Abstract

The modern doctrine of the “fresh start” reflects the differences between the past paradigm of punishment of the insolvent person and the current focus on the economic effectiveness and activeness. Global practice in the field of insolvency shows that the “limited liability rule” is eminently effective in the economic and social perspective. The appending threat of abuse and misapplication of the system might be neutralized through the legal regulation of prevention and rehabilitation means, which are analyzed in this article. The aim of this research is to: 1) present a summary of the paradigm of bankruptcy of natural persons; 2) evaluate the categories of prevention and rehabilitation means set in the Lithuanian concept of the bankruptcy of natural persons; 3) identify the physical factors affecting the bankruptcy of natural persons; 4) provide a conceptual model of rehabilitation after bankruptcy and insolvency prevention measures have been implemented in the field of bankruptcy of natural persons