Extrajudicial bankruptcy regulations may be soon changed in Russia

The Ministry of Economic Development is working on the issue of amending the law on insolvency as part of the procedure for out-of-court bankruptcy of citizens.  Among the legal developments, there is a proposal to allow applicants to correct the data they indicated when initiating bankruptcy.

Corrections of information may be related to the debtor's application for out-of-court bankruptcy, to which he will be entitled to make adjustments.  It is proposed to set a deadline for such a possibility - within a month from the moment the information about the beginning of the procedure is included in the UFRBI.  At the same time, the process of correction the previously submitted application s will also be carried out through the MFCs, Izvestia reports.

According to Ilya Torosov, Deputy Head of the Ministry of Economic Development and Trade, the draft law being developed by the department does not provide for any restrictions on the nature of the amendments.

In particular, the debtor will be able to change the list of creditors previously named by him and indicate the specific amounts of debts to them.

The creditors, in turn, are provided with the possibility of judicial influence on the debtor in a situation where the latter is abusing his rights.  They may file a claim against the debtor’s right to waiver rules.

Earlier it was also proposed to increase the debt threshold, up to which a citizen has the right to initiate out-of-court bankruptcy.  It was proposed to raise it to 1 million rubles.