Part 2 of Article 28 of the Law of the Republic of Uzbekistan «On Bankruptcy» states that when considering the bankruptcy case of a debtor — an individual entrepreneur or an individual who has lost the status of an individual entrepreneur, the liquidation procedure is applied.

The application of a debtor — an individual entrepreneur or an individual who has lost the status of an individual entrepreneur for recognition as bankrupt may be accompanied by a debt repayment plan, a copy of which is sent to creditors and other persons participating in the bankruptcy case^[1].

In the absence of objections from creditors, the economic court may approve a plan for repayment of debts, which is the basis for the suspension of bankruptcy proceedings for a period not exceeding two months^[2]. The plan for paying off debts should include: the timing of its implementation^[3]; the size of the amounts left to the debtor or his family members on a monthly basis for consumption ^[4]; the size of the amounts that are supposed to be allocated monthly to pay off the claims of creditors^[5].

The Economic Court has the right, upon a reasoned petition of the persons participating in the bankruptcy case, to change the debt repayment plan^[6], including increasing or decreasing the period of its implementation, the size of the amounts monthly left to the debtor or his family members for consumption^[7].

If, as a result of the fulfillment by the debtor — an individual entrepreneur or an individual who has lost the status of an individual entrepreneur, the plan for repayment of debts, the creditors’ claims are paid in full, the bankruptcy proceedings shall be terminated.

            In relation to an individual entrepreneur or an individual who has lost the status of an individual entrepreneur, such bankruptcy procedures as supervision, judicial rehabilitation and external management are not applied^[8]. As noted by G.S. Nam, this fact is due to the fact that such bankruptcy procedures as judicial reorganization and external management are procedures of a restorative type, and the observation procedure is a preparatory period for judicial reorganization or external management. In her opinion, firstly, these procedures are long and laborious, and therefore there is no need to apply them in relation to individual entrepreneurs, whose financial and economic activities, in contrast to the activities of a legal entity, are less significant and large-scale. Secondly, these procedures are expensive, and, as a rule, reimbursement of expenses incurred in the course of their implementation from the funds and property of an individual entrepreneur would be problematic^[9].

            According to V.N. Tkachev, the exception to this rule are situations when an individual entrepreneur owns an enterprise, or a business, or a property complex. In civil science, an enterprise, or a business, or a property complex is considered as a set of property rights and obligations aimed at carrying out entrepreneurial activity^[10].

            An enterprise can be owned by both a legal entity and an individual, as property rights, since the enterprise is real estate^[11]. Unlike an individual entrepreneur, an individual who has lost the status of an individual entrepreneur does not have the right to carry out entrepreneurial activity^[12].

            Subscribing to the opinion of V.N. Tkachev, it should be noted that the heads of the dekhkan farm on the right of common ownership with other members of the dekhkan farm, without forming a legal entity, in any case owns a property complex, which includes a land plot, equipment, means of production, raw materials and so on^[13]. In this connection, the question of introducing supervision in the event of bankruptcy of the head of a dekhkan farm, without forming a legal entity, is very relevant^[14].

            Article 162 of the Law of the Republic of Uzbekistan «On Bankruptcy» establishes the features of the introduction of supervision, judicial reorganization and external management of agricultural enterprises. For agricultural enterprises, supervision, judicial reorganization and external management are introduced for a period until the end of the relevant period of agricultural work, taking into account the time required for the sale of commercial agricultural products^[15].  Considering that dekhkan farms carry out agricultural work, we consider it expedient to carry out judicial reorganization of dekhkan farms that operate without forming a legal entity, it is permissible and expedient^[16].

            Many scientists, in particular V.A. Khimichev, proves the need to use supervision, judicial reorganization, external management in relation to an individual entrepreneur, since these bankruptcy procedures ensure the rights of citizens as subjects of entrepreneurial activity^[17].

            S.M. Korneev argues that in relation to an individual entrepreneur, all procedures that apply to legal entities should be applied^[18].

            In our opinion, the activities of individual entrepreneurs are similar to those of commercial legal entities. Accordingly, rehabilitation procedures, such as supervision, judicial reorganization and external administration, are necessary in bankruptcy cases of individual entrepreneurs. The application of these procedures gives individual entrepreneurs a chance to avoid bankruptcy and, as a consequence, of the loss of the status of an individual entrepreneur.

[1] Ibratova, F. B., Kirillova, E. A., Smoleń, R., Bondarenko, N. G., Shebzuhova, T. A., & Vartumyan, A. A. (2017). Special features of modern legal systems: cases and collisions.

[2] Ибратова Ф. Б. Гражданско-правовые проблемы признания банкротами индивидуальных предпринимателей в Республике Узбекистан //Вопросы современной юриспруденции. – 2015. – №. 5-6 (47).

[3] Ibratova F., Esenbekova F. GENESIS AND EVOLUTION OF LEGISLATION ON CONCEPTIONAL PROCEDURES IN THE REPUBLIC OF UZBEKISTAN //Polish Journal of Science. – 2021. – №. 38-2. – С. 20-24.

[4] Ибратова Ф. Б. Банкротство ликвидируемого субъекта предпринимательства: проблемы и решения //Norwegian Journal of Development of the International Science. – 2021. – №. 58-2.

[5] Ibratova F. Problems of a settlement in bankruptcy cases in economic courts //Norwegian Journal of Development of the International Science. – 2019. – №. 28-3.

[6] Барышова, М. В., Белый, В. С., Глущенко, В. М., Ибратова, Ф. Б., Новиков, А. Н., & Пронькин, Н. Н. (2019). Социальное предпринимательство: научные исследования и практика.

[7] Ибратова, Ф. Б. (2019). ПРАВОВЫЕ ПРОБЛЕМЫ МИРОВОГО СОГЛАШЕНИЯ ПРИ РАССМОТРЕНИИ ДЕЛ О БАНКРОТСТВЕ В ЭКОНОМИЧЕСКИХ СУДАХ РЕСПУБЛИКИ УЗБЕКИСТАН. In ПЕРСПЕКТИВЫ РАЗВИТИЯ НАУКИ В СОВРЕМЕННОМ МИРЕ (pp. 163-170).

[8] Esenbekova, F. T., Okyulov, O., Sh, R., & Ibratova, F. B. (2021). Features of the approval of the world agreement by the economic court: practice and theory. International Journal of Professional Science, 5, 90-96.

[9] Комментарий к Закону Республики Узбекистан «О банкротстве» / Авт. Коллектив: М.К.Азимов и др. – Ташкент: 2007. – С.498.

[10] Ibratova F. Legal Problems of the Concepts Legality, Justification and Justice by Judicial Acts //Middle European Scientific Bulletin. – 2021. – Т. 16.

[11] Ibratova F. Bankrotlik to ‘g ‘risidagi ishlarda prokuror ishtiroki.

[12] Ibratova F. BANKRUPTCY OF A LIQUIDATED BUSINESS ENTITY: PROBLEMS AND SOLUTIONS //Norwegian Journal of development of the International Science. – 2021. – №. 2021. – С. 45.

[13] Дудник, Д. В., Ермолаев, К. Н., Ибратова, Ф., Миронов, Л. В., Окюлов, О., Опрышко, Е. Л., … & Шер, М. Л. (2021). Научные основы финансовой, кредитно-денежной и ценовой политики.

[14] Довлатова, Г. П., Ибратова, Ф. Б., Каращенко, В. В., Макеева, Е. И., Мирославская, М. Д., Пайкович, П. Р., & Харлампенков, Е. И. (2021). Инновации, тенденции и проблемы в области экономики, управления и бизнеса.

[15] Ibratova F. TERMS IN CIVIL LAw AND ThEIR APPLICATION IN LEGAL PROTECTION OF CITIZENS IN ThE REPUBLIC OF UZBEKISTAN.

[16] Okyulov O. et al. LEGAL ISSUES OF JUDICIAL ACTS IN CIVIL PROCEEDINGS UNDER THE LEGISLATION OF THE REPUBLIC OF UZBEKISTAN //Znanstvena Misel. – 2021. – №. 58. – С. 14-17.

[17] Химичев В.А. Осуществление и защита гражданских прав при несостоятельности (банкротстве) / В.А.Химичев. – М., 2006. – С.118-119.

[18] Гражданское право: В 4 Т. – Т.1: Учебние / Отв. Ред. Е.А.Суханов. – М., 2008. – С.179.