Procedures applied in bankruptcy of an individual in 2021

Since October 2015, in the Russian Federation, an individual has the opportunity to declare himself bankrupt. According to Article 25 of the Civil Code of the Russian Federation, as well as Chapter 10 of the Federal Law “On Insolvency (Bankruptcy)”, bankruptcy cases of individuals can be considered in cases where they cannot pay off their debts.

However, a court decision to declare an individual bankrupt means not only getting rid of debts and loan payments, but also a temporary ban on leaving the country, the sale of all property of the bankrupt, a ban on receiving credit funds and conducting business activities.

How to file a bankruptcy petition for an individual

In order for the court to check whether a claim for bankruptcy of an individual is justified, it must include the following data:

that there is a debt to creditors and its size;
the estimated value of the debtor's property. If its value is higher than the amount of debts, the court may conclude that declaring bankruptcy is premature;
size and availability of income. If the debtor has income that can cover the debt for three years, the court will decide to restructure the debts;
if there is no income, information will be needed that the debtor tried to find a job;
presence of children, dependents and marital status;
information about transactions that have been completed over the past three years. If they show signs of opacity, transactions may be challenged.

The inclusion of this data by an individual in the bankruptcy application will give the court the opportunity to decide what bankruptcy procedure will be introduced.

The application also indicates the address and name of the SRO, whose representative will become the financial manager. In such a case, he is an obligatory figure.

Note!
Before nominating an SRO, make sure that it represents the manager in your region: if his candidacy is not approved due to the SRO’s refusal to work on the case or heavy workload, the case may be terminated.

Pros and cons of obtaining bankrupt status

When deciding to file an application to begin bankruptcy proceedings, it is important to consider all the advantages of such a procedure and possible risks. It is necessary to carefully consider all the consequences that will occur after the process is completed and the person is declared bankrupt. Therefore, it is important to consider the possible pros and cons in order to more consciously resolve this issue. There are many more recognized disadvantages as a result of the trial and stages of bankruptcy of an individual:

according to the bankruptcy law, a repeated procedure can be launched again only after 5 years;
after the proceedings are completed, the bankrupt will not be able to hold leadership positions for another three years;
for settlements with creditors, debt restructuring and property sales will be launched in order to obtain funds to be able to pay off loan obligations and interest;
there are restrictions on which debts can be entered and which need to be repaid - first of all, this applies to alimony, wages, financial management, the list also applies to all obligatory payments (current);
the court may declare the citizen’s recent actions illegal and revoke all contracts drawn up a year before the start of proceedings;
if fraudulent activities are detected, if such a fact is established, the debtor will be accused of deliberate bankruptcy.

Where to file a claim for bankruptcy of an individual

Which court hears personal bankruptcy? Arbitration, at the place of permanent registration. There you will have to submit an application with a list of documents, as well as pay a state fee. An amount of twenty-five thousand rubles is deposited with the court, intended to pay for the services of the manager.

Note!
Banks and microfinance organizations will be required to provide data on current loan debts.

Lenders should send official requests requesting the submission of necessary documents and certificates. Some documents can be ordered via the Internet - this will reduce the time required for collecting documents.

A bankruptcy claim for an individual, a sample of which can be downloaded here, can be filed in several ways:

via Russian Post;
personally through the office in the Arbitration Court;
in electronic form, using the special service “My Arbitrator”, for which you need to register on the State Services website.

Note!
When submitting an application through the office, it is recommended to take a second copy, on which you will indicate the assigned number and put a mark on receipt.

Main stages of the procedure: step-by-step instructions

The personal bankruptcy procedure is divided into three main stages - consideration of the case, debt restructuring and sale of property with subsequent payments to creditors. A detailed step-by-step action plan includes:

collecting documents about what debts the debtor has, preparing applications, agreements with creditors and other papers, information for submission to the court;

payment of the state duty - the issued receipt for payment of 30 rubles in a single copy is attached to the documents;
selection of a financial manager to indicate SRO - you can select a manager from family members;
filing documents with the arbitration court at the debtor’s place of residence;
the first meeting necessary to review documents, determine whether there is a likelihood of deliberate bankruptcy - account statements, contracts and other papers are reviewed, after which the court, as the case progresses, will provide an official response on the closure or continuation of the case;
at the next stage, the process diagram is divided - one of two procedures can be assigned;
if at the stage of restructuring the debtor and his creditors were able to sort out the situation, the citizen paid off the debts, then the process is considered completed and ends in a short time;
when the problem cannot be resolved, bankruptcy proceedings begin, during which the property included in the list compiled by the manager is sold, and the proceeds cover the debts;
After all stages have been completed and a report has been submitted to the court, the process is completed and the person is declared bankrupt.

At any stage of the insolvency scheme, both parties can complete the process by entering into a settlement agreement. In this case, the process will be completed within a few days with the satisfaction of the desires of both parties.

Time limits for considering a bankruptcy claim

Within five working days, the court decides the fate of the submitted application.

The application is accepted for processing and the date of the first court hearing is set.

If the application is accepted for processing, it will be considered within a period of fifteen days to three months. If the application is found to be justified, debt restructuring will be introduced. Provided that by the time the application is considered, the debtor has no or minimal income, the court, taking the citizen’s petition as a basis, may not begin debt restructuring, immediately declaring him bankrupt. Then the property is sold to cover debts.

Stage of sale of the debtor's property

All stages, procedures and terms of bankruptcy of an individual are reduced to the final point - the sale of acquired property, by selling which, the citizen can return all borrowed funds. After real estate, securities, jewelry and other goods are sold, the bankruptcy manager will transfer the proceeds to creditors in order of priority. All remaining unpaid debts will be written off, and the citizen will be officially declared financially insolvent.

After deciding to begin the procedure for recognizing financial insolvency, it is necessary to carefully study all the stages of bankruptcy of an individual in order to actually understand how the proceedings are going. It is important to understand that carrying out such a procedure is a responsible step that should be started as a last resort.

The application is left without action to eliminate deficiencies

This can happen in several cases:

The complete set of documents required by law has not been collected;
A receipt for payment of the state fee of 300 rubles was not provided;
The amount of twenty-five thousand rubles has not been deposited with the court.

Since 2015, provided that the amount of the debt exceeds five hundred thousand rubles, the application is allowed to be processed even if some documents are missing. They may be provided later.

Video on the topic. Soloviev: law on bankruptcy of individuals

Expert opinion

Kuzmin Ivan Timofeevich

Legal consultant with 6 years of experience. Specializes in the field of civil law. Member of the Bar Association.

( 6 ratings, average: 5.00 out of 5)

Hello, dear readers of the business magazine “RichPro.ru”! Today we will talk about how to declare bankruptcy for an individual and individual entrepreneur (IP), what conditions are necessary in order to declare oneself bankrupt before the bank.

By the way, have you seen how much a dollar is already worth? Start making money on the difference in exchange rates here!

From this article you will learn:

How can a private individual declare himself bankrupt and what will this give him?
What are the consequences of declaring an individual and individual entrepreneur bankrupt;
How and what steps should be taken to declare yourself insolvent;
What kind of court decision can there be in a bankruptcy case?
And is it worth seeking professional help when declaring yourself bankrupt?

Also at the end of the article, readers will find answers to frequently asked questions.

The financial side is one of the most important in life. That is why legal protection in this area is very important. In many cases, it is the bankruptcy procedure that helps to cope with a difficult situation.

We wrote about bankruptcy - what it is, what signs and stages this procedure has, in a separate article.

Therefore, the article will be useful to absolutely all individuals, as well as individual entrepreneurs. Absolutely everyone should know the specifics of declaring citizens insolvent .

It is important to understand that in an economic crisis, even those who currently regularly pay off their loans and cope with their financial responsibilities can find themselves in a difficult situation. Read more about the features of the bankruptcy procedure right now!

Who can file bankruptcy for an individual

All parties to the process may submit an application to the court to declare the debtor bankrupt, in whose interests it is to confirm his insolvency. Thus, the filing can be carried out

The debtor himself is an individual;
Legal representative of the debtor (lawyer). But a lawyer can do this only if he has a document confirming his authority (a notarized power of attorney);
Any creditor of the debtor. Creditors have the right to write an application if the duration of the delay exceeded 90 days, and the amount of the debt amounted to more than 500 thousand rubles;
Authorized body. If all signs of bankruptcy are identified, the tax service can file instead of the debtor.

The best option would be to file a claim yourself. Otherwise, creditors or an authorized body will do this for the debtor. They have the right to choose a financial manager, which may negatively affect the bankruptcy procedure. After all, a financial manager loyal to creditors can significantly complicate the life of a bankrupt.

What is better: write an application yourself or contact a lawyer?

Just knowing how to correctly write a bankruptcy petition for an individual is not enough to obtain confirmation of your lack of creditworthiness. Even a correctly drafted claim does not guarantee the successful recognition of your bankruptcy. After all, in addition to this, it is necessary:

create an image of a respectable borrower;
monitor the actions of the appointed financial manager;
develop a debt restructuring schedule;
monitor the progress of the sale of property, preventing the inclusion in the bankruptcy estate of material assets necessary for living or working.

A bankruptcy lawyer representing your interests on the basis of a power of attorney can not only file an application with the court, but is also empowered to protect all your rights within the framework of the bankruptcy process, including participating in court hearings for you. This will allow the debtor to save personal time and nerves, and will also be the key to successful approval of bankruptcy status

Still have questions? Receive a free initial consultation from leading experts in the field of bankruptcy of individuals by contacting us in any way convenient for you.

Like any arbitration process, establishing bankruptcy status through the court begins with a statement of claim. The applicant must support the information contained therein with documents. In order for an individual’s bankruptcy application to be accepted by the court, all the nuances must be taken into account when drafting it. We will tell you about them.

Bankruptcy of individuals - step-by-step instructions for 2021

What is the procedure? Personal bankruptcy is a helping hand for those who are mired in debt. A person who is unable to fulfill his obligations turns to a special company, where within a few months professional lawyers help him free himself from the claims of banks and debt collectors. And the first step to bankruptcy is to calculate all the pros and cons, weigh the risks and decide whether this is exactly what you want.

We recommend that you familiarize yourself with the Pros and Cons of Bankruptcy for Individuals

Many citizens fear that after the bankruptcy procedure they will no longer be able to contact the bank to obtain a car loan, mortgage or other loan. But that's not true. In theory, credit institutions should turn away from the bankrupt, but practice speaks for itself. Within a couple of years after the completion of the procedure, banks are willing to cooperate and issue car loans, mortgages and other loans to former bankrupts.