Insolvency proceedings in the shadow of the COVID-19 pandemic

The author is set two main objectives, researching the topic concerning the influence of the COVID-19 PANDEMIC to the insolvency proceedings: 1. How the scope of prohibitions and restrictions impact the insolvency proceedings? 2. What legal and financial instruments were implemented on national and European level, influencing insolvency proceedings policy during the emergency period? In the research there are used analytical and descriptive methods. Using these methods are analyzed normative acts and political decisions. Comparative method is used to compare the scope of legal and financial instruments of national and European level. State, faced with the unprecedented situation of COVID-19 infection in so-called first wave of the infection in Spring 2020, acted rapidly and promulgated the state of emergency (12 March 2020). Government  invented unprecedented scope of prohibitions and restrictions throughout the country, caused large scale prohibitions and restrictions to critical sectors of the economy. Recognizing the dramatic impact of the invented measures, especially on the solvency of private sector entrepreneurs, legislator adopted the legal framework, introducing the so called “moratorium” in sphere of insolvency proceedings. Author initialized, that the scope of action plans of Latvia and the European Union – both there aimed to suppression of consequences of the spread of COVID-19 infection, but with different speed of introducing the concrete legal and financial instruments. Declaring the emergency situation,  scope of prohibitions and restrictions there invented on one hand, but promoting targeted financial and legal assistance on the other hand. The extent of the bargaining was balanced with the support mechanisms, also in the sphere of insolvency of the legal entities, highlighting a clear and predictable insolvency policy. Scope of legal and financial instruments, invented on both, national and European level, in majority of cases there of the same nature, but with the different perspective of implementation and availability.