LFMI specialists do not approve the Government proposed concept of bankruptcy of private individuals. In their examination study, they presented their arguments for why it is necessary to reject the idea of personal bankruptcy. Legitimization of the bankruptcy of natural persons would not only encourage providers of financial and other services to adapt to the new venture, but, more importantly, would affect people’s attitudes to personal commitments and would discourage their personal responsibility to live according to their means. On the one hand, the personal bankruptcy institute would help certain people better cope with their specific insolvency problems, but on the other hand, it would adversely affect the creditor as part of the debt would not be repaid. The examination also emphasized that if draft Law on Bankruptcy of Private Individuals were applied to liabilities that arose before the Law came into force, it would breach the principle of legal certainty which limits the right of the State to apply the provisions of the law retrospectively.
