Putin supported changing the rules of out-of-court bankruptcy

Russian President Vladimir Putin meeting with members of the government supported changes to the rules of out-of-court bankruptcy proceedings. Among the changes proposed by the Ministry of Economic Development is the simplification of access to the procedure for pensioners, of whom, according to the president, banks “suck blood to the grave.”

The proposed changes were presented by the Minister of Economic Development Maxim Reshetnikov during the meeting.

Among them:

• The maximum bar of debt, at which out-of-court bankruptcy is possible, to be increased from 500 thousand rubles. to 1 million, and lower the minimum from 50 thousand to 25 thousand rubles;
• Reduce from ten to five years the period after which a person has the right to repeatedly resort to out-of-court bankruptcy;
• Allow pensioners and citizens whose only income is social payments to initiate an out-of-court personal bankruptcy procedure one year after the start of forced debt collection from them, and other citizens after seven years.

The president supported the changes and asked the government to implement them “as quickly as possible”. According to Vladimir Putin, Mr. Reshetnikov should pay special attention to pensioners, from whom banks “drink blood.” Financial institutions easily issue loans to older people, and then “to the grave” collect debts, the president said.

The out-of-court bankruptcy procedure in Russia was launched in September 2020. Now it can be used by Russians with a debt of 50,000 to 500,000 rubles. or completed enforcement proceedings, which proved the impossibility of repaying the loan. Out-of-court bankruptcy can be used once every ten years.

About the work of the program – in the material “Kommersant” “Simplified Bankruptcy Remains Too Complex”.

Erdni Kagaltynov