unlike the current procedure, the new law permits the bankruptcy debts for a relatively small amount. Bankruptcy through court it is possible for the debt of 500 thousand rubles. and costs about 100 thousand rubles (for the first half of the year, the courts issued decision on bankruptcy 42.7 thousand citizens).
under the new legislation, the application of the debtor in any MFC “My documents”. MFC will check the condition of the enforcement proceedings against the debtor, and then post a notice in the Unified Federal register of bankruptcy information (Medresurs).
given the simplicity of the procedure act contains a substantial barrier for its use. It lies in the fact that the bankruptcy precedes the completed execution proceedings, that is, the borrower must go through a trial on the claim of the Bank or the MFI, and the bailiffs should make a ruling about the impossibility of foreclosure, and that could take years, said the Chairman of the Board of Confederation of societies of consumers Dmitry Yanin. In addition, the bailiff may not terminate the enforcement proceedings if the debtor periodically have any income. Finally, banks and MFIs can pass on to debt collectors, rather than trying to recover it through the courts.
Considering criteria for admission, in the first months of action of the law in cases of recourse to this procedure will not be massive, says managing Director – head of enforcement and bankruptcy of Sberbank Yevgeny Akimov. This confirms the experience of entry into force of common rules on bankruptcy of citizens in October 2015, only a few debtors immediately initiated its own bankruptcy.
After filing an application in MFC accrual of interest, penalties, and fines, that is, the debt is no longer growing. The Bank or MFI whose loans/borrowings stated in the bankruptcy petition, can once again check the state registries for any of the debtor’s estate, except a single housing, or a car that you can recover and has the right to initiate General bankruptcy proceedings through the courts. If the lender, as the bailiffs did not find the assets of the debtor, within six months after registration of the case in Peresource citizen free from debt and to start life with a clean slate.
the international practice (for example, in New Zealand, which has a very similar Institute the No Asset Procedure) shows that lenders are quite often transferred to the normal procedure of simplified bankruptcy. “But in our version of the new procedure is available only to those for which lenders had already made a hopeless attempt of recovery in the enforcement proceedings, and failed to find property that could be seized. Therefore, we believe that the transition to the normal procedure the system will not jawlineeat,” – says Yevgeny Akimov.
it is Important to remember that you will be charged is the amount of debt that a citizen said in a statement. Thus there is a danger that he may not know exactly how many needs including interest and penalties. Therefore, before applying, you must apply for these information to the Bank or MFI, says lawyer, project expert of the Ministry of Finance on financial literacy Lyudmila Kirillova. Loans not listed in the bankruptcy petition, will remain in effect.
Instead of debt relief a citizen of partially restricted rights. During the six-month bankruptcy proceedings, he cannot take out new credit/loans and to sponsor. If a citizen for less than a year before the bankruptcy was an individual entrepreneur, he can not within five years engage in business and to occupy leadership positions (such as the consequences occur after the bankruptcy court). Repeat extrajudicial bankruptcy only after 10 years.
“We hope that the new bankruptcy will help the poorest citizens who are in difficult life situation, to get out of debt and back to normal life”, – said Deputy Minister of economic development Ilya Hummocks.
the impact of the law on creditors must also be generally positive. “It will be possible in a more simple order to write off bad debts, reduced the terms of those bankruptcy procedures that are known to not lead to compensation, but are forced to bear the organizational and material costs,” says Yevgeny Akimov.
with regard to the possibilities of abuse, the fears of creditors, according to him, traditional – not whether to use the simplified procedure notoriously unscrupulous debtors initially had no intention to fulfill their obligations. “But these opportunities are seen not very significant because, as mentioned above, the criteria for the admission of the debtor to the procedure is relatively hard,” says Akimov.
