Contesting Transactions in the Context of Various Competitive Contesting Theories

Abstract

The article is devoted to the issues of contesting transactions in bankruptcy cases, theories of
competitive contesting, protection of bona fide participants in civil transactions from unreasonable
claims of invalidity of transactions they have made. The author examines the effectiveness of bankruptcy
procedures in general and consideration of applications for challenging transactions in particular.
There has been an increase in the overall performance of the procedures used in bankruptcy cases over the past decade. At the same time, the quality of analysis of transactions made by debtors on the eve of bankruptcy remains consistently low, which entails a relatively low percentage of satisfaction
of applications for invalidity of transactions considered in bankruptcy cases.

The problems of invalidity of transactions have been studied from the point of view of various
theories of competitive contestation. Taking into account the subjectivist tendencies in Russian law,
the author concludes, that tort and quazi-tort theories dominate in law enforcement practice. Practical recommendations are given on analyzing suspicious transactions conducted during bankruptcy
procedures in order to increase the effectiveness of competitive challenging. In preparing the article, the works of pre-revolutionary and modern Russian scientists, as well as the works of foreign authors specializing in bankruptcy issues, were used.