The effect of mediation on bankruptcy proceedings
Mediation known worldwide as an institution for resolving disputes is widely used in many sectors, including the economic field. Current paper sheds light on the issues of introduction and development of mediation in bankruptcy procedure. The importance of the research of these issues is high because in case of successful implementation of mediation in the procedures on economic failure cases, a profound positive result can be obtained in restoring the solvency of specific debtors, and therefore, in the economy as a whole. Successful mediation, even in the windingup bankruptcy proceeding, will minimize the negative consequences for the debtor, creditors and other participants of the bankruptcy process. This article provides a general description of mediation, analyzes its difference from traditional dispute resolution methods. Particular attention is paid to analyzing the role of mediation in the bankruptcy process of the enterprises and organizations and possible directions on the use of mediation in order to increase the efficiency of the bankruptcy institutions. The authors have also investigated the role of the mediation institution in the bankruptcy procedure, pointing to the undeniable positive economic results, which mediation brings not only to the parties, but, as mentioned above, to the economy as a whole.
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