How to file for personal bankruptcy faces + sample for 2021

An application for bankruptcy of an individual is submitted to the arbitration court in order to begin insolvency proceedings. Without submitting this document, obtaining status is impossible. But this does not necessarily have to be done by the debtor, although he has such an opportunity. The document can also be sent by other interested parties, for example, creditors.

In order for a case to be considered in court, the debtor must meet a number of requirements. All of them are set out in the text of Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”. If the conditions are not met, consideration will be denied. The same applies to formal requirements for the design of the document itself and its annexes.

When to file for bankruptcy

A bankruptcy application may be filed subject to the following conditions presented in Article 213.3 of Federal Law No. 127:

the amount of a citizen’s debt is from 500 thousand rubles. Often in the media and on the Internet there are proposals to initiate bankruptcy of an individual with a debt of 300 thousand rubles, however, this is possible if the person is an entrepreneur. For ordinary citizens, the minimum is spelled out very clearly, and it is half a million rubles;
the delay in execution is from three months from the date established by agreement or law. For example, if the loan must be repaid at the beginning of March, you can file for bankruptcy no earlier than the beginning of summer, if the debt was not repaid during this period.

Formally, you can submit an application even if the conditions do not meet, but this will be followed by a refusal. These requirements are presented to initiate a case in court. Therefore, if the amount of debt and the period of delay are less, then it is better to postpone the application of the procedure and try to find other ways to solve the problems that have arisen.

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.

Where to file for bankruptcy

Bankruptcy cases are considered only in arbitration courts . General jurisdiction does not have the right to make appropriate decisions, even if we are talking about the insolvency of citizens conducting business activities (for more information about how arbitration courts consider bankruptcy cases, read this article >>).

The application is sent to the debtor's place of residence . However, there are not arbitration courts in every city; as a rule, there is one per region. Therefore, you will have to submit documents to the appropriate regional court, which is most often located in the capital of the region or region.

Link to document: Federal Law No. 127-FZ of October 26, 2002 “On Insolvency (Bankruptcy)”

The legislative framework

When submitting an application, you must be guided by Chapter X, and in particular, paragraph 2 of Art. 213.4 of the Law of October 26, 2002 No. 127-FZ “On Insolvency (Bankruptcy)”, which states that every citizen of Russia has the right to apply to the court with a request to declare him bankrupt.

This is possible if there are circumstances confirming the impossibility of repaying debts on time, and there are signs of the citizen’s insolvency.

An application for bankruptcy of an individual, a sample of which is given below, can be filed in court by citizens and individual entrepreneurs. Bankruptcy applies to almost all types of debts, including loans.

The exception is arrears of alimony and unreimbursed damages for causing harm to the health and lives of other citizens.

Contents of the statement

On the one hand, you can always apply and fill it out yourself. However, do not think that the procedure is so simple. The final result will largely depend on a correctly completed application.

The document consists of several parts:

A cap . This is the name of the section in which all the necessary details of the parties and the main characteristics of the document are indicated, for example, information about the court that will consider it, about the debtor who may be declared bankrupt, as well as about creditors who must take part in the process.
Main part . This section describes the main factors that are important for the consideration of the case, that is, information about the debt, the reason for its occurrence, the level of income of the debtor, how it has changed recently, the presence of dependents, property, as well as transactions, which have been carried out over the past three years.
The pleading part . This section specifies not only a request to declare a citizen bankrupt, but also other points, for example, the appointment of a certain person as manager, the beginning of a restructuring procedure or sale of property, and so on, depending on the circumstances of the case.
List of applications . All documents that can confirm the applicant’s position are attached to the application. These will be contracts confirming the purchase or sale of property, certificates from work indicating income and its dynamics, papers confirming expenses, and so on.

There is always a signature and date at the end.

The application can be submitted by both the debtor and his representative. If someone else is acting on behalf of a person, then the power of attorney must expressly state that he has the right to act within the framework of the bankruptcy procedure. The court will refuse to accept the document if general or vague language is used.

Sample application for bankruptcy of an individual:

Download an application for declaring a citizen bankrupt (sample/form)

Remember that the outcome of the case may depend on the correctness of the application . If you need help preparing this document, please write about it using the form below >>

How to file a bankruptcy petition

If you are determined to carry out the entire procedure yourself, you will have to draw up an application for insolvency and submit it to the Arbitration Court at your place of registration. The form is uniform for all potential bankrupts and is approved by law, which has been in effect for more than five years. Therefore, the first step to success is a correctly drawn up application and a package of documents attached to it.

We recommend that you read the Documents required to declare a citizen bankrupt in 2021

What must be indicated in the application:

In the “header”, in the upper right corner of the sheet, indicate the address of the Arbitration Court. Important: this must be the authority at the place of your registration - “registration”.
Next, we indicate your data: full name, date and place of birth, passport details, INN and SNILS numbers. Be sure to include your registration address and contact telephone number.
Then list all those to whom you owe money: in addition to the correct legal name of the banks, it is important to indicate their legal address. For individual creditors, you must indicate their place of residence or registration.
In the application itself we list all credits, borrowings and debts in chronological order. Do not forget to add the loan amount and the amount of debt at the time of application.
If there are enforcement proceedings opened against the debtor, they must be listed as well.
Next, we describe the reasons that led to financial insolvency, delays and the inability to pay debts as before.

If the reason for the delay was illness, all medical documents that confirm this must be attached to the application.

We indicate the place of work, income, marital status and number of dependents.
Next we list all the property that you own. That is, we inform you about the availability of movable and immovable property, luxury goods and everything that can be sold. It is useless to lie in this case, because the arbitration manager will definitely find everything and, if the property is subject to sale, will sell it and include the proceeds in the bankruptcy estate. Concealment of property threatens to be charged with fraud.

We recommend that you read what property is not subject to sale in bankruptcy proceedings

We tell you about all the property transactions that you have carried out in the last three years. All of them can be challenged.
Specify the SRO from among whose members the arbitration manager will be appointed. That is, even before submitting the application, you will have to negotiate with the arbitration manager and agree on the cost of his services. No one will just take your case.
Finally, we list the documents that you will provide with your application. It is important to understand that a universal list of documents simply does not exist. It will be different in every situation. Only a professional lawyer will tell you what papers you need to prepare in your case.

What else is needed to start bankruptcy proceedings?

One application and its annexes are not enough to begin the insolvency procedure of a citizen. There are some expenses that are needed first, including:

state duty in the amount of 300 rubles;
initial payment for the services of an arbitration manager in the amount of 25,000 rubles.

It is also necessary to prepare evidence that the application and necessary documents were transferred to other participants in the process. Most often, papers are sent by mail, registered letters with an inventory of the contents. Accordingly, you will need a copy of the inventory and a receipt for sending the envelope, as well as an extract from the Russian Post website and tracking of this shipment.

The application will be considered by the court within a period not exceeding five working days from the date of its receipt . Within this time period, the court will determine what to do next: consider the case, suspend the process, or completely refuse to accept the person.

After considering the application, the court issues a ruling on scheduling a court hearing (or refusing to accept it). In case of a positive decision, the parties are notified of the start date of the process, they are invited to express their objections and prepare a position. If necessary, data is requested in various structures.

Read: What are the consequences of deliberate and fictitious bankruptcy of an individual

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.

Without which independent bankruptcy will not take place

Before taking the application to the court, you need to make a copy of the document and send it to all creditors, and when submitting the application, do not forget to attach receipts for sending it. Without this, the court will not accept the case. In addition, the application will not be accepted if you do not pay a state fee of 300 rubles and do not deposit 25 thousand rubles with the arbitration manager. That is, without even knowing whether you have a chance of bankruptcy or not, you must spend more than 25 thousand rubles. In case of bankruptcy through a law firm, this will not happen, since even at the stage of initial consultation, professional lawyers will assess all possible risks and, if bankruptcy is impossible, they will warn you about this.

The application can be submitted not only in person, but also through the Russian Post or through the electronic document management system “My Arbitrator”, having previously registered on the State Services portal