Bankruptcies of Ekaterinburg Merchants (Second Half of the 19th — Early 20th Centuries)

The commercial and industrial activities of the Ekaterinburg merchant class in the second half of the nineteenth century and early twentieth century were accompanied by both successes and failures, some of which were significant. In some instances, these failures resulted in bankruptcy. Bankruptcy, a significant aspect of entrepreneurial activity, was closely monitored by the state. The state implemented various legislative measures to identify deliberate bankruptcies and protect the rights of creditors. In accordance with bankruptcy legislation, administrations and bankruptcy departments were established. The administrations were tasked with two primary objectives: first, to settle the bankrupt’s debts with their creditors, and second, to revitalize their business and provide them with the opportunity to resume their entrepreneurial activities. The main task of the bankruptcy departments was to protect the interests of creditors. To this end, all movable and immovable property of the insolvent debtor was sold, and the proceeds were used to pay the bankrupt’s debts. This article identifies the main causes of bankruptcy among Ekaterinburg merchants, briefly describes the procedure for declaring entrepreneurs insolvent debtors, the mechanism for establishing administrations and bankruptcy proceedings, and their practical activities. It is established that in the second half of the nineteenth century and early twentieth century, 99 Ekaterinburg merchants were declared insolvent debtors, and six administrations and 93 bankruptcy administrations were established in their cases at the request of creditors and judicial authorities. In most cases, the administrations and bankruptcy departments were established on the initiative of the courts and creditors.