Bankruptcy of citizens. Law on bankruptcy of citizens: particular application

The law on bankruptcy of citizens began to be developed in 2012, but it was adopted not so long ago - in 2015. Not all debtors on loans turned out to be solvent, so for the majority of Russian residents the introduction of this law was a welcome event. Is it worth initiating a bankruptcy procedure? What subtleties need to know the debtor?

Why was the law passed?

Every year, Russia's debts on loans grow. According to the information of the Central Bank, as of January 1 last year, the total debt of citizens amounted to more than 600 billion rubles, and in 2014 it was one third less. The law is designed to positively affect the consumer lending. Interest rates on loans are growing every year, because they contain the risks of payment and delinquencies. The same situation has developed with the payment of utilities. FZ applies to all types of arrears.

Law on bankruptcy of citizens: essence, main provisions

On July 1, 2015, the Federal Law with the number 476 came into force. According to this Federal Law, amendments to the existing Law on bankruptcy (or insolvency) and a number of other acts regulating procedures for the rehabilitation of debtor citizens.

From this moment on, citizens whose debts to creditors exceed 500,000 rubles and who are overdue for more than 90 days can apply to the court for the purpose of declaring them bankrupt. In this case, the procedure for bankruptcy of a citizen may be an initiative of a credit organization or a tax service. According to Article 214 of this Federal Law, the bankruptcy procedure for individual entrepreneurs is identical to that applied to citizens.

Article 213, paragraph 1, states that information on procedures is recorded in the Federal Register and can not be published in official sources. Information may be disclosed for the recognition of individuals as bankrupt, for the launch of a debt restructuring process and for the sale of their property.

A feature of the law is a link to the official place of registration of a natural person.

Signs of bankruptcy of a citizen: insolvency criteria

1. The individual has completely stopped performing monetary obligations to credit institutions.
2. A citizen does not repay mandatory payments, which have deadlines for execution.
3. If more than 30 days have passed since the execution of the debt obligations, and their total size is more than 10% of the total amount of money payable.
4. The value of a citizen's property is substantially lower than the amount of debt.
5. If a citizen has a decree on the completion of the enforcement proceedings, since he has no property that can be recovered.

Who can declare bankruptcy?

Not every citizen of the Russian Federation can declare himself bankrupt. According to the new law, this can be done in three cases:

1. When the amount of debt exceeded 500,000 rubles.
2. When the debtor can prove that he can not pay money on the obligations imposed on him.
3. If the debtor proves that he tried to pay off his creditors and enter into a contract for the restructuring of monetary obligations.

Insolvency (bankruptcy) of a citizen of the Russian Federation can not be declared when the amount of monthly payments, according to the agreement with the creditor, exceeds the real income of the person. In this case, the court can only recognize the citizen as insolvent, but the debt for this reason will not be written off.

Risks for the debtor

The commencement of the bankruptcy procedure of the debtor-citizen assumes that he does not have the money to pay off current debts. Accordingly, the bailiffs will be forced to sell his property. All property transactions relating to transfer to his relatives will be canceled. A gift agreement may be terminated . If the property is in joint ownership, part of the property belonging to the debtor is sold. If the bankrupt is an IP, all licenses and a certificate of state registration of the entrepreneur are void.

Execution can be imposed not on all the property of the debtor. Confiscation is not subject to immovable property, if it is the only place for the debtor's residence. The same rule applies to real estate, which was acquired with the use of credit funds (if it is not the subject of this dispute). Confiscation does not apply to clothes, shoes, home furnishings, prizes, state awards.

Bankruptcy Procedure

Bankruptcy of citizens - a multi-stage procedure, the launch of which is possible only upon the decision of the arbitration court. To do this, the court must file an application. If the application is considered justified, then the following measures are taken:

• Debt restructuring.
• Realization of movable and immovable property of the debtor.
• Settlement agreement (the parties can reach a compromise, and the case is terminated).

The procedure for selling property is an extreme measure. It is applied only in the case when the debt restructuring plan is not performed by an individual. Property that was available to the debtor at the time of the court decision or acquired after it, is sold at auction.

Debt restructuring plan

Bankruptcy of citizens is a measure, the first stage of which is debt restructuring. Its goal is an additional opportunity for a citizen to pay off debts with creditors, using all possible sources of income. By decision of the court, a plan is drawn up, which specifies the time and amount, and the procedure for paying off debts. The development of this plan is the central link in the bankruptcy case. The plan has a maximum implementation period of 3 years. However, it can be extended by court order.

According to the law, debt restructuring can be applied to an individual if:

• A citizen has a source of income.
• There is no criminal record in the sphere of economic crimes (or the period of prosecution has expired).
• Bankruptcy of a citizen-debtor was not recognized for 5 years.
• The restructuring plan was not developed or approved for 8 years before the launch of this procedure.

In the amount of debt under the plan, interest is also included on the basis of the creditor's claims. At the same time, the amount of interest corresponds to the refinancing rate of the Central Bank.

How the plan is executed

As the debt is paid under the approved plan, the debtor has the right to make proposals for making changes to it. The financial manager should be informed about this. If the property position of the debtor improves, the creditors petition the arbitration court, where the plan is amended.

When the implementation period of the plan comes to an end, the financial manager prepares a report, which is subsequently sent to the court and the credit organization. If the claims of the creditor are not met within the established time limits, then he goes to court.

In this case, the court can take one of two decisions:

• Complete the restructuring procedure.
• Recognize the bankruptcy of citizens.

Sale of property

The reasons for the recognition of bankruptcy may be several:

• Overdue debt restructuring plan.
• The plan was not approved by credit institutions.
• The cancellation of restructuring by a court decision.
• The resumption of judicial proceedings on bankruptcy.

The bankruptcy of citizens (individuals) implies the sale of property of debtors. The court may also impose a restriction on travel abroad. The restriction is lifted only at the end of the trial. It can be canceled ahead of schedule only in the case of a citizen's application and in consultation with creditors.

When the debtor is declared bankrupt, all property is transferred to the financial manager. All transactions with property without his participation are canceled. This applies to cash in bank accounts, and the performance of property obligations by third parties.

Evaluation work is conducted under the guidance of the financial manager. Appraisers can be attracted by the decision of creditors from their means. Moreover, the assessment itself can be challenged in court.

If the sale of property has not occurred, and credit organizations refused to accept it as a debt, the citizen again passes the right to dispose of it. At the same time creditors' claims are recognized as satisfied.

Settlement agreement

This procedure is provided for by this law. On its basis, the court proceedings are terminated. The decision is made at a meeting of creditors, and the agreement is already in court.

After the conclusion of the agreement, the debt restructuring plan is canceled, the ban on satisfying the creditor's claims is lifted. The citizen proceeds to repay the debt. If the parties violate the terms of the agreement, the bankruptcy case is restarted.

Cons for the debtor

• Bankruptcy of Russian citizens is a procedure that requires material costs (payment of court costs and services of the manager).
• All accounts, including joint ones, are frozen.
• The property of the debtor is arrested.
• In a three-year period after the recognition of bankruptcy, the debtor can not become the founder of the legal entity.
• A ban on travel abroad is imposed.
• In a five-year period after the recognition of bankruptcy, a citizen will not be able to take out loans.
• If without the knowledge of the financial manager there is a purchase or sale of property, the debtor faces a fine of 4,000 to 5,000 rubles.
• Within a year after the court decision, you can not engage in business.

Pros for the debtor

• When the debt exceeds the value of the property, the residual amount is written off from the citizen, since he does not have the means to pay it.
• When the debtor does not own any other property other than his apartment where he lives.
• During the trial, fines and penalties are not charged.
• Removal of excessive financial responsibility.

Consequences for creditors

For credit institutions, the bankruptcy procedure allows you to recover the entire amount of debt, as well as to participate in the distribution of funds received from the sale of property.

Fictitious bankruptcy: consequences for the debtor

For fictitious bankruptcy of citizens, that is, for false information about their solvency, the law introduces administrative responsibility. The commission of this offense is fraught with an administrative fine, the size of which ranges from 1000 to 3000 rubles.

Administrative penalty is provided for the deliberate actions of the debtor, which entailed loss of solvency and inability to pay debts to creditors.

Giving false information about property, rights to it, monetary obligations, the amount of debt and other information threatens a citizen with a fine of 4,000 to 5,000 rubles. For individuals, the fine for illegal obstruction of the activities of the financial manager appointed by the court is up to 3000 rubles.

When attempting to transfer rights to movable and immovable property, the bankrupt person faces imprisonment for up to 6 years.

Subtleties

It is desirable for the debtor to know the features of the bankruptcy of a citizen. The law is imperfect and has many controversial details.

The minimum amount of debt owed to creditors can be contested. At the time of analyzing the solvency and welfare of the debtor, the latter may transfer the rights to use the property. For entrepreneurs, the impossibility of borrowing money can be a kind of prohibition to carry out their activities. However, the situation is reparable, since there are enterprises that provide finance after these procedures.

Getting a bankrupt status gives little advantage to citizens, although it provides additional opportunities. The procedure itself takes a long time. The law can improve the situation of those who owe large sums of money and do not have the opportunity to repay their debts. Bankruptcy does not always become a salvation for the debtor.