RusBankrot
We know everything about bankruptcy
05/12/2025
Friday
THIS DAY IN HISTORY:
5 December 
1936 The Stalinist Constitution of the USSR was adopted.
1936 the Stalinist constitution of the USSR was adopted.
1484 Pope Innocent VII initiated the "witch hunt".
1456 An earthquake that destroyed Naples occurred - 35 thousand people died.
1456 occurred an earthquake that destroyed Naples - 35 thousand people died.
5 December
1936 The Stalinist Constitution of the USSR was adopted.
1936 the Stalinist constitution of the USSR was adopted.
1484 Pope Innocent VII initiated the "witch hunt".
1456 An earthquake that destroyed Naples occurred - 35 thousand people died.
1456 occurred an earthquake that destroyed Naples - 35 thousand people died.
CROSS-BORDER BANKRUPTCY WILL COST CREDITORS MILLIONS OF DOLLARS
Initiating a cross-border bankruptcy requires serious financial investments from creditors. In some cases, the total cost of the process can reach $2.75 million. The main reason is the need to conduct parallel actions in several countries, which makes the procedure lengthy and costly. Such data was announced at the IV Kazan International Legal Forum by Tal Inbar, Managing Partner of the cbn.legal Association (Israel).
According to experts, a significant part of debtors distributes assets across several foreign jurisdictions. For lenders, this means that they have to work in each of them, involving local specialists. As a result, such processes often take 5-7 years to complete.
Significant amounts of expenses are also generated due to the need to adapt to foreign legal systems and interact with foreign colleagues. As Irina Shoch, head of the Moscow Bar Association, explained, assets are rarely in plain sight. They have to be searched using detective methods, and the information gathered becomes the basis of a future court case. It is this work that often makes up a significant part of the procedure's budget.
Additional difficulties are associated with a high degree of risk. The initiative largely remains with the debtor. He can terminate the bankruptcy procedure in the Russian Federation, while the creditor is only seeking its recognition abroad. To avoid such a scenario, the preliminary seizure of property becomes an important tool, making it difficult to close the case in Russian courts.
The amount of necessary costs depends on the specific country. According to experts, the process costs at least $250,000 in Israel, from £500,000 to £1.4 million in England, and start–up costs exceed $900,000 in the United States.
The expediency of such procedures, the participants of the event noted, should be assessed taking into account possible costs. At the same time, the uncertainty of law enforcement remains. An example is the inability to consider bankruptcy in jurisdictions not recognized by the Russian Federation (for example, in the Cook Islands of New Zealand). Cross-border bankruptcy requires not only significant financial resources, but also a well-thought-out strategy, taking into account the legal specifics of different states and the potential actions of the debtor.
Photo: Freepik
According to experts, a significant part of debtors distributes assets across several foreign jurisdictions. For lenders, this means that they have to work in each of them, involving local specialists. As a result, such processes often take 5-7 years to complete.
Significant amounts of expenses are also generated due to the need to adapt to foreign legal systems and interact with foreign colleagues. As Irina Shoch, head of the Moscow Bar Association, explained, assets are rarely in plain sight. They have to be searched using detective methods, and the information gathered becomes the basis of a future court case. It is this work that often makes up a significant part of the procedure's budget.
Additional difficulties are associated with a high degree of risk. The initiative largely remains with the debtor. He can terminate the bankruptcy procedure in the Russian Federation, while the creditor is only seeking its recognition abroad. To avoid such a scenario, the preliminary seizure of property becomes an important tool, making it difficult to close the case in Russian courts.
The amount of necessary costs depends on the specific country. According to experts, the process costs at least $250,000 in Israel, from £500,000 to £1.4 million in England, and start–up costs exceed $900,000 in the United States.
The expediency of such procedures, the participants of the event noted, should be assessed taking into account possible costs. At the same time, the uncertainty of law enforcement remains. An example is the inability to consider bankruptcy in jurisdictions not recognized by the Russian Federation (for example, in the Cook Islands of New Zealand). Cross-border bankruptcy requires not only significant financial resources, but also a well-thought-out strategy, taking into account the legal specifics of different states and the potential actions of the debtor.
Photo: Freepik
07.10.2025
