ԵՐԱՇԽԱՎՈՐՈՒԹՅԱՆ ԻՐԱՎԱԿԱՆ ԿԱՐԳԱՎՈՐՈՒՄԸ ՊԱՐՏԱՊԱՆԻ ՍՆԱՆԿՈՒԹՅԱՆ ԳՈՐԾԸ ՊԱՐՏԱՎՈՐՈՒԹՅՈՒՆՆԵՐԻ ԿԱՏԱՐՈՒՄԻՑ ԱԶԱՏԵԼՈՎ ԱՎԱՐՏԵԼՈՒ ՄԱՍԻՆ ՎՃԻՌՆ ՕՐԻՆԱԿԱՆ ՈՒԺԻ ՄԵՋ ՄՏՆԵԼՈՒ ԴԵՊՔՈՒՄ / LEGAL REGULATION OF GUARANTEE IN CASE OF ENTRY INTO FORCE OF THE JUDICIAL DECISION ON CONCLUDING THE DEBTOR'S BANKRUPTCY CASE BY DISCHARGING THE OBLIGATIONS

<jats:p>Securing performance of obligations through various methods has been and remains a widespread and prevalent practice in Armenia. Recently, the number of individual bankruptcy cases has increased significantly which, depending on their outcome, give rise to numerous practical and legal issues. In this article, the author addresses a phenomenon frequently encountered in civil law relations about an individual borrower, the performance of whose obligations toward a bank is secured by a guarantee. Specifically, it addresses situations where a court renders a judgment terminating the bankruptcy proceedings concerning the borrower and discharging the borrower's obligations thereby raising the issue of whether upon the entry into force of such a judgment the underlying guarantee is consequently terminated. The article concludes that there is a legislative gap; the current regulatory framework does not explicitly clarify whether, in the aforementioned circumstances, the guarantee shall be deemed terminated, or whether banks should nevertheless retain the right to demand the performance of the principal obligation from the guarantor. The author contends that the guarantee obligation should not be terminated in the aforementioned scenario. It is evident that the existing legislative gap has resulted in contradictory practices giving rise to legal uncertainty.</jats:p>