Millions of bankrupt
On Tuesday, the Supreme court discussed the draft resolution of the Plenum concerning the application of the law on bankruptcy of physical persons. the New law takes effect in two days, from October 1, 2015, and provides that any person will be able to ask for bankruptcy protection if its debt exceeds 500 thousand rubles, and that he was unable to pay off all creditors.
Judicial procedure may be initiated and creditors.
Recognised by the bankrupt debtor is relieved of the unpaid portion of the debt. The law stipulates that the bankruptcy court can no more often than once in five years. This status may qualify and those whose debts arose until the entry into force of the law.
According to the judge of the Supreme court Irina Bukina, introducing the draft resolution at the plenary session, to consider bankruptcy proceedings, will the arbitration courts at the place of residence of debtors. Judge of the Arbitration court of Moscow region Elena Petrova has told that, according to the Ministry of economic development, next year in arbitration courts of Moscow and Moscow region can enter up to 4 million of the Declaration of bankruptcy of physical persons.
The press service of the Ministry of economic development reported that these figures the courts, the Ministry has not provided, and therefore cannot comment on them.
According to the lawyer, Ruslan Koblev, the figure of 4 million cases are highly inflated. “Even if you count all those who evades from payment of taxes and debts, the number of debtors will not succeed”, — said Koblev.
Indeed, according to “United credit Bureau” (OKB), the law on bankruptcy of today are about 580 thousand Russians — those who are no longer able to cope with the debt burden. It’s about 1.5% of the total number of borrowers with existing loans. While a lawsuit about its bankruptcy can still 6.5 million Russian borrowers that currently do not pay their loans more than 90 days.
The collection Agency “national recovery service” (NCW) estimates the number of unfair borrowers, unable to cope with the financial commitments, 14% of the total number of debtors. According to NME, in Russia more than 2 million people have overdue debts of more than RUB 500,000 estimated NCW, for the first six months of the new law, the Declaration of personal bankruptcy will serve 200 thousand people, 28 thousand borrowers.
With the introduction of the new law into force, the load on the courts will increase significantly. In Russia in 2014 worked about 3000 of arbitrators, which in total reviewed a million cases per year (in first instance), the NME says lawyer Vladimir Tyurin, citing court statistics. For one judge in Moscow has 120 cases per month, in other regions of Russia — about 60 cases, 20 cases per month. “The workload of judges will increase by approximately two times,” — says Tyurin.
According to the judge Bukina, questions about the extension States will be considered at a later date once the statistical data, while the chairs will distribute the load on the judges themselves.
The implementation of the law on bankruptcy of individuals will also complicate the position of the Trustees in bankruptcy (bankruptcy of individuals they will be referred to as financial management) that are binding for parties to such proceedings. As noted in an interview with the arbitration managing Director Sergey Storozhenko, the cost is very low — only 10 thousand rubles., which the debtor shall Deposit the court. “Altruists, who will work for the money, will be a little” — said Storozhenko.
Who can become bankrupt?
To address in court with requirement about recognition by the bankrupt in case if the total amount of debts of the citizen exceeded 500 thousand rubles. and he does not pay them for three months. If a citizen got into a situation where the payment of the debt will result in the inability to fulfill obligations to other debtors, appeal to the court with the bankruptcy petition transformed from a right into a duty.
Considering a Declaration of bankruptcy, the court has relied on such criteria as the insolvency of the citizen and the insufficiency of its property. To participate in the financial Manager is involved. During the proceedings, conducted the meeting of creditors.
If the court accepts a bankruptcy petition is well founded, it conducts a debt restructuring (changing the rules, conditions and terms of repayment). Suspends the collection under enforcement documents (excluding alimony and compensation of harm to health). Fines, penalties and other sanctions cease to accrue.
After bankruptcy citizen has the right to make transactions for the sum more than 50 thousand rubles. only with written permission from the financial Manager. Also he must ask permission of the Manager receiving and granting loans, issuing sureties, assignment of claims, debt transfer, the trust management of property, transfer of property as collateral. To make a gratuitous transaction prohibited completely. For three years the bankrupt is not entitled to participate in the management of legal entities.
For deliberate and fictitious bankruptcy there is a criminal responsibility.
According to him, there is an option that insolvency practitioners will form “packs” of cases on bankruptcy of individuals, for example a hundred cases to a specialist. “Then maybe this will have some meaning for Trustee,” said Storozhenko.
It is anticipated that within six months of the financial Manager is a repayment plan for debts, and can provide payment by installments up to three years and during this time interest on the debt already accrued. If the debts fail to repay during this time, the court acknowledges the debtor bankrupt and will be allowed to sell his property. The proceeds among the creditors also distributes the financial Manager.
After the completion of the bankruptcy proceedings, all outstanding debts are considered repaid, and the debtor is relieved of further payment. The only exception is the recovery of alimony and compensation of harm, caused to life and health: for these categories of bankruptcy proceedings does not apply.
The talk that Russia needs a law on bankruptcy of physical persons was carried out for about 10 years. Before she had the current normative act, it was suggested that some of his projects. As a result, the law was adopted in 2014 and should come into force on 1 July this year. However, its implementation has not been finished courts, which lobbied for the postponement of the start of validity of this document since October 1.
As reported by the press service of the Ministry of economic development, the Institute of bankruptcy of physical persons is aimed primarily at the protection of honest debtors, is really caught in a difficult situation.