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

The law on bankruptcy of citizens began to be developedback in 2012, but it was adopted not so long ago - in 2015. Not all debtors on loans turned out to be solvent, so for most residents of Russia, 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 the debts of Russians grow on loans. According to 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 grow every year, as 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 came into effectnumber 476. According to this Federal Law, the existing Law on bankruptcy (or insolvency) and a number of other acts have been amended, regulating procedures for the rehabilitation of debtor citizens.

From this moment on, citizens whose debts tocreditors exceed 500 000 rubles and those who have 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Article 213, paragraph 1, states thatInformation on procedures is recorded in the Federal Register and can not be published in official sources.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 the link to the official place of registration of a natural person.

Signs of bankruptcy of a citizen: the criteria for insolvency

1. The natural person completely stopped executing monetary obligations to credit institutions.
2. The citizen does not repay the mandatory payments, which have deadlines for execution.
3. If more than 30 days have elapsed since the execution of the debt, and their total size is more than 10% of the total amount of money payable.
4. The value of the property of a citizen is much 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 a 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 Russian citizen is notcan 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

Beginning of bankruptcy procedure of debtor-citizensuggests that he does not have the money to pay off current debts. In accordance with this, 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 possession, 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 canceled.

The recovery can not be imposed on all propertydebtor. 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.

Procedure for bankruptcy proceedings

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 the movable and immovable property of the debtor.
• An amicable settlement (the parties can reach a compromise, and the case is terminated).

The procedure for selling property is an extreme measure. It is used only if 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 whichis 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. Thus the size of percent corresponds to the refinancing rate of the Central Bank.

How the plan is executed

As the debt is settled by the approvedthe debtor has the right to make proposals on making changes to it. The financial manager must be informed about this. If the debtor's property situation improves, the creditors petition the arbitration court, where the plan is amended.

When the term of the plan is coming to an end,the financial manager prepares a report, which is subsequently sent to the court and the credit organization. If the creditor's claims are not met on time, 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.
• Resumption of judicial proceedings on bankruptcy.

Bankruptcy of citizens (individuals)implies the sale of property of debtors. A 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 propertyis 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, butcredit organizations refused to accept it as 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 the meeting of creditors, and the agreement is already in court.

After the conclusion of the agreement, thedebt restructuring 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, except his apartment, where he lives.
• During the trial, fines and penalties are not assessed.
• Removal of excessive financial responsibility.

Consequences for creditors

For credit institutions, the bankruptcy procedure allows you to collect 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 forfalse 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.

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

Give false information about property, rights tohim, 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 dispute may be subject to a minimum sizedebt to creditors. 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 bankrupt status gives few advantagesfor citizens, although it provides additional opportunities. The procedure itself takes a long time. The law can improve the situation of those individuals who owe large sums of money and are unable to repay their debts. Bankruptcy does not always become a salvation for the debtor.