In Russia, the mechanism of pre-trial rehabilitation can work.

The Ministry of Economic Development has prepared a draft law to prevent bankruptcy in a pre-trial order. Pre-trial rehabilitation, according to the ministry's employees, will allow debtors to receive a delay in paying taxes and not spend money on court procedures in cases where it is possible.

As you know, currently there is actually only one way to resolve financial conflicts in the country before the onset of bankruptcy – a settlement agreement. Representatives of the Ministry believe that it causes a number of difficulties. First of all, the debtor must conclude an agreement with each of the creditors separately. The rehabilitation mechanism allows these problems to be eliminated without initiating an insolvency case in court.

According to the RBC publication, referring to representatives of the ministry, amendments to the legislation will allow the parties to the conflict to come to a compromise, opening up a chance for the creditor to restore solvency. In the conditions of the current moratorium on bankruptcy initiated by the creditor, the relevance of the bill seems obvious.

Experts interviewed by RBC consider pre-trial rehabilitation relevant because of its speed and confidentiality. Experts note that in its current form, the bankruptcy procedure often stigmatizes the debtor, not allowing him to get out of the financial hole in which he found himself.

Given that the rehabilitation involves the ability to negotiate with all creditors at once, such business rehabilitation can get another chance to solve financial issues as efficiently as possible.

At the same time, it is impossible to guarantee that such a reorganization will not lead the parties to court. We are talking only about an additional opportunity provided at the legislative level.

Lawyers note that the mechanism proposed by the Russian department is in the trend of those initiatives that are being developed in other countries of the world. Regulation of debt restructuring issues is being discussed in a number of European countries on a preventive basis.

If the bill is adopted in its current form, citizens and organizations in Russia will have the right to seek an agreement with their creditors, change the procedure and deadlines for fulfilling their obligations. It will be possible to provide collateral and/or surety, suspend enforcement proceedings. At the same time, the debtor can be required to disclose the information specified in the agreement.

It is assumed that the pre-trial rehabilitation will be approved in the arbitration court. Creditors who own 75% or more of the debtor's obligations must be directly involved in signing the transaction. The debtor himself, applying to the court with an application, should not have debts on wages, social payments, alimony.