Simplified bankruptcy procedure for citizens. Restrictions set. Necessary requirements for bankruptcy.
September 1, 2021 marks exactly one year since the entry into force of the rule on the simplified bankruptcy procedure for citizens. The procedure has become absolutely free and is carried out through the MFC, now citizens are required to have a minimum of effort to officially declare them insolvent and write off debts, however, simplified out-of-court bankruptcy has not become widespread.
Experts argue that the reason is in the established restrictions. In addition, the legislator formulated the rules in a rather complicated legal language, and most debtors see no point in understanding these formalities and legal nuances. During the year, 12,300,000 applications were submitted, satisfied as of 09/01/2021. only 2,400,000 (but a part is under consideration, because the procedure lasts six months). And yet, such a percentage shows that applicants face documentation problems and a lack of understanding of legal norms.
In fact, the procedure is not only free, but also quite simple, a citizen must meet only two requirements:
- have a debt of no more than 500,000 rubles;
- have confirmation of the lack of property and financial capacity to repay the debt. As evidence, only decisions of bailiffs on the completion of enforcement proceedings due to the lack of opportunities to repay the debt are accepted. That is, it is assumed that the bailiffs have already checked the financial situation of the debtor and established the absence of property.
The problem is that many enforcement proceedings, if any, have been in production for years, enforcement actions on them are carried out slowly, with violation of deadlines. But this situation can be corrected by active work with the FSSP, the debtor, along with the claimant, has the right to appeal all actions and inactions of bailiffs.
Indeed, the financial threshold for entering the procedure is quite low. But the legislator needs to take into account the interests of creditors and maintain a balance of interests. Currently, the state is trying to expand the circle of potential participants in the procedure. It is proposed to introduce the possibility of conducting the procedure through the State Services and increase the maximum debt for the use of out-of-court bankruptcy from 500,000 rubles to 1,000,000 rubles. But the last proposal is unlikely to be accepted because of the opposition of the bankers.
Out-of-court bankruptcy provides ample opportunity for debt relief and works if the requirements are met.
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