THE PRESIDENT OF RUSSIA SIGNED THE BILL ON THE EXTRAJUDICIAL BANKRUPTCY INTO LAW

Now citizens will have access to the so-called extrajudicial bankruptcy, which can be processed through the multifunctional centers (MFC) at the place of residence or at the place of stay.

For registration, the total amount of debt to creditors should fall within the range of 50 to 500 thousand rubles, and the bailiff should return the executive document due to the fact that he did not find the debtor's property or money.

The bankruptcy procedure will last six months, during which the alleged bankrupt is prohibited from obtaining new loans, as well as from signing the surety agreements.

During this period, the creditors will be given broad powers to search for the property of their debtor, as well as the possibility of initiating a judicial bankruptcy procedure if the debtor indicated the wrong amount of debt, or did not mention any of the creditors at all.

After a citizen is declared bankrupt, the negative consequences occur for him in the form of a five-year ban on the managerial positions and engagement in the entrepreneurial activity (if the citizen had the status of an individual entrepreneur less than a year before the bankruptcy).  

The new bankruptcy procedure is designed to support the low-income citizens in the difficult situation of financial insolvency and relieve the burden of the courts. The amendment will come into force on September 1 this year.