Insolvency proceedings policy – COVID-19 affected?

The author main objectives, researching the topic concerning the influence of the COVID-19 infection to the insolvency proceedings policy: 1. How the scope of suppression of consequences of the spread of COVID-19 infection affected insolvency proceedings policy? 2. What direct and indirect measures can be assumed in insolvency sphere? In the research there are used analytical and descriptive methods. Using these methods are analyzed normative acts and political planning documents. Comparative method is used to compare the scope of direct and indirect measures in whole economy sector and particular in insolvency sphere,measuring impact on social welfare. According to the decision of Government of the Republic of Latvia the state of emergency there promulgated second time (09 November 2020). In comparison to the first state of emergency (12 March 2020), scope of prohibitions and restrictions invented throughout the country changed, but at the same time strongly impacting the economy as well. Such sectors as catering, culture and sports events, beauty and recreation establishments, part of secondary schools and higher educational establishments there affected directly. Despite the situation in Spring time, legislator chooses not to introduce the so called repeated “moratorium” in sphere of insolvency. On other side such parts of insolvency process as legal protection proceedings there still in focus of the government and parliament agenda. Inventing second emergency situation, and successively scope of prohibitions and restrictions, their level and implementation directions remained more focused and precise. Also, financial aid and support for private sector entrepreneurs there invented at the same time, ensuring links to restrictions and prohibitions, granting the continuity of economy and economical activity of population, reducing the damaging social impacts.