YEREVAN, March 25. /ARКА/. At its session on Wednesday, the National Assembly of Armenia adopted amendments to the RA Bankruptcy Code in the first reading, along with the accompanying legislation.
As stated by RA Deputy Justice Minister Tigran Dadunts, bankruptcy is regulated by the Law on Bankruptcy, adopted in 2006 and since then subject to several amendments, but still requires significant reform.
He noted that bankruptcy is often used as a tool for unfair debt write-offs, abuse, and liquidation of viable organizations, instead of rehabilitating them, selling their assets through various means, and ultimately liquidating them.
“According to statistics, 5,856 applications were filed with the bankruptcy court in 2024, of which 4,552 were for individuals.” In 2025, there were 4,730 such applications, of which 3,946 were personal bankruptcy petitions. These significant figures demonstrate that citizens readily take out loans, default on payments, and, after being declared bankrupt, easily get rid of their debts,” he noted.
Dadunts stated that to prevent the aforementioned abuses, it is proposed to raise the threshold for declaring bankruptcy from 2 million to 5 million drams.
“Furthermore, it is envisaged that when accepting a bankruptcy petition, the court will review the debtor’s financial situation, their transactions, and the alienation of property. Consequently, if there are any doubts, the bankruptcy petition may be rejected. If doubts arise during the bankruptcy proceedings, the court will have the option to simply refuse to discharge the individual from their debts,” Dadunts said.
