Judicial practice of considering bankruptcy cases in the Chelyabinsk region
Leaving applications without progress
Grounds for returning bankruptcy applications for individuals
Considered bankruptcy cases in the Chelyabinsk region
Financial managers and self-regulatory organizations of arbitration managers
Lawyers and advocates of the Chelyabinsk region in cases of bankruptcy of individuals
In Russia, in 2020, a law came into force, popularly called the law on bankruptcy of individuals, according to which a citizen of the Russian Federation can be declared bankrupt. Now a citizen who finds himself in a difficult life situation can “write off” his debt and get rid of payment if two conditions are met:
- The court must establish that the debtor does not have any property to fully satisfy the creditors' claims.
- The citizen acted in good faith, that is, he did not initially plan not to fulfill his financial obligation to the creditor.
The law obliges citizens whose total debt to banks is more than 500 thousand rubles to apply to the arbitration court to declare him bankrupt if he cannot pay one or more creditors.
Both the debtor himself and the bankruptcy trustee (creditor, for example, the bank that issued the loan) or an authorized body (for example, the tax authority, if there are tax arrears) can apply to the court for bankruptcy.
A prerequisite for starting a bankruptcy procedure at the initiative of a creditor (a bankruptcy trustee or an authorized body) is the amount of the debt is more than 500 thousand rubles and the period of non-fulfillment of obligations to pay the debt is more than three months.
Moreover, if in order to declare a bankrupt individual. a person on the initiative of a creditor, a mandatory condition is that the amount of debt is more than 500 thousand rubles, then in order to declare an individual bankrupt on the initiative of the citizen himself, the amount of debt may be less.
The debtor's right to go to court is related, among other things, to his insolvency.
Signs of insolvency during bankruptcy arise in the presence of at least one of the following circumstances:
- the citizen has ceased to fulfill monetary obligations and (or) the obligation to pay mandatory payments that have become due;
- more than 10% of the total amount of monetary obligations and (or) obligations to make mandatory payments have not been fulfilled for more than one month;
- the amount of debt exceeds the value of the property;
- there is no property that can be foreclosed on.
And if the amount of the debt is more than 500 thousand rubles, and the period of delay in payments is more than three months, then the citizen is obliged to file a bankruptcy petition in court.
You can read about the cases in which a citizen can be declared bankrupt in the article at the link.
Who can benefit from bankruptcy?
Paragraph 1 of Article 213.3 states that an individual has the right to file for bankruptcy:
- the debtors themselves, and citizens are obliged to do this no later than 30 days from the moment they realized their insolvency, otherwise they face an administrative fine of 1 to 3 thousand rubles;
- bankruptcy creditors, financial institutions, other organizations or individual entrepreneurs;
- authorized bodies that recognize structures of the federal, regional or local scale, vested with the right to represent state interests in courts, to represent a subject of the Russian Federation or a municipal entity.
Expert opinion
Dmitry Tomilin
Experience more than 8 years.
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To initiate a court hearing, the applicant is required to submit an application, which is indicated in Articles 213.4 and 213.5 of Law No. 127-FZ. When submitting a package of documents to the court, the applicant is obliged to transfer funds to the arbitration deposit account in the amount of the financial manager’s salary for one procedure for considering the case, as well as pay a state fee.
List of documents
To declare a citizen bankrupt, the following documents are required:
- statement;
- documents confirming the existence of debt (loan agreement, creditor's claim, receipt, etc.);
- an extract from the Unified State Register of Individual Entrepreneurs on the presence/absence of the status of an individual entrepreneur (taken from the Federal Tax Service);
- list of creditors and debtors;
- inventory of property;
- copies of documents confirming ownership of property;
- copies of documents confirming the rights to the results of intellectual activity (if available);
- copies of documents on transactions with real estate, securities, vehicles, shares in the management company (purchase and sale agreements, acts of acceptance and transfer, donation agreements, etc.), if they were made within the last 3 years;
- copies of documents on transactions worth over 300 thousand rubles, if they were made within the last 3 years;
- an extract from the register of shareholders of a legal entity, if the applicant is a shareholder;
- certificates of income received over the last 3 years;
- certificates from banks about the availability of accounts, deposits, cash balances, electronic money balances, statements of transactions;
- a copy of SNILS and information about the status of an individual personal account;
- a copy of the decision of the Employment Center (PEC) to recognize the applicant as unemployed (if available);
- copy of TIN (if available);
- a copy of the marriage certificate, if it has not been dissolved at the time of filing the application;
- a copy of the divorce certificate, if it was issued within the last 3 years;
- a copy of the marriage contract (if any);
- a copy of the agreement on the division of property of the spouses, if it was adopted within the last 3 years;
- copies of children's birth certificates (if any);
- receipt of payment for the services of the financial manager;
- receipt of payment of state duty.
We invite you to familiarize yourself with: Sample agreement for donating money between close relatives
Each copy of the document is marked with o, surname, initials, date and signature.
The validity period of the extract from the Unified State Register of Individual Entrepreneurs is 5 working days!
In what cases is an individual declared bankrupt?
Article 213.3 of Law No. 127-FZ specifies the circumstances under which a citizen must declare himself bankrupt:
- the total debt to all creditors is at least 500 thousand rubles;
- debt period - more than 3 months from the date of occurrence of payment obligations
Many people are interested in the question: can banks file for bankruptcy? They can. If the application is submitted by a bankruptcy creditor or an authorized body, then only the amount of debt for a specific person whose interests they represent is taken into account. The amount of delay is the same. Bankruptcy creditors and authorized bodies can initiate bankruptcy proceedings only if there is a valid court decision that confirms the claim of debt creditors. The document indicates the reasons why the debtor is declared bankrupt. Documents confirming the debtor’s obligations and his insolvency are attached to the application.
Arbitration manager Bankruptcy of individual entrepreneurs Bankruptcy of individuals
At his own discretion, the debtor may file for bankruptcy under other circumstances:
- the amount of unpaid obligations is less than 500 thousand rubles, but the person is sure that he will not be able to repay current loan payments on time;
- the period for mandatory payments has already expired;
- More than 1 month has already passed since the moment when the amount of 10% of all debt obligations was due to be paid;
- the value of the property owned by the debtor does not cover all debts;
- The bailiffs sent a notification that the enforcement proceedings had been completed due to the impossibility of collecting the required amount of debt from the citizen.
In such a situation, the debtor will have to prove to the court that his demands are fair. To do this, it is necessary to collect documents confirming the above circumstances. The court may find that the facts provided are insufficient and refuse to accept the application. In this case, you need to find out the reason for the refusal and supplement the package of documents.
Pros and cons of bankruptcy of an individual
Among the positive points it should be noted:
- the issue with debts will be resolved, you will not have to endure reproaches from creditors and communicate with annoying collectors;
- debts will no longer increase, the accumulation of interest will stop, fines and penalties will not be charged;
- the debtor will not lose more than what he owns at the time of bankruptcy.
All debts on loans, taxes and payments to government agencies will be written off, even those that have not been repaid in full, but in the case of paying alimony debts and compensation for harm to someone else’s health and life, this rule does not apply. Of course, there are disadvantages: the debtor’s reputation will be damaged, the credit history will deteriorate, and it will be difficult to borrow again; until the end of the procedure, you are not allowed to travel abroad, but for a good reason, for example, to attend the funeral of a close relative, you will be allowed to go; the procedure is expensive. But all the disadvantages are nothing compared to freedom from debt obligations and a quiet life.
Would you like to write off all your debts?
A free consultation with our specialists will allow you to compare risks and take the first steps towards bankruptcy.
Send a request
What debts are written off when an individual goes bankrupt?
According to Law No. 127-FZ, declaring an individual bankrupt entails writing off debts:
- under loan agreements with banks;
- for loans taken from microfinance organizations;
- on borrowed funds received from other citizens, individual entrepreneurs and organizations;
- on taxes and fees to state funds.
It is not allowed to write off debts: for alimony obligations that arose after causing harm to health and life (compensation for damage); resulting from a crime committed; formed after bringing a citizen under subsidiary liability, if the debtor, through his actions, brought the company to bankruptcy; compensation for damage caused to the property of other people, fines received as a result of an administrative or criminal offense.
Bankruptcy of individuals persons in Chelyabinsk
We will write off loan debt through bankruptcy proceedings. Writing off loans on loans, credit cards, writing off loans from microfinance organizations. This should include debts for utilities and debts on taxes and fines. As a result of bankruptcy, an individual will be completely released from all obligations to creditors; it is worth noting that this procedure comes into force only after all possible (provided for by law) measures to eliminate the debt of an individual have been exhausted. faces in Chelyabinsk.
We invite you to read: Where to start bankruptcy of an individual{q}
Since the bankruptcy procedure is carried out on a specific individual, whose financial situation is so difficult, it does not allow him to fully pay off all debts, therefore a number of obligations are imposed on the debtor. You cannot become a carefree resident of Chelyabinsk after completing the bankruptcy procedure.
Main stages and procedures for bankruptcy of an individual in an arbitration court
Article 213.2 of Law No. 127-FZ specifies the scheme for conducting the bankruptcy process for citizens:
Stage 1. After the court has accepted an application for recognition of financial insolvency, it will consider the validity of the claims within 15 days; in complex situations that require additional verification of information, the period can be up to 3 months.
Stage 2. If the debtor did not submit the application himself and did not choose a financial manager, the court itself proposes its candidacy from among the participants registered in a special self-regulatory organization. The requirements for such a person are presented in Article 45 of Law No. 127-FZ.
Stage 3. A debt restructuring procedure is underway. It allows the debtor to pay off obligations on his own by paying fixed amounts to creditors every month. According to the requirements specified in Article 213.3 of Law No. 127-FZ, restructuring is permitted in relation to a person: having a permanent stable income; not brought to administrative or criminal liability for crimes in the economic sphere; not being a defendant in bankruptcy cases within the next 5 years; not having financial obligations for which a repayment schedule has already been drawn up over the next 8 years.
Would you like to write off all your debts?
The total restructuring period cannot exceed 3 years. Article 213.21 of Law No. 127-FZ states that during this period changes may be made to the plan when they are proposed by creditors. If the changes were proposed by the debtor, then they must be approved by arbitration, after which copies of the amended plan are sent to all creditors. After the expiration of the period specified in the document, the financial manager submits a report to the court in which he prescribes the fulfillment of the terms of the restructuring. If the debt repayment schedule is violated, creditors turn to arbitration, and the last stage of the bankruptcy process comes.
If the debtor meets all these requirements, the financial manager draws up a plan according to which the debts will be repaid. The document must indicate the amount of debt owed to each of the creditors, the terms and conditions for the return of funds. This plan is signed by all participants in the proceedings, and it is submitted to arbitration for approval.
Stage 4. The court declares the debtor insolvent, his property is put up for sale, and the proceeds are used to pay off the debts. Property necessary for the debtor to run a household and lead a normal life is not accepted for sale. Also, the only apartment in which the debtor lives is not subject to sale.
Would you like to write off all your debts?
A free consultation with our specialists will allow you to compare risks and take the first steps towards bankruptcy.
Send a request
No later than a month after the description and assessment of the debtor’s property, the financial manager submits to the arbitration court a regulation on the process of selling the property, indicating the terms, conditions, procedure and starting price of things, equipment and real estate. This provision is approved by the court, its form and content must comply with Articles 110-112, 139 of Law No. 127-FZ. Upon approval of the document, a determination is issued, which participants in the bankruptcy procedure can appeal. If the property is located outside the Russian Federation, another determination is drawn up, which is executed in accordance with the legislation of the country in whose territory such property is located, or the terms of international treaties between this state and Russia are applied.
Expert opinion
Dmitry Tomilin
Experience more than 8 years.
Free consultation
The legislation establishes that a bankrupt’s property is sold at public auction, but the meeting of creditors has the right to choose a different procedure for sale. Luxury items whose value exceeds 100 thousand rubles are required to be put up for public auction.
Judicial practice of considering bankruptcy cases in the Chelyabinsk region
Leaving applications without progress
The practice of considering applications by the Chelyabinsk Regional Court has shown that judges leave applications without progress on the basis of Articles 125 and 126 of the Arbitration Procedure Code of the Russian Federation in the following cases:
- failure to deposit funds with the court to pay remuneration to the financial manager or failure to submit to the court evidence of such a deposit;
- failure to submit a document confirming the payment of the state duty or the right to receive a benefit in the payment of the state duty, or a request for a deferment, installment plan, or a reduction in the amount of the state duty.
- failure to provide a copy of the applicant-citizen’s passport reflecting his location (place of registration);
- Failure to provide documents confirming that the debtor has property sufficient to pay the costs of the bankruptcy case. Justifying the refusal of loans under this circumstance, he refers to the Resolution of the Plenum of the Supreme Court of the Russian Federation dated October 13, 2015 N 45 “On some issues related to the implementation of procedures applied in cases of insolvency (bankruptcy) of citizens,” according to paragraph 19 of which if the debtor applies with an application for declaring him bankrupt, he is obliged, in addition to depositing funds with the arbitration court, to pay remuneration to the financial manager in an amount equal to the fixed amount of remuneration of the financial manager for one bankruptcy procedure (paragraph two of paragraph 4 of Article 213.4 of the Bankruptcy Law), in relation to article 213.4 of the Law, attach to the application evidence of the existence of property sufficient to pay the costs of the bankruptcy case. If this evidence is not provided, the debtor’s application is subject to abandonment on the basis of Article 44 of the Bankruptcy Law, with subsequent return if they are not submitted within the prescribed period.
In addition, the courts leave without progress the applications of debtors if they fail to submit to the court the required documents, the submission of which is provided for by the Bankruptcy Law.
The full list of documents can be found in the article at the link.
Grounds for returning bankruptcy applications for individuals
If, within the established period, the applicant does not eliminate the reasons why the application was left without progress, such an application must be returned to the applicant.
If the state duty is not paid and a petition is sent to the court for a deferment or reduction of the amount of the duty in accordance with the requirements of the Tax Code of the Russian Federation, the only basis for granting a deferment or installment plan is the unsatisfactory financial situation of the applicant, which does not allow him to pay the state duty in the established amount when applying to the arbitration court. Therefore, the applicant, when applying for a deferment in the payment of the state fee, is obliged to document the inability to pay the state fee.
The procedure for granting a deferment or installment plan for the state duty, reducing its size is explained in paragraph 4 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation No. 6 dated March 20, 1997, according to which the petition must provide appropriate justifications with the attachment of documents indicating that the property status of the interested party party does not allow it to pay the state fee in the established amount when filing a statement of claim (application), appeal or cassation complaint.
When filing an application for bankruptcy by the debtor himself, such documents may include information from the Employment Center that the applicant is registered as unemployed, documents on the presence of dependents, a certificate from the place of residence, as well as other documents that could indicate a serious situation. the applicant's financial status.
In the absence of such documents, the application will be denied and the application returned.
Practice of considering bankruptcy cases in the Chelyabinsk region
The practice of bankruptcy of individuals in the region has shown that since the introduction of the law, citizens of the region who have debts to banks are actively taking advantage of the opportunity presented and filing appropriate applications in court.
As a rule, debtors on their own initiative are citizens who do not have real estate and also do not have a permanent place of work.
Thus, the decision of the Arbitration Court of the Chelyabinsk Region dated November 17, 2015 No. A-76-24704/2015 Rastorgueva D.A. declared bankrupt and a procedure for the sale of property was introduced in relation to her. According to the court decision, the debtor had a debt to creditors in the amount of more than 14 million rubles. The applicant indicated only receiving child support as a source of income. The debtor owns only a car, which may be subject to sale of the property.
Applications for recognition of bankruptcy at the initiative of creditors are filed if the debtor owns any property that can be sold and receive income to cover the debt.
When filing bankruptcy applications at the initiative of individuals, credit institutions acted as:
Joint Stock Bank "GPB-Ipoteka"
- OJSC "Sberbank of Russia"
- OJSC "MTS Bank"
- JSC "Bank VTB-24"
- OJSC Tinkoff Bank
- Home Credit Bank
What consequences await the debtor after bankruptcy?
In accordance with Article 213.30 of Law No. 127-FZ, the rights of a debtor in bankruptcy of individuals include several points:
Useful articles
Law on bankruptcy of individuals No. 127-FZ
Financial manager in bankruptcy proceedings of citizens
Application for bankruptcy of an individual
- You cannot apply for loans without first notifying the financial institution of your bankruptcy status.
- For 5 years, the debtor cannot apply for bankruptcy proceedings again.
- For 3 years, the debtor does not have the right to hold the position of top manager in organizations. He is prohibited from holding managerial positions in insurance companies and investment funds for 5 years, and from banks and other credit institutions for 10 years.
How much does bankruptcy of an individual cost?
The price for the bankruptcy procedure is divided into several components:
- Pre-trial and legal costs. Before submitting an application to arbitration, a state fee of 300 rubles and postage costs of 100 rubles are paid. Legal costs are considered to be: publication in the Komersant newspaper - 11,000 rubles, several publications in the Unified Federal Register of Bankruptcy Information - 430 rubles, other expenses of the financial manager in conducting the case - up to 3,000 rubles.
- The financial manager's remuneration is 25,000 rubles deposited with the arbitration court. If debt restructuring is introduced first, and then the sale of property, the amount will be 50,000 rubles.
- Price for legal assistance. This includes: assistance in collecting documents, representation in court, consultations, resolving controversial issues in arbitration and with creditors. On average, the cost of such work starts from 50,000 rubles.
In total, we get an amount starting from 89,400 rubles. But it may differ in each law firm; much depends on the experience of the specialists, the region of residence of the debtor and the pricing policy of the firm.
How does the bankruptcy procedure work?
- It is necessary to prepare documents with which to confirm, firstly, the presence of debts and your insolvency;
- Pay the state fee;
- Submission of documents and applications to the arbitration court;
- At the next stage, you need to deposit money with the court to pay for the services of the manager;
- Draw up a restructuring plan;
- Pay off debts;
- When the stage of selling property comes, then, of course, you will have to wait for the complete sale of assets;
- It happens that the parties enter into a settlement agreement.
If you have not heard about the manager, then this is a person who identifies the debtor’s property and takes all measures to preserve it, he also maintains a register of creditors, the manager also holds meetings of creditors and takes an active part in the arbitration process. Not a single bankruptcy procedure can be completed without a financial manager, and the services of the manager are paid for by the debtor.
We invite you to read: Concluding a supply agreement with an individual
The time it takes to resolve a bankruptcy case will depend on the professionalism of the lawyer you hire. You can go through the entire procedure yourself, but we do not recommend doing so, not because we want to impose our services on you, but because this is not an easy matter and it definitely requires the experience and knowledge that we have, because we know about all the underwater stones, we know how to go all the way from beginning to end, avoiding all the mistakes that a person without experience is bound to encounter.
Also, several articles were introduced in the Criminal Code of the Russian Federation, under which criminal liability arises for unlawful actions in bankruptcy, such as deliberate bankruptcy and fictitious bankruptcy, and the liability is very significant:
- For fictitious bankruptcy, the maximum penalty is 6 years of imprisonment and a fine of 80,000 rubles or six months’ earnings of the convicted person.
Of course, if you solve bankruptcy problems yourself, then you will not have to pay for a lawyer, but you can only guess what the outcome of the case will be, besides, there will always be mistakes, as mentioned above, there is a risk of criminal liability and if If you have never been to court, then let’s be honest, your legal protection in this case is zero, so if you are going to conduct your own bankruptcy case, then our advice is to first study the legislation on bankruptcy of individuals and other related legal acts.
But we invite you to a consultation with us at our office, where we will assess your situation, study the necessary documents, conduct a thorough legal analysis and certainly inform you about the prospects of the case.
If we undertake to help you, then we know our strengths and adequately assess the situation and accordingly know what the result will be (this is experience) and can indicate to you the prospects of the matter and give guarantees, because if we take up the matter, we will definitely bring it to the end.
If you find yourself in a difficult situation and you are shackled by debts, then call us, we will definitely find a solution to your problem and help you get rid of debts through bankruptcy.
We recommend starting the bankruptcy procedure for an individual by clarifying the conditions for declaring a person bankrupt, calculating the cost of the service and familiarizing yourself with the full list of necessary documentation for conducting the procedure by calling in Chelyabinsk: 7 (951) 456-34-21. We will be happy to answer all your questions and give real recommendations regarding your situation.
