A man reads a book with bancruptcy law in the Moscow Arbitration Court.
Photo: Dmitry Lekay
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Russians to Be Allowed to Declare Bankruptcy
Russia’s Economic Development Ministry has submitted to government a bill enabling the Russians to declare themselves bankrupt and, therefore, avoid property seizure, Vedomosti reported. The bureaucrats expect this move to protect from the property seizure a solvent debtor that experiences some temporarily difficulties.
Only the entities may declare bankruptcy today, while the individuals have to pay till complete settlement of the debt.
Under the bill, any resident that has failed to pay off the debt of at least 100,000 rubles within half a year could be deemed bankrupt. But no debt release will happen if the amount is less than 100,000 rubles and a debtor fails to prove he/she has been unable to get out of debt due to grave living circumstances.
The bankruptcy could be initiated both by creditors and a debtor that will be able to seek debt restructuring for five years. A resident will be free of the debt if the restructuring schedule is duly observed or part with the property otherwise. The bankruptcy may not be declared more frequently than each five years.
www.kommersant.com
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