Bankruptcy legislation is a complex system of legal norms designed to regulate the relations arising between the debtor and the creditor, while bankruptcy is the legal affirmation of the fact of the debtor's insolvency. The relations connected with bankruptcy are regulated by the Law «On Bankruptcy» adopted on 25 December 2006 and by other normative legal acts. The bankruptcy process is initiated both on one's own initiative — on the basis of a voluntary bankruptcy application — and at the creditor's demand — on the basis of a compulsory bankruptcy application.  The need for continuous reforms in the field of bankruptcy stems from Decision No. 1441-L adopted by the Government on 10 October 2019 «On approving the Strategy for the Judicial and Legal Reforms of the Republic of Armenia for 2019-2023 and the action plans deriving therefrom». In the fourteenth point of the third annex to the Decision, «Increasing the efficiency of the bankruptcy system» was singled out as a separate strategic goal, and within its framework — a number of the most important strategic actions and directions for the further reform and improvement of the field.