The number of individual bankruptcies is growing in Russia

Recently, there has been a gradual increase in the number of judicial and out-of-court individual bankruptcies bankruptcies in Russia.  According to Ilya Torosov, who holds the post of the Deputy Minister of Economic Development, this indicates an increase in the level of confidence in the procedure.

In the first nine months of this year, there were 1.8 times more individual judicial bankruptcies than in the same period of the previous year.

In figures, this number exceeds 137 thousand people. At the same time, there has been an increase in out-of-court insolvency procedures, which are carried out through the MFCs. According to the data contained in the Unified Federal Register of Bankruptcy Information, over 2,800 people have already gone through this procedure.

The possibility of judicial bankruptcy of citizens has existed since the fall of 2015, and the right to conduct an out-of-court procedure arose only a year ago. At the same time, in both cases, the bulk of cases are usually initiated by the debtors themselves, while in the case of bankruptcy of companies, as a rule, the initiators are their creditors, reports Interfax.

According to Alexei Yukhnin, who heads the Fedresurs project, bankruptcy of citizens is gradually gaining popularity, but there has been no significant surge in procedures due to the pandemic.

Apparently, during the pandemic, the debtors were able to cope with the existing financial difficulties differently.

At the same time, the procedure for out-of-court bankruptcy of citizens is gradually becoming more popular and understandable. In the first months after the launch of the MFCs, up to 80% of the insolvency petitions filed were returned. Now about 40% of cases are initiated. As a result of the completion of the procedure for extrajudicial bankruptcy of citizens, 985 million rubles of arrears have already been written off from them.