Contestation of the Debtor’s Transactions in Bankruptcy on Special Grounds

As the title implies the work describes the procedure of contesting the debtor’s transactions in bankruptcy on special grounds. The procedure is relatively new. The purpose of this work is to do a comprehensive research into this Institute, including the comparison of the general and special grounds of recognizing these transactions invalid, establishing the scope of entities authorized to contest these transactions and the consequences of their invalidity, as well as developing recommendations on the improvement of the exiting legislation. The analysis conducted into the legislation and judicial practice permits advancing the theory of civil law and business law. It is reported that rules of Item 3, Article 61.1. of Bankruptcy Law provide for an extensive interpretation of the concept "transaction"; in conclusion, it is revealed that the exclusion of bankruptcy creditors from the persons authorized to submit an application challenging transaction, can lead to abuse by an external or bankruptcy trustee. A solution is offered to the problem of contradictory laws regulating various grounds of invalidity. It is proved the amount of losses caused by the transactions should be regarded as the main consequence of the arbitration manager’s invalidity. Key words: contesting transactions, external and bankruptcy trustee, bankruptcy creditors, invalidity grounds.