LOW-INCOME CITIZENS AND RETIREES WILL BE ABLE TO EASILY INITIATE THEIR OWN BANKRUPTCIES

A draft law that gives the right to low-income citizens and retirees to initiate their own bankruptcy under simplified requirements has been submitted to the State Duma. The amendments are expected to be introduced into the Insolvency Law.

A law on out-of-court bankruptcy of citizens has been in effect in Russia for more than six months now. Within the framework of the adopted norms, individuals have the right to initiate their own bankruptcy without the participation of a court if they have debts in the range of 50 thousand - 500 thousand rubles, as well as enforcement proceedings terminated against them due to the lack of property.

At the same time, the procedure is not available to retirees and low-income citizens, since they receive a monthly income, from which the bailiffs write off their debts.

Thus, the size of the remaining part of payments may simply not be enough to pay for the necessary needs, note the authors of the draft law. That is why it was proposed to allow out-of-court bankruptcy for those whose income does not exceed two times the subsistence level in the region. In this case, the application can be submitted even if the bailiffs did not terminate the enforcement proceedings.

It is worth saying that such an innovation may have one more consequence - banks will begin to approach the issue of granting loans more carefully, checking the solvency of their borrowers.