We know everything about bankruptcy
29/12/2024
Sunday
29 December 
1970 The 36-year civil war in Guatemala ended in reconciliation between the parties.
1970 Catherine II introduced paper money.
1970 Catherine II introduced paper money.
1970 The Russian Empire was divided into eight provinces by the decree of Peter I.
THE RESULTS OF 2020: WHAT CHANGES OCCURRED IN BANCRUPTCY LEGISLATION IN THE OUTGOING YEAR
Bankruptcy law, like many other areas of law, does not stand still and is constantly changing. The outgoing year was no exception and we want to remind our readers about the most important changes that occurred in the area of bankruptcy in 2020.
The introduction of a moratorium on bankruptcy due to the pandemic
In April of the outgoing year, the Government of the Russian Federation made a decision to introduce a moratorium on bankruptcy for large, strategic and backbone enterprises. The rule of law was adopted in order to protect important entrepreneurs from bankruptcy, which could lead to significant losses for the economy.
However, the coin has two sides, and a number of companies abandoned the privilege, since the impossibility of distributing dividends, which did not suit everyone, came along with the protection from bankruptcy.
The law on extrajudicial bankruptcy of individuals entered into force
Long discussions about the procedure for conducting bankruptcy proceedings for individuals out of court ended with the adoption of a law on extrajudicial bankruptcy. Now a person, who has a debt to creditors from 50,000 to 500,000 rubles, has the right to apply to the MFC to file for insolvency.
An important criterion for such a legal possibility is the bailiff's action to return the writ of execution due to the impossibility of collection on it.
In addition, by the end of the year, proposals to provide citizens with the right to file a petition for their own bankruptcy not only through the out of court procedure, but also online - through the State Services portal, have started to be discussed, but this rule of law is not in force yet.
Adoption of the Survey of the Supreme Court of the Russian Federation, which established the possibility of subordination (downgrading) of the claims of the persons controlling the debtor
The affiliation of the creditor and the debtor in a bankruptcy case often creates problems for the rest of the participants in the process, who are sometimes forced to be involved into an unequal contest. This injustice was eliminated by the Supreme Court of Russia, which indicated the legal possibility of downgrading the claims of the creditors affiliated with the debtor.
The Highest Court, in particular, designated the possibility of satisfying the claims of a creditor affiliated with the debtor after satisfying the claims of other creditors in a situation where the debt to the affiliated person is based on an agreement concluded at the time of the debtor's financial crisis. What is more, in the same Survey, the Highest Court noted that the mere fact of the affiliation of the debtor and the creditor is not a reason for downgrading the claims of the latter in the Register of the creditors’ claims.
