FSSP: up to 500 thousand debtors-individuals can file for bankruptcy

MOSCOW, December 27. From 300 to 500 thousand potential debtors from among individuals can apply for bankruptcy. Such data has resulted on Tuesday by the head of the Federal bailiff service (FSSP) Russia Arthur Parfenchikov.

October 1, in Russia came into force the law on bankruptcy of physical persons, according to which citizens who are unable to pay banks for loans, can relieve themselves of debt by declaring themselves bankrupt. Previously, the law “On insolvency (bankruptcy)” allowed to do this only in respect of legal persons.

“We expect 300-500 thousand potential debtors have the right to file for bankruptcy,” said Parfenchikov.

According to him, the sharp decline in the number of debtors-individuals will not. “Some kind of collapse we don’t expect. Maybe on the credits part (debtors) will take to the bankruptcy system. But a large number of credits – there is a small amount,” added the chief bailiff.

In his opinion, the impact of the new law will become clear by the end of the first half of next year. “Let’s wait for court decisions. The results to sum to 1 July. I certainly endorse this system (individual bankruptcy) – this is a civilized way”, – said the head of the Federal bailiff service.