbitral trustee is able to read the documents of the debtor or creditors and read exactly the information needed to restore solvency. If this process is not possible, then at least to ensure maximum satisfaction of creditors’ claims.
Go to the arbitration trustee
Arbitration trustees are self-employed. They have a self-regulatory organization and a certain status in the bankruptcy process with their own rules. So why can’t such a profession have a certain “monopoly”? If in case of violation of criminal law a person needs to go to a lawyer, then in case of hints of bankruptcy – to go to an arbitration trustee.
Increase of powers in the pre-trial process
The next aspect is to give arbitration trustees certain powers in the pre-trial process. For example, part of the powers of the arbitration trustee can be extended and transferred to the pre-trial process – the preparation and analysis of documents. Depending on the status of the party to the case (debtor or creditor), the arbitral trustee may have a package of guaranteed rights and powers.
Pros of cooperation of an individual with an arbitration trustee
On a contractual basis, the arbitral trustee may assist in the preparation of documents for the individual debtor. Such documents may be a declaration, a preliminary restructuring plan, preparation of a statement to the court, verification of financial and property status, etc. By signing such documents next to the debtor, the arbitral trustee certifies their correctness and verification. In the future, he may be appointed restructuring manager.
Quite often individuals do not understand the procedure for restoring the solvency of its economic structure and litigation, and therefore in the analysis and preparation of documents, the arbitral trustee may prevent unfounded recourse to the court with applications, thereby relieving the courts.
Pros of cooperation of the legal entity with the arbitration trustee
With regard to legal entities, the arbitration trustee may participate in the analysis of documents, directly prepare a pre-trial reorganization plan, prepare a statement to the court or statements of creditors. Again, the arbitration trustee signs such documents, which in itself signals to all participants that the documents have been prepared and verified by a specialist in the field of recovery.
Of course, such representation should be on a contractual basis with appropriate market remuneration for the arbitration trustee and be clearly regulated by law so that there is no abuse and breach of the guarantees of all participants.
What will it give us?
Expansion of the status, rights and guarantees of the arbitration trustees ensures their permanent work and appropriate payment outside the bankruptcy case; facilitates the procedure of restructuring or disposal of property in a timely manner, as part of the work will be performed at the pre-trial stage, which in turn reduces the burden on the court.
Therefore, we need to move forward, develop and become a truly independent community.