The number of bankruptcies of individuals in Russia increased by a third

In the first quarter of 2022, the number of individuals declared bankrupt by the court increased by 33% compared to the same period of the previous year.  54.2 thousand people were declared insolvent.  Despite this, the growth rate still slowed down compared to 2021, when the difference between the first quarter of 2020 and 2021 was more than 80%.

The ranking of regional leaders in terms of the number of insolvency cases has also changed. The Krasnodar Territory and the Moscow Region took the first position, while the capital used to be in the lead.

As a rule, the initiators of insolvency cases are the debtors themselves. Therefore, we can conclude that the moratorium on bankruptcy introduced by the Government of the Russian Federation will not greatly affect the number of insolvency cases of individuals. This is due to the fact that the measure closes the possibility of initiating the procedure only on the part of creditors, while debtors remain entitled to file relevant applications for themselves. You can read more about the introduced government measure in our material.

According to the head of the Ministry of Economic Development, the slowdown in the growth rate of personal bankruptcies of citizens is probably due to the stabilization of the overall epidemiological situation due to the coronavirus pandemic.

This, in turn, led to an improvement in the financial condition of citizens, Izvestia reports. What is more, a gradual slowdown in the growth of bankruptcy cases may be due to the fact that at the beginning of the introduction of the institution of personal bankruptcies, there were very few of them. Then there was potential for growth, which is now almost exhausted. Despite this, according to the head of Fedresurs, Alexei Yukhnin, the growth in the number of new insolvency cases is still significant.