6.5 Bankruptcy

► Ex. I . Scan through the text. Restore the word order in the questions that follow and answer them.

Bankruptcy - the status of a debtor who has been declared by judicial process to be unable to pay his debts. Although some­times used indiscriminately to mean insolvency, the terms have distinct legal significance. Insolvency, as used in most legal systems, indicates the inability to meet debts. Bankruptcy, on the other hand, results from a legal adjudication that the debtor has filed a petition or that creditors have filed a petition against him. Bankruptcy laws were enacted to provide and govern an orderly and equitable liquidation of the estates of insolvent debtors. This purpose has remained an important aim of bank­ruptcy legislation since the Middle Ages. Because in the past bankruptcy was coupled with the loss of civil rights and imposi­tion of penalties upon fraudulent debtors, the designation bank­rupt came to be associated with dishonesty, casting a stigma on persons who were declared bankrupts. Eventually, however, bankruptcy legislation was extended to provide procedures for the adjustment of debts so as to avoid liquidation and for the rehabilitation of insolvent debtors. Modern bankruptcy laws include the salvage of an enterprise in financial difficulties. It has become the principal focus of bankruptcy legislation with particular concern for the maintenance of employment opportu­nities and the protection of members of the labour force.

Bankruptcy - банкротство; judicial process - судебная процедура; indiscriminately - неразборчиво; insolvency - неплатежеспособность; meet debts - оплачивать долги; adjudication in bankruptcy - объявление банкротом по суду; file a petition - подать петицию; enact - вводить закон; orderly - аккуратный; equitable - беспристрастный; estate - имущество; insolvent debtor – несостоятельный должник; couple - связывать; impose - налагать; fraudulent debtors - должники, дающие ложные сведения о своем имущественном положении; designation - называние; stigma - клеймо, репутация преступника; eventually - со временем; adjustment - улаживание; rehabilitation - восстановление в правах; salvage - спасение имущества; labour force - рабочая сила.

1) What by the term "bankruptcy" is meant? 2) What insol­vency indicate does? 3) What bankruptcy does result from? 4) What bankruptcy laws enacted to do were? 5) What was bankruptcy with in the past coupled? 6) What the designation bankrupt did come to be? 7) What bankruptcy legislation ex­tended to do was? 8) What modern bankruptcy laws do include? 9) What the particular concern of bankruptcy legislation is?

► Ex. II. Agree or disagree with the following statements.

1. Bankruptcy is the state of being unable to pay your debts.

2. Insolvency indicates the ability to meet debts. 3) Bankruptcy laws provide a disorderly liquidation of the estates of solvent debtors. 4) Bankruptcy laws govern a prejudicial liquidation of the estates of insolvent debtors. 5) Bankruptcy was linked with the loss of civil liberties. 6) Bankruptcy inflicted punishment upon fraudulent debtors. 7) Bankruptcy legislation may include settlement of debts. 8) The designation bankrupt was connected with unfairness. 9) Bankrupt is someone who has officially said that they cannot pay their debts. 10) Bankrupt is an insolvent person who has been adjudicated bankrupt by the court.

► Ex. III. Translate the following questions from Russian into English and answer them.

1) Банкрот не способен платить свои долги? 2) Неплатеже­способность - это финансовое положение фирмы, при ко­тором она не может своевременно выполнять свои финан­совые обязательства? 3) Неплатежеспособность необяза­тельно означает банкротство, не так ли? 4) Кредитор может подать заявление в суд на должника? 5) Законы о банкрот­стве ликвидируют имущество неплатежеспособных долж­ников? 6) Банкротство связано с потерей гражданских прав? 7) Как называются должники, дающие ложные све­дения о своем имущественном положении?

► Ex. IV. Complete the following statements. Choose one topic to speak about a) insolvency in comparison with bankruptcy; b) bankruptcy legislation in the past; c) modern bankruptcy laws. Retell the text “Bankruptcy”.

I) Bankruptcy is ... 2) Insolvency indicates ... 3) Bankruptcy results from ... 4) Bankruptcy laws were enacted ... 5) Bank­ruptcy was coupled with ... 6) The designation bankrupt came to be ... 7) Bankruptcy legislation was extended ... 8) Modern bankruptcy laws include ... with particular concern for ...