Putin signed a law on expanding access to out-of-court bankruptcy

Russian President Vladimir Putin signed a law expanding the circle of persons who have access to the out-of-court bankruptcy procedure through multifunctional centers (MFCs). The document was published on the official Internet portal legal information.

First, the out-of-court bankruptcy procedure can be used by citizens who have not repaid a debt in the amount of 50 to 500 thousand rubles. Now the maximum debt threshold is increased to 1 million rubles, the minimum is reduced to 25 thousand. Repeated out-of-court bankruptcy will be available in 5 years, and not in 10 years. The initiative was proposed by the government.

The list of persons to whom the procedure is available includes citizens whose main income is a pension. The list also included recipients of monthly benefits in connection with the birth and upbringing of a child (if they do not have property that can be recovered).

The law on the out-of-court bankruptcy procedure in the Russian Federation came into force in September 2020. The procedure takes six months. By data of the Unified Federal Register of Bankruptcy Information, from September 2020 to June 2023, 18,697 out-of-court procedures were registered with a total debt of 6.44 billion rubles. 13,282 of them were completed with a debt of 4.62 billion rubles.

Lusine Balasyan