Article 213.9. Financial manager

Home / Bankruptcy / Bankruptcy of legal entities

Back

Published: 08/30/2019

Reading time: 6 min

175

Any procedure for declaring legal entities and individuals financially insolvent takes place in strict accordance with the current norms of Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”. Within the framework of this law, all processes that take place within the framework of this procedure are regulated.

Legal basis
Purposes of creating the registry
The procedure for obtaining information from the register

Bankruptcy of an individual

It's no secret that many of us take out loans from banks for various purposes. Life circumstances often arise in which further debt repayment becomes impossible. For a long time, this problem was insoluble - banks sued debtors, and bailiffs were brought in to collect funds. Last year, the situation changed radically: economic disputes were assigned to arbitration courts, a law on the insolvency or bankruptcy of individuals was adopted. persons

How to become bankrupt as an individual?

Although the Federal Law “On Insolvency (Bankruptcy)” said about a debt of half a million and three months of arrears, a citizen himself can file for bankruptcy for any amount of debt, if he cannot repay debts on time, and also if there is at least one from the following conditions of financial problems:

Bankruptcy procedure

The law defines three stages of this procedure. These include:

Debt restructuring.
Sale of movable and immovable property of an individual.
Settlement agreement with creditors.

A citizen himself, a credit organization or a tax service can submit an application to the arbitration court for recognition of bankruptcy. The amount of debt must be over half a million rubles. 90 days must pass from the date of formation of this debt. The application must be accompanied by an inventory of property, copies of documents on transactions exceeding 300,000 rubles, certificates of payment of taxes and income.

Debt restructuring as a procedure is introduced after an individual’s application is recognized as justified. The sale of property can be carried out if debt restructuring does not produce results. In this case, the citizen is declared bankrupt. A settlement agreement can be signed at any stage of the procedure.

Completion of an insolvency case

One of the anti-crisis management measures may be the completion of an insolvency (bankruptcy) case.

Stopping insolvency proceedings is necessary mainly for business owners who, regardless of their wishes, entered the bankruptcy process (for example, at the request of the tax service), or the situation has changed radically and now it is very necessary to get the company out of the bankruptcy process.

What does the completion of an insolvency (bankruptcy) case mean?

Termination of an insolvency case is an umbrella term that refers to the termination of insolvency proceedings. Because it is precisely a court case.

The consequence of the completion of the insolvency case is the full restoration of rights to the property for the owners.

In other words, the manager regains the company, which in the event of bankruptcy proceedings, he will simply lose.

How to end an insolvency case?

The general grounds for completing an insolvency (bankruptcy) case were specified in Article 57 of the Bankruptcy Law. These include:

Restoring the debtor's solvency in the process of financial rehabilitation;
Restoring the debtor's solvency in the process of external control;
Signing of a peace treaty;
Recognition of the applicant's claims as unfounded during the monitoring process in the absence of other creditors;
Refusal of absolutely all creditors who participated in the insolvency case from the stated claims or demands to declare the debtor insolvent;
Fulfillment of the requirements of creditors entered in the register of claims during any bankruptcy procedure;
Lack of finances sufficient to cover the costs of litigation and the bankruptcy process.

The most commonly used grounds are the conclusion of a peace treaty (it allows debt payments to be distributed over a long period), as well as the settlement of debt claims.

In addition, indirect options for completing an insolvency case are often used. For example, based on the results of the redemption of claims for tax payments.

In any case, the development of a strategy for completing an insolvency case is carried out on the basis of factual circumstances, taking into account the available chances and assets.

Completion of the bankruptcy process is a service that is provided by the relevant anti-crisis companies. The essence of the service is:

Advice regarding the selection of the most appropriate strategy for completing insolvency proceedings;
Assistance in creating conditions for completing the bankruptcy case;
Legal support for the completion of insolvency proceedings at all stages.

Drawing up a draft settlement agreement in an insolvency (bankruptcy) case

As mentioned earlier, one of the most popular anti-crisis control measures is the drafting and conclusion of a peace treaty.

A peace agreement in an insolvency case is a bankruptcy process, following the introduction of which the bankruptcy case is completed.

The very essence of the service lies in the preparation of a draft peace agreement, taking into account all the details of the insolvency case, insolvency law and arbitration practice.

Many anti-crisis law firms have extensive experience in drawing up peace agreements in insolvency cases and are ready to help their clients experience all the benefits of this bankruptcy restoration process.

The most important thing is that a professionally drafted peace agreement can ensure the approval of the peace agreement at a court hearing. And, thanks to this, bring the company out of bankruptcy.

Status

So, the financial manager in case of bankruptcy of individuals comprehensively accompanies all stages of this procedure, that is:

Evaluates the financial capabilities of the debtor.
Interacts with creditors.
Monitors the proper satisfaction of current creditor requirements.

Essentially, its role is to mediate between entities involved in the bankruptcy procedure and represent their positions in court. Moreover, the financial manager controls the process of disposing of a citizen’s property and gives consent to various transactions with him in order to protect the interests of credit institutions and the debtor. Both the debtor and the creditors have the right to nominate a manager. As a rule, the manager nominated by creditors primarily protects their interests. Therefore, it makes sense for debtors to independently choose a manager who will make every effort to defend their position.

Article 50.20. Competition manager

Home | Legislation | Federal Law of February 25, 1999 N 40-FZ “On the Insolvency (Bankruptcy) of Credit Institutions” (lost force) | Chapter VI.2. Peculiarities of bankruptcy proceedings of a credit organization declared bankrupt | Article 50.20. Competition manager

1. By force of law, the bankruptcy trustee in case of bankruptcy of credit institutions that had a license from the Bank of Russia to attract funds from individuals on deposits is the Agency.

In case of bankruptcy of credit institutions that did not have a license from the Bank of Russia to attract funds from individuals on deposits, bankruptcy trustees are appointed as bankruptcy trustees who meet the requirements established by the Federal Law “On Insolvency (Bankruptcy)” and are accredited with the Bank of Russia as bankruptcy trustees in bankruptcy. credit organizations (hereinafter also referred to as a bankruptcy trustee accredited by the Bank of Russia).

In the cases provided for by paragraph 3 of Article 50.11, as well as paragraph 2 of Article 52 of this Federal Law, the functions of a bankruptcy trustee in the bankruptcy of credit institutions that did not have a license from the Bank of Russia to attract funds from citizens on deposits are performed by the Agency.

The Agency is not paid remuneration for exercising the powers of a bankruptcy trustee.

2. Mandatory conditions for the accreditation of arbitration managers with the Bank of Russia as bankruptcy trustees in the event of bankruptcy of credit organizations are:

1) compliance with the requirements for arbitration managers established by the Federal Law “On Insolvency (Bankruptcy)”;

2) absence during the three years preceding accreditation of violations of the legislation of the Russian Federation on insolvency (bankruptcy), leading to a significant infringement of the rights of creditors, unreasonable expenditure of the bankruptcy estate of the credit organization (hereinafter also referred to as the bankruptcy estate), disproportionate satisfaction of creditors’ claims, as well as the absence cases of removal from the duties of a bankruptcy trustee related to non-fulfillment or improper performance of such duties;

3) completion of training according to the program approved by the Bank of Russia.

3. Accreditation of an arbitration manager as a bankruptcy trustee in the event of bankruptcy of credit organizations is carried out by the Bank of Russia on the basis of an application from the arbitration manager within 30 days from the date of its receipt. The said application shall be accompanied by documents confirming the applicant’s compliance with the accreditation requirements established by this Federal Law.

An application for accreditation of an arbitration manager as a bankruptcy trustee in the event of bankruptcy of credit institutions may be sent to the Bank of Russia by a self-regulatory organization of arbitration managers.

The procedure for considering applications for accreditation of arbitration managers as bankruptcy trustees in case of bankruptcy of credit organizations, accreditation, cancellation of accreditation, refusal to renew accreditation is determined by regulations of the Bank of Russia.

The Bank of Russia, in agreement with the federal executive body authorized by the Government of the Russian Federation, may establish additional requirements for the conditions for accreditation of arbitration managers as bankruptcy trustees in the event of bankruptcy of credit institutions.

The validity period of accreditation of an arbitration manager as a bankruptcy trustee in case of bankruptcy of credit organizations is one year. Extension of the validity period of accreditation is carried out by the Bank of Russia on the basis of applications from insolvency practitioners sent to the Bank of Russia 30 days before the expiration of the accreditation period. The Bank of Russia issues an accreditation certificate to an arbitration manager accredited as a bankruptcy trustee in the event of bankruptcy of credit institutions.

4. Losses caused by a bankruptcy trustee accredited with the Bank of Russia as a result of his failure to fulfill or improper performance of his duties to persons participating in a bankruptcy case shall be compensated at the expense of his property and liability insurance in case of such losses.

A bankruptcy trustee accredited by the Bank of Russia, within 10 days from the date of his approval by the bankruptcy trustee in the bankruptcy case of a credit organization, must insure his liability in case of causing losses to persons participating in the bankruptcy case, in an amount depending on the estimated value of the credit institution’s assets. organization as of the last reporting date, calculated by the temporary administration based on the methods established by the regulations of the Bank of Russia, namely:

3 percent of the value of assets exceeding 100 million rubles, with the value of assets from 100 million rubles to 300 million rubles;

six million rubles plus 2 percent of the value of assets exceeding 300 million rubles, with the value of assets from 300 million rubles to one billion rubles;

20 million rubles plus 1 percent of the value of assets exceeding one billion rubles, with an asset value of more than one billion rubles.

A message about the proper provision of liability of a bankruptcy trustee accredited with the Bank of Russia is sent by him within the specified period to the arbitration court and the Bank of Russia.

5. If approved in the manner prescribed by this Federal Law, the Agency's bankruptcy manager is not subject to requirements for liability insurance in the event of losses to persons participating in the bankruptcy case.

6. The Agency exercises the powers of a bankruptcy trustee through a representative appointed by him from among his employees, acting on the basis of a power of attorney.

The Agency is obliged to send to the arbitration court and the Bank of Russia a message about the appointment of a representative in the bankruptcy case within five days from the date of the arbitration court’s decision to declare the credit organization bankrupt and to open bankruptcy proceedings or to issue a judicial act approving the Agency’s bankruptcy manager in cases provided for paragraph 3 of Article 50.11 and paragraph 2 of Article 52 of this Federal Law.

In the event of circumstances arising that make it impossible for a representative of the Agency to exercise his powers, including as a result of his removal from the duties of a representative of the bankruptcy trustee in the manner provided for in paragraph 4 of Article 50.24 of this Federal Law, the Agency is obliged, within five days from the date of occurrence of these circumstances, to send Arbitration court and Bank of Russia notice on the appointment of a new representative of the bankruptcy trustee.

7. The Bank of Russia has the right to cancel accreditation or refuse to extend the accreditation period of a bankruptcy trustee accredited with the Bank of Russia if one of the following grounds exists:

1) removal of the bankruptcy trustee by the arbitration court from performing the duties of the bankruptcy trustee;

2) violation of accreditation conditions;

3) violation by the bankruptcy trustee of the legislation of the Russian Federation on insolvency (bankruptcy), which led to a significant infringement of the rights of creditors, unreasonable expenditure of the bankruptcy estate, and disproportionate satisfaction of creditors’ claims.

8. If the Bank of Russia cancels the accreditation of a bankruptcy trustee accredited with the Bank of Russia, he is removed by the arbitration court from performing his duties on the basis of an application from the Bank of Russia.

9. The decision of the Bank of Russia to refuse accreditation, cancel accreditation or refuse to extend the term of accreditation can be appealed to the arbitration court.

Requirements

According to bankruptcy law, there are conditions that the financial manager must satisfy. The requirements are as follows:

Lack of personal motives and interest, as well as dependence on a bankrupt citizen or credit institutions.
Absence of outstanding debts due to improper performance of official duties as a financial manager (material damage must be confirmed by a court decision).
No criminal record.
Absence of debts that caused the bankruptcy procedure to be launched.
Lack of status as disqualified or disqualified from performing duties under federal law.

The manager must have a license to carry out his activities, as well as higher professional education in economic or legal specialties. A mandatory condition for the activities of the manager is insured liability in case of damage to the parties to the process.

Requirements for a financial manager

Becoming an SRO employee is not easy. Initially, you need to obtain a higher education. Even non-legal ones are allowed. Additional training is required. It is conducted according to the FU training program. These courses are paid. It will take approximately 50 thousand rubles to pay for them. The training ends with passing an exam by a special commission, including members of Rosreestr. This body is responsible for supervising the work of financial institutions and self-regulatory organizations.

To start working independently, you need to undergo an internship as a FU assistant. In the absence of work experience in significant positions, the presence of experience is less than 1 year, an internship of 24 months is required. If you have at least 1 year of experience in a significant position, the internship will last 6 months.

A mandatory condition for a candidate is the absence of a criminal record for an intentional crime. He must not have any disqualifications when acting as an executive director of the company. These conditions are explained by the fact that the specialist, when conducting the insolvency process of legal entities, is considered to be the actual head of the company. At the end of the bankruptcy process, individuals do not have the right to occupy leadership positions for 3 years.

Taking into account all of the above, a bankrupt person will not be able to become an arbitration manager for 3 years. During this period, there are no free internships in the SRO. And the average market price for this service is 15 thousand rubles. To become a member of an SRO, you will need to deposit money to pay certain fees. Among them, the contribution to the compensation fund is considered expensive. The payment ranges from 50 thousand rubles, as well as liability insurance. Having calculated the main expenses, we point out that the cost of preparing a FU reaches 150 - 200 thousand rubles.

Annually and quarterly, arbitration managers are required to pay membership fees to a self-regulatory organization. The amount of these contributions depends on various factors that determine the decisions of the organization.

Appointment of a financial manager

Financial manager in case of bankruptcy of an individual. persons are usually selected from the employees of the arbitration court. In the application for consideration of a bankruptcy case, a citizen must indicate a self-regulatory organization (SRO) and a specific person who will act as a financial manager, but the decision on his appointment will be made by the court. Without instructions from the self-regulatory organization, the application will not be considered. It is impossible to determine who will be appointed, since the manager is selected from all members of the organization. It is important to note that the right to choose an SRO and a specific candidate is vested in the applicant – creditor or debtor.

Arbitration manager

To become an AU, a citizen of the Russian Federation is required to join a self-regulatory organization. In order for a collegial body to accept a new member into its ranks, it must meet the following requirements:

higher education;
At least one year of professional experience in a managerial position;
absence of serious violations of the law and, accordingly, criminal records in the biography;
gaining practical experience as an assistant manager (more than two years);
successful passing of the theoretical knowledge exam;
absence of prohibitions on engaging in certain types of activities (also due to past crimes);
and other requirements established by a specific self-regulatory organization (regarding the integrity or competence of a specialist).

Compliance with the relevant rules allows the specialist to remain a member of the SRO. If he no longer meets the established requirements of the community, then within one month from the moment of discovery of the non-compliance he is excluded.

To join SOAU, a candidate for membership in the community must provide the necessary documents. The collegial body decides on his entry into the ranks of participants. If the answer is positive, then the information is included in the register of SRO participants within three days, and within the next 10 days the new employee is issued a document confirming his membership in the community.

A manager can be a participant in only one SRO

If the answer to acceptance is negative, the applicant is still sent a notification with the results of the decision within 10 days. However, such a verdict can be appealed within six months.

The AU has the right to engage in any other activity, including commercial, if it does not interfere with the performance of duties in conducting the bankruptcy case.

The main responsibilities of a bankruptcy specialist:

analysis of the financial viability of the object;
protection of the debtor's property;
maintaining a register of creditors;
disposal of property and bankruptcy estate;
identification of illegal actions of the debtor or creditors.

The involved employee is obliged to act legally, as well as in the interests of the debtor company and creditors.

The concept of arbitration manager can include the following definitions: temporary, administrative, external or bankruptcy. The difference lies in the functions that the specialist performs at each stage of the bankruptcy case.

Payment for services

A financial manager in bankruptcy provides services on a paid basis. A citizen who declares himself bankrupt pays for these services on his own and is obliged to deposit a fixed amount of 10 thousand rubles into the court deposit. This amount is the cost of the procedure itself. It is also necessary to pay the manager 2% of the amount of the repaid debt or of the proceeds during the sale of the bankrupt’s property. At the discretion of the meeting of creditors, the amount of this remuneration may be increased if necessary. The monetary reward is issued as a lump sum only after the bankruptcy procedure is completed, and interest is issued after the completion of settlements with counterparties and the transfer of funds to their accounts. If the manager requires the debtor citizen to pay for any additional services, these actions are considered illegal. A bankrupt may file a complaint in court.

Rights of the financial manager

The Federal Law on Bankruptcy of Individuals gives the financial manager a number of rights, namely:

The ability to object to the demands of the parties to bankruptcy proceedings.
Collecting information about movable and immovable property of an individual, including sending requests to local government and state authorities.
The right to hold a meeting of creditors, if necessary.
The right to control the bankrupt's debt restructuring plan.
The ability to obtain data from credit history bureaus and similar sources of information specified in this law.
The right to sell property, cancel or support all transactions with it.
The right to exercise other rights specified in the Federal Bankruptcy Law.

Travel ban in case of bankruptcy

A citizen is prohibited from traveling outside the Russian Federation if the amount of debt exceeds ten thousand rubles. However, such a ban is imposed by the bailiff during enforcement proceedings, but in the event of bankruptcy of a citizen, such proceedings are terminated or temporarily suspended. Consequently, the restrictions established by bailiffs are also lifted. Meanwhile, the arbitration court may impose a ban on traveling abroad for the duration of the sale of property as part of a citizen’s bankruptcy case.

However, when the bankruptcy procedure of an individual is completed, this prohibition ends.

Responsibilities of the financial manager

A bankruptcy trustee for an individual has a number of responsibilities, such as:

Collection and organization of meetings of creditors, which are provided for by this law.
Monitoring the implementation of the debt restructuring plan.
Analysis of the financial capabilities of a bankrupt citizen.
Drawing up a report to creditors on the activities carried out at least once every 3 months.
Control of debt repayment to creditors.
Identifying cases of deliberate bankruptcy and taking appropriate measures.
Review and analysis of reports on the progress of the debt restructuring plan.
Other obligations provided for in the bankruptcy law.

Procedure for interaction with a bankrupt

In case of bankruptcy of individuals, the financial manager has the right to gain access to all sources of information that are in one way or another related to the bankruptcy of a particular citizen. Such information includes information about movable and immovable property and its location, as well as property rights and obligations of the debtor, extracts from registers and databases.

It is the responsibility of the bankrupt citizen to provide this information for subsequent consideration by the financial manager within 15 days after the request is received. If this information is not provided by the bankrupt, the financial manager has the right to demand it in court.

The debtor is obliged to provide information about all objects of movable and immovable property in his ownership. Concealing this information from the financial manager and creating obstacles to obtaining it entails the responsibility of the citizen in accordance with this law.

If the manager has received information related to commercial, official, banking or other information that is protected by law, he must not disclose it. If this happens, he bears civil or administrative, and in some situations, criminal liability, and undertakes to compensate for losses.

Bankruptcy manager in the Republic of Kazakhstan - who is it?

Molokostova Kristina

Anti-crisis management center "Perspective 360"

A bankruptcy manager is a specialist who manages a company during bankruptcy proceedings, that is, from the moment the company is declared bankrupt until its liquidation (cancellation of its record in the authorized registration body). Before the adoption of the Law “On Rehabilitation and Bankruptcy” on March 7, 2014, the bankruptcy manager was called a bankruptcy trustee. This name can still be found in various sources.

Bankruptcy manager is chosen by creditors

After the court makes a decision on bankruptcy of a legal entity, the temporary manager convenes the first meeting of creditors. Creditors choose a bankruptcy manager. The candidate must receive more than half the votes from all creditors entitled to vote.

You can select a manager from among the persons registered with the authorized body as an administrator. The register of current administrators is posted on the website of the State Revenue Committee kgd.gov.kz. the resource contains information about all administrators who received permission based on passed exams and tests. Public associations and associations working in the field of bankruptcy can provide assistance in choosing a suitable specialist.

The bankruptcy trustee is appointed by the State Revenue Department

The State Revenue Department checks whether the specialist chosen by creditors is an administrator and whether there is any affiliation, that is, dependence of the administrator on the bankruptcy participants. After this, an order is issued to appoint the candidate as a bankruptcy manager. The State Revenue Department does not have the right to independently select a candidate for the role of bankruptcy trustee: if the selected candidate cannot be appointed, the creditors must choose another.

The powers of a bankruptcy manager are wider than those of the company's management

The bankruptcy manager is vested with powers from the moment of his appointment. The company's management and the temporary manager must provide him with full control over the property, hand over all company documentation, seals, and stamps. The company's management is completely removed from management. The bankruptcy manager replaces not only the sole executive body, that is, the director, but also all other bodies: the board of directors, management board, general meeting of participants, etc.

The bankruptcy manager analyzes all transactions performed and decisions made by the company over the previous 5 years. Identifies violations of the law committed by the debtor's officials, economically unprofitable transactions and questionable decisions of the debtor's management. If necessary, the bankruptcy manager files claims to invalidate transactions and sends statements about identified violations and crimes to law enforcement agencies.

It happens that during the process of analysis, the bankruptcy manager reveals that the bankruptcy of the company was caused by the actions of management, property or documents were hidden, forged or deliberately destroyed, or the deadline for the mandatory declaration of bankruptcy was missed. In this case, the bankruptcy manager is obliged to file a claim to bring the management, accountants or founders to subsidiary liability, or an application for administrative or criminal liability. This means that the guilty person will be liable with personal property for the company’s debts.

The role of the bankruptcy trustee in bankruptcy proceedings

The purpose of bankruptcy is the maximum possible repayment of debts and liquidation of the company (writing off outstanding debts). To do this, the bankruptcy manager creates a register of creditors' claims and controls the order of payments established by the Law. He develops and submits for approval to creditors an estimate of administrative expenses - a summary of all ongoing costs that must be adhered to until the bankruptcy of the company is completed.

The bankruptcy manager requests information about the bankrupt and his property in public and private organizations, certificates of bank accounts and statements of them. In parallel with this, the bankruptcy manager collects debts and property from the bankrupt’s debtors. He is obliged to change, terminate or challenge the validity of a previously concluded agreement, and demand the return of property if such a decision is made by creditors.

One of the main tasks of a bankruptcy manager is to gain control over the bankrupt’s property, conduct an inventory and assessment, and organize its safe storage. The bankruptcy trustee develops a sale plan and then sells off the property. If the bankrupt has collateral, it is subject to valuation and transferred to the collateral creditor, or sold with the rest of the property. If property is lost or stolen, the bankruptcy manager will organize a search for it. The bankruptcy manager uses all received assets for settlements with creditors.

After completing all the necessary actions, the bankruptcy manager draws up a final report, which reflects all the company’s expenses during the bankruptcy period, creditors and the amount of debt to each, as well as payments made. The final report is agreed upon by the creditors, after which it is approved by the court. From this moment, the bankrupt’s debts are written off, and the company is subject to liquidation.

The bankruptcy manager is not the main one in bankruptcy

At first glance, it seems that the main person in the bankruptcy procedure in Kazakhstan is the bankruptcy manager, however, all significant decisions are made by creditors. After appointing a candidate as a bankruptcy trustee, he must enter into an agreement with creditors to conduct the bankruptcy procedure. Such an agreement contains the basic rights and obligations of the bankruptcy manager, the amount of remuneration, liability and other important provisions.

To resolve issues by creditors, the bankruptcy manager convenes and holds meetings of creditors. Creditors control the progress of bankruptcy and the change of stages. Without a decision from creditors, it is impossible to write off illiquid property, carry out an assessment, proceed to settlements, extend or complete the bankruptcy procedure, and also take many other significant actions.

Each creditor has the right to request information about the progress of bankruptcy from the bankruptcy manager. If creditors are dissatisfied with the bankruptcy manager, they have the right to change him to anyone else. They also have the right to appeal the actions and decisions of the bankruptcy manager.

Is it possible to remove the financial manager?

It is possible to remove a specific person who acts as a financial manager. This can happen at the initiative of any party in the bankruptcy process, the decision to remove is approved by the court. In this case, a replacement occurs. The initiative may come from the manager himself or from a self-regulatory organization.

The reason for removal may also be inadequate quality of work when:

This decision was made at a meeting of creditors.
In court, the complaints of the parties to the proceeding about the violation of their rights, harm or losses from the actions of a particular manager were satisfied.
The self-regulatory organization removed the manager due to his committing an administrative offense or crime.

Thus, the financial manager is an important figure in the bankruptcy process of an individual. He has access to all information relating to the debtor's property. Therefore, concealing this information is considered illegal. The rights and responsibilities of the financial manager are established by the bankruptcy law. A manager is an independent person involved in bankruptcy who provides his services only on a paid basis.

[Bankruptcy Law] [Chapter X] [§ 1.1]
. The participation of a financial manager in a citizen’s bankruptcy case is mandatory.

. A financial manager approved by an arbitration court in a citizen's bankruptcy case must meet the requirements established by this Federal Law for an arbitration manager for the purpose of his approval in a citizen's bankruptcy case.

The arbitration court approves the financial manager in the manner established by Article 45 of this Federal Law, taking into account the provisions of Article 213.4 of this Federal Law and this article.

. Remuneration to the financial manager is paid in the amount of a fixed amount and the amount of interest established by Article 20.6 of this Federal Law, taking into account the specifics provided for in this article.

A fixed amount of remuneration is paid to the financial manager in a lump sum upon completion of the procedure applied in the bankruptcy case of a citizen, regardless of the period for which each procedure was introduced.

. Payment of a fixed amount of remuneration to the financial manager is carried out at the expense of the citizen, unless otherwise provided by this Federal Law.

Payment of the amount of interest established by Article 20.6 of this Federal Law is carried out at the expense of funds received as a result of the implementation of a plan for restructuring a citizen’s debts or the sale of a citizen’s property.

If there are disagreements that arise between the financial manager, a citizen and creditors on the issue of payment for the services of persons engaged by the financial manager in order to ensure the fulfillment of the duties assigned to him, these disagreements are resolved in the manner established by paragraph 5 of Article 20.7 and paragraph 1 of Article 60 of this Federal Law.

. The requirement for the financial manager to conclude an additional contract of compulsory insurance of his liability for compensation of losses caused to persons participating in the bankruptcy case of a citizen and other persons in connection with the failure to fulfill or improper performance of the duties assigned to the financial manager in the citizen’s bankruptcy case does not apply.

. The financial manager has the right to attract other persons at the expense of the debtor’s property in order to ensure the exercise of his powers only on the basis of a ruling of the arbitration court considering a bankruptcy case of a citizen.

The arbitration court issues a ruling on the involvement of other persons and on establishing the amount of payment for their services at the request of the financial manager, provided that the financial manager has proven the validity of their involvement and the reasonableness of the amount of payment for their services, as well as with the consent of the citizen.

The financial manager's petition must be considered by the arbitration court within ten days from the date of its receipt.

The arbitration court notifies the persons participating in the bankruptcy case of a citizen about the date and place of the court hearing in the manner established by procedural legislation. Failure of duly notified persons to appear does not prevent the consideration of the financial manager’s application.

If the bankruptcy creditor, bankruptcy creditors and (or) the authorized body agree to pay at their expense for the services of persons engaged by the financial manager, consideration of this issue by the arbitration court is not required. The financial manager does not have the right to give such consent on his own behalf.

. The financial manager has the right:

submit to the arbitration court on behalf of a citizen applications to invalidate transactions on the grounds provided for in Articles 61.2 and 61.3 of this Federal Law, as well as transactions made in violation of this Federal Law;
raise objections to creditors' claims;
participate in the debt restructuring procedure as a third party who does not make independent claims regarding the subject of the dispute, on the side of the citizen in all cases in the courts regarding disputes relating to property (including the collection of money from a citizen or in favor of a citizen, the claim or transfer of property of a citizen or in favor of a citizen);
receive information about a citizen’s property, as well as about the citizen’s accounts and contributions (deposits), including bank cards, electronic money balances and electronic money transfers from citizens and legal entities (including credit organizations), from government authorities , local governments;
demand from the citizen information about his activities to implement the plan for restructuring the citizen’s debts;
convene a meeting of creditors to resolve the issue of preliminary approval of transactions and decisions of a citizen in cases provided for by this Federal Law;
apply to the arbitration court to take measures to ensure the safety of the citizen’s property, as well as to cancel such measures;
declare refusal to execute transactions of a citizen in the manner established by this Federal Law;
receive information from the credit history bureau and the Central Catalog of Credit History in the manner prescribed by federal law;
involve other persons in order to ensure the exercise of their powers only on the basis of a ruling of the arbitration court considering a citizen’s bankruptcy case, on a contractual basis in the manner established by this chapter;
exercise other rights related to the performance of the duties assigned to him, established by this Federal Law.

. The financial manager is obliged:

take measures to identify a citizen’s property and ensure the safety of this property;
analyze the financial condition of a citizen;
identify signs of deliberate and fictitious bankruptcy;
maintain a register of creditors' claims;
notify creditors about holding meetings of creditors in accordance with paragraph 5 of Article 213.8 of this Federal Law;
convene and (or) hold meetings of creditors to consider issues within the competence of the meeting of creditors by this Federal Law;
notify creditors, as well as credit organizations in which the debtor citizen has a bank account and (or) bank deposit, including bank card accounts, and other debtors of the debtor about the introduction of restructuring of the citizen’s debts or the sale of the citizen’s property no later than within five working days days from the day when the financial manager learned about the existence of a creditor or debtor;
review reports on the progress of the citizen’s debt restructuring plan, provided by the citizen, and provide the meeting of creditors with opinions on the progress of the citizen’s debt restructuring plan;
monitor the progress of the citizen’s debt restructuring plan;
exercise control over the timely fulfillment by citizens of current creditor claims, timely and full transfer of funds to repay creditors’ claims;
send to creditors a report from the financial manager at least once a quarter, unless otherwise established by the meeting of creditors;
perform other duties provided for by this Federal Law.

. A citizen is obliged to provide the financial manager, upon his request, with any information about the composition of his property, the location of this property, the composition of his obligations, creditors and other information related to the citizen’s bankruptcy case within fifteen days from the date of receipt of the request for this.

If a citizen fails to fulfill this obligation, the financial manager sends to the arbitration court a request for evidence, on the basis of which, in the manner established by procedural legislation, the arbitration court issues requests to the financial manager with the right to receive answers in hand.

Concealment of property, property rights or property obligations, information about the size of property, its location or other information about property, property rights or property obligations, transfer of property into the possession of other persons, alienation or destruction of property, as well as illegal interference with the activities of a financial manager, in including evasion or refusal to provide information to the financial manager in cases provided for by this Federal Law, transfer to the financial manager of documents necessary to fulfill the duties assigned to him, entails liability in accordance with the legislation of the Russian Federation.

. Information constituting personal, commercial, official, banking, and other secrets protected by law is provided to the financial manager in accordance with the requirements established by federal laws.

Information constituting personal, commercial, official, banking, or other secret protected by law and received by the financial manager in the exercise of his powers is not subject to disclosure, except in cases established by federal laws.

For the disclosure of information constituting personal, commercial, official, banking, or other secrets protected by law, the financial manager bears civil, administrative, and criminal liability.

The financial manager is obliged to compensate for damage caused as a result of the disclosure by the financial manager of information constituting personal, commercial, official, banking, or other secrets protected by law.

. Refusal to execute contracts and other transactions of a citizen may be declared by the financial manager on the grounds provided for in Article 102 of this Federal Law, within three months from the date of introduction of restructuring of the citizen’s debts.

. The financial manager may be released or suspended by the arbitration court from performing the duties assigned to him in a bankruptcy case of a citizen in the cases and in the manner provided for in Article 83 of this Federal Law in relation to the administrative manager.

In the event of the release or removal of a financial manager, the arbitration court approves a new financial manager in the manner prescribed by this article.

Information on the issuance by an arbitration court of a judicial act declaring the actions of the financial manager illegal, on the recovery from the financial manager of losses in connection with non-fulfillment or improper performance of duties in a bankruptcy case of a citizen who is an individual entrepreneur, is subject to inclusion in the Unified Federal Register of Bankruptcy Information within three working days from the date of entry into force of the relevant judicial act.

The message subject to inclusion in the Unified Federal Register of Bankruptcy Information in accordance with this paragraph in connection with the recovery of losses from the financial manager in a bankruptcy case of a citizen who is an individual entrepreneur must indicate the amount of damages recovered from the financial manager in accordance with a judicial act .

Reimbursement of expenses associated with the publication of information about the release or removal of a financial manager from performing his duties in a bankruptcy case of a citizen who is an individual entrepreneur, recognition of his actions (inaction) as illegal, recovery of losses from the financial manager and inclusion of this information in the Unified Federal Register information about bankruptcy is carried out at the expense of the funds of such an arbitration manager.

. No later than ten days from the date of completion of the relevant procedure applied in the bankruptcy case of a citizen who is an individual entrepreneur, the financial manager includes in the Unified Federal Register of Information on Bankruptcy as information a message on the results of the relevant procedure (report) in the manner established by the article 28 of this Federal Law, taking into account the specifics established by this paragraph.

Based on the results of the implementation of the plan for restructuring the debts of a citizen who is an individual entrepreneur, the corresponding message, along with the information specified in Article 28 of this Federal Law, must also contain the following information:

the dates of the issuance of judicial acts on the introduction of the restructuring of a citizen’s debts and on the completion of the restructuring of a citizen’s debts, as well as the dates of the issuance of judicial acts on changing the terms of such a procedure;
the amount of creditors' claims in accordance with the register of creditors' claims as of the date of the judicial act on the completion of the restructuring of the citizen's debts (including highlighting the amount of claims for payment of severance pay and wages for persons working or who worked under an employment contract, the principal debt and accrued penalties ( fines, penalties) and other financial sanctions), the total amount of claims repaid during the restructuring of a citizen’s debts for each line of claims;
information about the date of the creditors’ meeting based on the results of the implementation of the citizen’s debt restructuring plan and the decisions made by him, as well as information about the operative part of the judicial act based on the results of the citizen’s debt restructuring;
information on the number of employees, former employees of the debtor who have claims for payment of severance pay and (or) wages included in the register of creditors' claims.

Based on the results of the sale of the property of a citizen who is an individual entrepreneur, the corresponding message, along with the information specified in Article 28 of this Federal Law, must also contain the following information:

the dates of the issuance of judicial acts on the introduction of the sale of a citizen’s property and on the completion of the sale of a citizen’s property, as well as the dates of the issuance of judicial acts on changing the timing of such a procedure;
the amount of creditors' claims in accordance with the register of creditors' claims as of the date of closing the register of creditors' claims (including highlighting the amount of claims for payment of severance pay and wages for persons working or who worked under an employment contract, principal debt and accrued penalties (fines, penalties) and other financial sanctions), the total amount of claims satisfied during the sale of a citizen’s property for each line of claims;
information on the value of assets not included in the bankruptcy estate, information on the results of the assessment of the debtor’s property, if such an assessment was carried out, indicating the property, the date of the assessment of the property and the value of the property in accordance with the assessment report;
information on the date of the meeting of creditors based on the results of the sale of the citizen’s property and the decisions made by him, as well as information on the operative part of the judicial act on the results of the sale of the citizen’s property;
information on the number of employees, former employees of the debtor who have claims for payment of severance pay and (or) wages included in the register of creditors' claims.

From the date the arbitration court issues a ruling on the completion of the restructuring of a citizen’s debts or the sale of a citizen’s property, the powers of the financial manager are terminated.