Bankruptcy of individuals and individual entrepreneurs - step-by-step instructions for individuals and individual entrepreneurs + possible consequences for the debtor

Hello, dear readers of the RichPro.ru business magazine! Today we’ll talk about the topic of bankruptcy of individuals (IP), what consequences for the debtor are provided by law, what documents and actions are necessary for going through the procedure, and so on.

From this article you will learn:

• What is the bankruptcy of individuals and individual entrepreneurs in the Russian Federation;
• How is the bankruptcy procedure of individuals;
• Necessary conditions and documents;
• What are the consequences for the debtor provided by law.

And now, first things first.

About the features of bankruptcy of individuals and individual entrepreneurs, the consequences for debtors, as well as step-by-step instructions on how to go through bankruptcy, read on

1. Bankruptcy of an individual in Russia: definition and history of occurrence + realities of the status of “bankrupt”

Consider in more detail the history of the status and the regulatory framework of bankruptcy in the Russian Federation.

1.1. Brief definition

Under the bankruptcy of an individual most often they understand the financial insolvency of a citizen, that is, the inability to repay available debts on obligatory payments and claims of creditors using their own funds.

In other words, bankrupt - this is insolvent citizen (including individual entrepreneur), whose debt obligations exceed existing assets (cash, real estate, valuables).

Not always the presence of debts from an individual necessarily indicates its financial insolvency. In more detail about what bankruptcy is, we wrote in a separate article in the journal.

The main features bankruptcies of individuals are a significant excess of debt over available cash, and the lack of real prospects to correct the difficult financial situation in the near future.

1.2. History of occurrence

A few decades ago, the concept of “bankruptcy” was not familiar to the Russian economy. The legislative framework of the institution of bankruptcy did not exist due to its absence in Russia

The sharp growth and development of the Russian economy, the formation and further development of the credit system paved the way for the emergence of organizations in Russia (private and state), in which there were signs of bankruptcy.

Many enterprises could not adapt to the changed economic realities, and the newly created ones have not yet learned how to work in a market economy.

In 1992 The first bankruptcy regulation was passed. He dealt with issues of liquidation of legal entities in the process of bankruptcy.

Bankruptcy laws have changed several times over the course of a decade. Bankruptcy Act in force today 2002 year.

With the development of the credit system, the existing bankruptcy regulatory framework in the Russian Federation ceased to fully reflect the needs of modern society, and needed serious changes.

The legislative body, together with the government of the Russian Federation, has developed a new legislative act regulating the possibility of declaring a natural person bankrupt under certain conditions. The specified normative act was adopted at the end of 2015.

1.3. The regulatory framework of bankruptcy in the Russian Federation + the law on the bankruptcy of individuals

Federal Law (federal law) on the bankruptcy of individuals - you can download the latest edition from the links below

With the rapid development of the credit system in Russia, the need has arisen for the creation of a special law that will regulate the issues of bankruptcy of citizens and individual entrepreneurs. In the Russian Federation, before the adoption of this federal law, only legal entities could be declared bankrupt.

The Bankruptcy Regulatory Act for Individuals entered into force in October 2015.

The need to adopt a federal law arose for several reasons:

• a huge amount of loans issued to the population;

• at the initial stage of the establishment of the credit system in the Russian Federation, citizens were credited by banks and other credit organizations for rather large amounts, sometimes without observing complex formalities and additional checks. Anyone could get a loan;

• citizens who are not accustomed to such opportunities, received loans (consumer, targeted, mortgage) for any needs, without thinking about their financial capabilities to pay them later;

• instability of the economic situation in Russia in recent decades, crises and defaults, massive unemployment.

As a result, there was a situation when half of the able-bodied citizens of Russia have debts to creditors. Moreover, due to the lack of the ability to pay loans on time, individuals stop paying at all. Debt obligations of the population in the Russian Federation have reached enormous proportions, and the number of people unable to pay off their debts continues to increase.

The state tried to solve the problem of insolvency of the population by resolving the issues of bankruptcy of an individual in a special federal law, the norms of which allow initiating bankruptcy of a private individual and individual entrepreneur.

Legislation governing the bankruptcy of individuals and entrepreneurs:

Download the Bankruptcy Law of Individuals (from 29.06.2015)

Download the Law on Bankruptcy of Legal Entities (as amended by 13.07.2015)

Important! It should be noted that a private person, having become bankrupt, does not relieve himself of the obligation to fulfill his debt obligations. He is provided with alternative ways to solve financial problems.

1.4. Cons of the law on insolvency of citizens and individual entrepreneurs

The main purpose of the adoption of the law "On Bankruptcy of Individuals" was to assist individuals in solving accumulated financial problems in the legal field, that is, in a legal way.

However, although in theory the legislator provided individuals with the opportunity to resolve their financial insolvency issues in a civilized way, but in practice - only a small part of individuals can take advantage of this innovation.

The main reason why the insolvency law of individuals does not work in full force, - inconsistency of the requirements of the regulatory act with the realities of modern Russian society and the economic situation in the country, eg:

• Firstly, the law establishes the minimum limit of the amount of debts of an individual, the achievement of which allows you to start the bankruptcy process. She makes up 500 000 rubles.

However, for most Russian citizens the amount of debt obligations over 100 000 rubles - an insoluble task, and only a few accumulate debts in the amount of half a million rubles.

• Secondly, such a high bar of the lower threshold, the achievement of which gives the right to an individual to open a case of insolvency, looks rather strange, given that for organizations this amount is equal to 300 000 rubles.

1.5. Problematic issues of the new law on bankruptcy of individuals

Problem 1. The most common category of issues considered by arbitration courts is the declaration of bankruptcy (of an organization, individual, individual entrepreneur), since the status of a bankrupt is acquired only as a result of an arbitration court decision that has entered into legal force.

The entry into force of the Law on Bankruptcy of Individuals showed that the judiciary was not prepared for the increased workload due to the large flow of applications from citizens who wish to become bankrupt.

The high load of arbitration courts does not allow a proper level to consider cases of this category, paying attention to the details of a particular case, a large number of such cases are considered in violation of the terms.

Problem 2 Since the new law on the insolvency of individuals and private entrepreneurs was adopted and entered into legal force a year ago, the courts have not developed a stable judicial practice in such cases.

Problem 3. Bankruptcy - a rather complicated, long-term and voluminous procedure, so individuals try to resort to the help of specialists with extensive practical experience and sufficient knowledge, who are versed in the intricacies and nuances of bankruptcy issues. However, individuals who are in a state of bankruptcy cannot pay even a small fee for the services of such a manager.

Should be notedthat today the law on bankruptcy of individuals applies to a very limited category of citizens, and does not fulfill its full function.

For these reasons private individualsand moreover judicial authorities are very skeptical, since the presence of significant shortcomings in the law on insolvency of citizens does not allow full use of the opportunities that were envisaged by lawmakers.

If the contradictions in the law under consideration are eliminated, an effective institution of the bankruptcy of individuals can earn in Russia.

Who initiates the bankruptcy of a citizen and individual entrepreneur

2. Who can start a bankruptcy procedure for a citizen and an individual entrepreneur

A natural person or individual entrepreneur can be declared bankrupt only in court. To start the procedure for declaring an individual or individual insolvent, it is necessary to file an application with the judicial authority.

2.1. Who initiates the bankruptcy of an individual

Russian law established that a citizen himself can initiate the bankruptcy procedure of an individual by submitting an application for bankruptcy.

Mandatory conditions for an individual to file an insolvency application:

• availability of financial liabilities over 500 000 rubles;
• lack of payments on existing debt more than 3 months.

Important: an individual’s application for declaring it bankrupt cannot be accepted if the amount of financial obligations includes arrears in the payment of alimony for minor children or various types of compensation for damage due to loss of health.

Bankruptcy of a citizen can also be initiated by his creditors.

The main initiators of the bankruptcy procedure of an individual (citizen)

These may include the following entities:

• tax authorities;
• banks and other credit (borrowed) institutions;
• municipal authorities;
• persons authorized by the creditor.

A statement of claim for declaring a natural person bankrupt may be filed by one creditor or a group claiming to pay off the resulting debt.

Accordingly, the application for declaring a citizen bankrupt may be Several different requirements are indicated:

• Bank loans
• debt on alimony;
• financial obligations from harm to health.

2.2. Who initiates IP bankruptcy proceedings

There is no particular difference between persons who initiate the bankruptcy procedure of a citizen and individual entrepreneurs. But the bankruptcy of legal entities has significant differences, both in the documents and in the stages of the procedure.

Thus, they can file an application for declaring IP bankrupt:

• businessman;
• individual lenders;
• tax and other government agencies.

Remember that such creditors, whose claims are based on the debt of the individual entrepreneur, not related to his entrepreneurial activity, may also file a petition for bankruptcy.

3. What is necessary for bankruptcy of an individual or individual entrepreneur

The presence of loans and other debts of a citizen does not mean that he can be declared bankrupt. Only a natural person who meets certain conditions (features) established by the Russian bankruptcy law can begin bankruptcy proceedings, and subsequently receive official bankruptcy status.

3.1. Signs of bankruptcy of an individual

Any citizen who has the following signs of bankruptcy can begin the process of declaring himself financially insolvent:

• lack of financial assets (money, real estate and other valuable property) capable of repaying existing debt;
• the amount of debt is so great that the available income or the sale of existing property, it will not be blocked. Before going to court, in most cases, the movable and immovable property of the debtor is sold;
• total debt more than 500 000 rubles;
• delay in credit payments no less than 3 months;
• the difficult financial situation cannot be corrected through debt restructuring; there is no prospect of resolving the issue of paying off existing debt;
• the person has no criminal record for economic crimes.

Important! An individual can file for bankruptcy earlier than the occurrence of the indicated facts, if he provides evidence that nothing will change in the near future, and there are no prospects for fulfilling his credit and other financial obligations to creditors.

3.2. Signs and features of bankruptcy of individual entrepreneurs

An individual entrepreneur is a citizen (individual) who owns a business in the status of individual entrepreneur.

In more detail, how to open the IP itself, we wrote in a separate material.

Therefore, in general terms, the signs of an individual bankrupt and an entrepreneur in a state of bankruptcy coincide.

The legislator has identified the following main signs of bankruptcy of an individual entrepreneur:

• all debt of the entrepreneur in total more than 500 000 rubles, and it was established that the minimum amount of debt to one creditor should be 10,000 rubles;
• debts of IP (loans, obligatory payments) far exceed the value available to the entrepreneur, property or other income;
• businessman does not pay the debt more than 3 months.

Important! The difference between bankruptcy of individual entrepreneurs and insolvency of a citizen is that when accounting for the amount of total debt, only that part of the debt obligations that is associated with the entrepreneur’s business is considered.

Step-by-step instructions on how to go through a bankruptcy procedure for an individual and individual entrepreneur, and what is needed for this

4. Bankruptcy of an individual (IP) - the procedure for applying to the arbitration court + step-by-step instructions for obtaining bankruptcy status

An individual may become bankrupt only after the entry into force of a decision of the arbitral tribunal. The court, considering the applications of a citizen or individual entrepreneur, evaluates the financial condition of the applicant and makes a decision on the basis of comprehensively verified evidence.

A court decision for a citizen can be either positive or negative:

• positive decision: the court declares the individual bankrupt and appoints a procedure aimed at finding a solution to the financial predicament of the applicant;

• negative decision: the court refuses to declare the citizen insolvent (non-compliance with the conditions, insufficient evidence).

To obtain bankruptcy status, a citizen must take a number of mandatory actions and go through several stages:

1. Preparatory: filling out an application, collecting the necessary certificates and supporting documents, paying state fees;
2. Initiation of bankruptcy proceedings: filing an application directly with the court - arbitration court;
3. Consideration of the application by the judge (preliminary and unlimited number of main meetings), obtaining a court decision on which the further actions of the debtor depend.

In case of a positive decision, the judge must appoint a manager - a financial specialist who executes the court order. The appointed manager is personally responsible for the financial situation of the individual.

Arbitration Court Procedure

Since the consequences of declaring an individual bankrupt are quite serious restrictions, including the financial activities of a person, bankruptcy must be approached in the most serious way.

Bankruptcy begins with the preparation of the necessary package of documents and available evidence. This implies that the applicant tidies up all financial matters, analyzes, collects all information containing facts that may indicate his insolvency.

Very important competently and as fully as possible fill out an application for submission to the arbitration court.

It should describe in detail all the facts that led the individual or individual to a difficult financial situation, and indicate all amounts of debt indicating creditors.

Having collected as many facts (documents) as possible, debtor is more likely to provethat initiating bankruptcy proceedings is forced measure.

The court needs to check the statement of the debtor for availability in its action fraud in order to avoid the performance of debt obligations.

Bankruptcy of a citizen or entrepreneur - This is a long-term and very annoying (for the applicant) procedure. Consideration of a case in court takes quite a long time. This is justified, since the court must carefully and thoroughly evaluate all the evidence and facts presented.

In addition, all financial transactions and contracts with the participation of the debtor are checked, the facts of the transfer of property to relatives, members of the applicant's family, and other third parties are considered.

Judicial practice that has developed in such cases shows that bankruptcy proceedings of citizens and individuals may last more than a year. This is due to the fact that the courts (arbitration courts) are territorially located in central cities.

Many applicants have difficulty attending trials due to the remoteness of the arbitral tribunal from their place of residence, which is why cases are often delayed.

To file for bankruptcy of a private person or individual entrepreneur, the judge appoints a manager who will deal with the financial affairs of the applicant. The financial manager receives remuneration for the performance of his duties.

When making a decision on the appointment of a manager, the court may take into account the difficult financial condition of the citizen and provide him with an installment plan (deferment) of the amount to pay for the manager’s legal services.

So, now the step-by-step instruction itself:

Step number 1. Preparation of documents

The package of documents submitted to the arbitration court when initiating the bankruptcy case of an individual or individual entrepreneur is established by law.

List of necessary documents that an individual or individual entrepreneur must prepare for going to court:

1. Copy of the document (most often, a passport), by which you can identify the applicant.
2. Documents showing availability and size financial debt (loan agreements, loan agreements, receipts).
3. List of personal data of all creditors with the obligatory indication of the amount of requirements. This is a formalized document that must be correctly and fully filled out.
4. Obtained in compliance with all requirements of the law, extract from the USRIP (Unified State Register of Individual Entrepreneurs). Such an extract is issued and certified by the tax authority. The validity of this certificate is short (5 days), therefore it is better to take it at the very end, when the full package will be collected (in order to avoid repeated treatment and payment of the amount of the state fee for issuing the certificate).
5. A document containing all property owned by the debtor. An obligatory assessment of all financial assets of the applicant is attached to the inventory of property.
6. Information on transactions completed before going to court, the total amount of which exceeds 300,000 rubles.
7. Certificate containing the amount of tax paid for 3 years.
8. A document on open bank accounts in the name of the debtor indicating all the amounts that are accumulated on them.
9. Copy of insurance certificate (SNILS).
10. Certificate of recognition of the debtor unemployed - if the debtor has such a status.
11. For IE required bank account statement and its condition.
12. Original and copy of the certificate of marriage or divorce.
13. If the debtor has marriage contractproviding a certified copy is required.
14. Original document confirming payment of state duty.
15. Specialist payment receipt - financial manager. In the absence of funds to pay for services, the applicant must attach a motion for the court to grant a deferment.
16. Documents and certificates confirming applicant disability, state of health, or caring for disabled family members.

An individual entrepreneur provides the court with the same documents, with the difference that he needs supplement a list of information and references that are related to the applicant's business activities.

Step number 2. Appeal to the arbitration court and bankruptcy proceedings

A petition for declaring a citizen bankrupt is a formalized document. Its form is established by law, and it is filled out directly in the office of the arbitration court.

It is allowed to fill out an application in advance, but must submit it citizen personallyor face initiating bankruptcy.

Information to be reflected in the application:

• the name of the court (arbitration court) in which the bankruptcy hearing will be held;
• indicates the amount of debt and information about each debt and the reasons why it was formed;
• information on the applicant's labor activity: place of work and reasons for dismissal (if any);
• information about income other than work;
• a list of property owned by the debtor;
• information about the family and its composition;
• information confirming the dependency of citizens who are on the debtor's maintenance;
• Attached are copies of loan agreements (mortgage, target, consumer) and loan agreements;
• copies of all correspondence with creditors, claims for debt repayment.

Sample bankruptcy petition of an individual (.docx, 17.8 kb.)

It is very important to indicate in the application all available information confirming the fact of bankruptcy.

An application for bankruptcy of an individual - all information specified in the application must be supported by documents, all certificates are certified either by the issuing authorities or by a notary public.

Filling out the application, it must be registered in the office of the subordinate arbitration court. Upon the expiration of the time established by law, the applicant shall be sent the judge’s decision to accept the application for production.

In addition, the definition may indicate what additional documents must be provided, and the deadline for fulfilling such a requirement.

Restrictions on disposal of property during the resolution of a bankruptcy case

Having received the decision to accept the bankruptcy petition, the debtor proceeds to the second stage of the bankruptcy procedure: direct resolution of the case and receipt of a decision of an arbitration court.

During the trial at the request of the individual or IP insolvency, a number of restrictions are imposed on the debtor:

• a ban on financial transactions whose subject is property or cash over 50 000 rubles. However, such transactions may be completed if the appointed manager gives written permission to it;
• any transactions with property owned by the debtor are prohibited (real and movable property, deposits, shares);
• it is forbidden to be a guarantor or arrange loans, mortgage property (including property belonging to the family). Such actions can only be performed with the consent of the administrator;
• the applicant is not allowed to transfer part or all of his property as a share to the authorized capital of various companies and cooperatives, as well as to acquire shares in various organizations and enterprises.

A rather strict restriction that applies to the disposal of the property by the debtor, justified, because it is necessary for a full and comprehensive verification of the information provided by the debtor.

If the applicant violates any of these points during the consideration of the bankruptcy case, the judge may refuse to declare a debtor bankrupt.

Step number 3. Pending court decision

At the stage of waiting for the decision of the arbitrator, the main person is financial managerappointed by the court. The legislation governing the institution of bankruptcy of individuals and entrepreneurs provides for the mandatory participation of this specialist in the bankruptcy of individuals.

The debtor cannot choose a manager at will. This is the prerogative of the court. However the manager can be selected by the judge from the list of specialists of self-regulatory organizations, which will be provided by the debtor.

A number of serious requirements are made to a financial manager appointed by a judge to participate in the bankruptcy of an individual or individual entrepreneur.

The financial manager in case of bankruptcy of individuals and individual entrepreneurs is involved at all stages of an open bankruptcy procedure

In case of non-compliance with the following requirements, such a specialist is suspended:

• he should not be personally interested in the outcome of the resolution of the case;
• pure professional data (lack of comments, and especially penalties);
• admission to the implementation of such activities and the availability of a license.

What are the responsibilities of the financial manager:

• preserves the property of the applicant;
• analyzes the financial position of the debtor;
• finds and establishes signs of bankruptcy of a private person;
• carries out work on the requirements of creditors (including with them personally);
• notifies creditors (banks and other credit organizations) about the conduct of bankruptcy proceedings, property being sold or restructuring of the applicant's debt;
• controls how the debt restructuring plan is being implemented;
• submits all necessary reports on its activities to the debtor's creditors.

An analysis of the functions performed by this specialist shows that the financial manager appointed by the court is involved at all stages of the open bankruptcy procedure.

In relation to the natural person in respect of whom the bankruptcy proceedings have begun, 2 (two) decisions may be made:

• the debtor's application must be rejected if there is insufficient evidence of compliance with the conditions for obtaining bankruptcy status (absence of signs of bankruptcy);
• Satisfaction of the application - in this case, various options are possible, which will be described below.

Judicial practice in case of bankruptcy of individuals (IP) - settlement, restructuring of debts of individuals, sale of property

5. Bankruptcy proceedings of individuals and individual entrepreneurs: judicial practice + comparative table

The options for the procedures appointed by the court in the event of a positive decision are needed to find a solution to the financial problems of the debtor:

1. between the debtor and the creditor (s) is amicable settlementapproved by the court.
2. in the event there is a prospect of equalizing the difficult financial situation, additional income or other financial assets of the debtor may be appointed debt restructuring;
3. extreme option - an individual receives bankrupt status, and his property is sold at auction. The latter case is neither beneficial for the debtor, nor for creditors, therefore the individual is declared bankrupt last, if it is impossible to use the two options listed above.

Each of the prescribed procedures has its own nuances, so we will consider them in more detail.

5.1. The conclusion of a settlement agreement

The conclusion of a mutually beneficial settlement agreement is the most desirable way to resolve the debtor's difficult financial situation.

Concluding a settlement debtor and creditor determine the most acceptable solution for both parties to the dispute.

Such an agreement allows an individual and a creditor to avoid further litigation.

A judge in the first court session necessarily recalls the right of the parties to resolve the matter peacefully.

A settlement is a settlement of a dispute between the parties through mutual concessions:

• the lender makes debt repayment conditions more lenient;
• the debtor undertakes to fulfill the conditions of the new requirements in a timely manner.

Important to rememberthat an amicable agreement is concluded at any stage of the bankruptcy court hearing. An amicable settlement must be drawn up in some form in writing.

Signs that distinguish a settlement from a regular document of similar content:

• agreement is possible only with mutual consent to change the conditions;
• a settlement is considered and approved in court;
• the entry into force comes after the final decision on the case is made to the judge.

In case of doubt, the court may not allow (refuse) conclude a settlement agreement. A refusal may follow if, when assessing and analyzing the financial situation of the debtor, there are reasons to believe that the debtor will not be able to solve his debt problems. Or there are serious suspicions about the "honesty" of the citizen.

Important! The legislation of the Russian Federation stipulates that the debts of a citizen can be repaid by third parties who wish to help a private person solve debt problems. It can be as individuals, various funds or even the state.

What happens after a settlement is reached?

Consequences of this procedure:

• moratorium on repayment of creditor's claims ends;
• the activities of the financial manager are terminated;
• the established debt restructuring plan is canceled;
• the debtor pays credit debt payments in accordance with the new conditions.

The conclusion of a settlement agreement contains undoubted advantages:

• time is saved;
• court costs are reduced, including the payment for manager services;
• the creditor and the debtor agree on mutual concessions, in connection with which there is the prospect of solving the difficult financial situation of the debtor.

Experienced lawyers recommend to citizens in most cases make a settlement, if lenders or financial manager offer such an opportunity.

A feature of the settlement agreement concluded with the IP is the deliverance of an individual entrepreneur from forced liquidation.

The conclusion of a settlement agreement between all creditors and an individual entrepreneur can save you from imminent elimination of IP. This arrangement helps determine the maturity of tax and credit payments within the allotted period.

5.2. Debt Restructuring Plan

Debt restructuring - These are consistent activities that are aimed at solving the difficult financial situation of a private individual. Restructuring involves the preparation of a plan to restore the solvency of the debtor.

The restructuring plan, as a rule, includes the following activities:

• the amount of monthly debt payments is reduced;
• loan term is subject to increase;
• fines are canceled altogether (or for a certain grace period).

The restructuring procedure is appointed by the court only upon confirmation by the debtor of the presence of additional income or other financial assets in an amount sufficient to satisfy the updated claims of creditors.

The restructuring procedure is less favorable than a settlement, however, in comparison with the sale of property, this is undoubtedly more favorable outcome of consideration of a bankrupt citizen. After all, the debtor receives benefits in the form of suspension of fines and penalties accrued earlier.

✏ We also recommend reading our article on credit restructuring - what it is and how it is carried out.

5.3. Bankruptcy recognition: stage of the sale of property of an individual or individual entrepreneur

In cases where the parties do not agree to an amicable agreement and the citizen does not have the means to pay off the existing debt, or the restructuring procedure has not yielded positive results, an individual is declared bankrupt.

In this case, all property of the debtor is sold, that is, sold at bankruptcy bidding, and the amounts received go to repay the claims of creditors.

Property of the debtor to be sold:

• all movable and immovable property. The assets acquired during the marriage are also subject to sale;
• property is primarily sold higher value (liquidity). These are apartments, a car, jewelry, stocks, luxury goods.
• mortgage apartment (pledged by the bank) is also subject to sale, even if it is the debtor's only living space;
• share in the apartment, acquired during the period of marriage, can also be sold in the amount belonging to the debtor.

What property is not sold (sold) in the bankruptcy process:

• real estate, which is the debtor's only living space, is not subject to sale;
• personal belongings of the debtor and essentials (personal hygiene products);
• debtor's everyday items and household appliances (appliances), the cost of which is below 30,000 rubles;
• State awards of particular value
• domestic animals that the debtor contains to satisfy personal needs.

Valuation of all property to be sold, held by a financial managerbut the debtor and creditors can challenge her.

If necessary and insoluble disputes, independent professional appraisers are involved in the assessment.

5.3.1. The procedure for repayment of claims of creditors

The proceeds from the sale of the property of the debtor are used to repay the claims of creditors.

Out of turn (that is, first of all), the amount of debt on child support, damages and managerial services.

The remaining assets are distributed in accordance with the established and approved sequence of creditors.

If unrealized property remains, then it is offered to creditors in kind for repayment of debt. In case of disagreement of creditors to accept unrealized things - they are returned to the citizen recognized as bankrupt.

The order of satisfying the requirements of lenders IP

• First of all, the requirements of creditors are satisfied - individuals whose health has been damaged;
• Secondly, wage arrears are paid off;
• The third turn is the remaining creditors.

There are frequent cases when the amount from the sale of property is not enough to cover all debt (eg, creditors not of the first stage: credit organizations, tax authorities), then the available funds will be divided among all creditors of the queue in proportion to the requirements.

5.3.2. Is it possible to write off debts from the debtor

When the entire amount remaining after the sale of the property of the debtor has been used up, outstanding debt may remain.

Moreover, the number of unpaid bills is often huge. In such situations, the judge may decide to write off the remaining debts.

You can write off the following debt:

• credit debts (including credit cards);
• the amount of loans taken from individuals;
• debt receipts;
• arrears of taxes and fees;
• unpaid utility bills.

Courts have resorted to this opportunity rarely, in the absence of another alternative solution to the financial problem of the debtor.

Comparative table of court-appointed procedures for bankruptcy of individuals:

What are the consequences for the debtor during the bankruptcy proceedings of individuals

6. Bankruptcy of an individual (IP) - possible consequences for the debtor

Declaring yourself bankrupt - This is a very serious step, which entails serious consequences:

1. an individual cannot be repeatedly declared bankrupt within the next 5 years;
2. not a single credit institution will issue a loan or credit to such a person, since when applying for a loan a citizen is obliged to report his insolvency. On the credit history of an individual declared bankrupt, a “fat cross” is put;
3. for 5 years, a bankrupt is forbidden to engage in his own business (register an IP) and to hold senior positions in organizations;
4. a bankrupt may be prohibited from traveling abroad for a period of up to 3 years (unless disputed in court);
5. it will be difficult for a bankrupt to change his job or to get a job again, as employers are very skeptical of citizens with financial problems;

Therefore, many lawyers recommend to citizens very carefully treat the decision to begin bankruptcy proceedings.

On the one hand, bankruptcy is a way to resolve numerous financial problems, and on the other, a large number of subsequent restrictions for a rather long time.

In more detail, how to declare bankruptcy to an individual and individual entrepreneur, we wrote in a special article.

7. Help of professional lawyers in resolving bankruptcy

Bankruptcy Procedure of an Individual - this is a very time consuming and time consuming process. On top of that, bankruptcy has a lot subtleties and nuances.

If a citizen has decided to receive bankruptcy status, he should think about the professional assistance of specialists in the field of bankruptcy.

In Russia, there are many registered law firms that are eligible and assist the population in recognizing bankruptcy. Turning to professionals will save the citizen from the need to delve into all the nuances of the law.

In addition, specialists with extensive practical experience in the field of bankruptcy will help the debtor find the most profitable solution to a difficult financial situation, save time and money. Here are some companies whose main activity is qualified assistance in bankruptcy.

So, the list of the most famous and reputable bankruptcy companies of individuals and entrepreneurs includes:

1. Company "National Bankruptcy Center"

The organization has many years of experience in both large megacities (capitals) and in regions. You can ask for help both from a large city and from a provincial city of our country.

2. Company "All-Russian Bankruptcy Service"

An organization with many branches in all major cities of the Russian Federation. A reliable company (one of the leaders in its field), which advises clients both offline and online.

3. The company "Stop Credit"

Organization of a narrow specialty, which deals exclusively with disputes with microfinance (not only) companies. If you need help in the field of repayment of loans and other debts, you can contact this company.

4. The company "FinYurist"

Another bankruptcy company for individuals and entrepreneurs throughout Russia (offices in large cities). It is possible to get a free consultation by phone and the Internet.

8. Criminal liability for fictitious (intentional) bankruptcy of individuals and individuals

Fictitious bankruptcy is the intentional presentation of inaccurate information about the financial situation. Using the fictitious bankruptcy procedure, individuals and private individuals try to get rid of accumulated debts and achieve their subsequent write-off.

There are situations when in a similar way private individuals want to get rid of the credit burden.

Businessmen in the event of fictitious bankruptcy, they try to close a loss-making business.

Should rememberthat a trial will be held full and meticulous analysis of all evidence, assigned an assessment of existing assets, transactions and concluded contracts.

In most cases, a comprehensive trial reveals signs of fraud.

In addition, the accumulated experience in financial management allows specialists to determine fictitious bankruptcy.

Signs of fictitious bankruptcy:

• transactions, the subject of which is real estate, are concluded with close relatives, family members or other acquaintances (third parties);
• money was transferred to the accounts of unauthorized persons or organizations;
• suspicions of the resale of valuables, jewelry and other expensive items at too low a price.

Responsibility for fictitious bankruptcy is very serious - imprisonment for fraud and heavy fines. Alternative punishment - up to 5 years of community service.

Therefore, it is very important to observe all the features of the liquidation and bankruptcy proceedings.

We also recommend that you read an article about the liquidation of LLCs, which describes step-by-step instructions on how to close an LLC, including through bankruptcy proceedings.

9. Frequently asked questions about the bankruptcy of individuals and individuals

Consider the questions that users ask about the topic of publication:

Question 1. How much does a bankruptcy of an individual cost?

The cost of bankruptcy of an individual consists of several components:

1. by submitting an application and a package of necessary documents to the arbitration court, the applicant in accordance with the tax legislation of the Russian Federation (from 01.01.2017) should pay state duty at the rate of 300 rubles (the amount changes periodically, the exact amount of the state duty can be found on the website of the Federal Tax Service);
2. The cost of bankruptcy proceedings includes payment for the services of a financial manager. The average price of services is 25 000 rubles.

Important! If it turns out that the creditors have already filed a petition for declaring the debtor bankrupt, the state duty is not paid.

If the debtor does not have the financial capabilities to pay for the services of the manager, he can file a request for an installment payment.

Question 2. During what time does the bankruptcy of individuals occur?

The procedure for declaring an individual bankrupt is quite a long one. It is time consuming and requires increased patience.

The legislator has established the following timelines for the stages of bankruptcy of individuals:

• preparatory stage: filling out the application and preparing the required package of documents - approximately about 1 month;
• consideration of application in court, it takes a period of time from 2 weeks to 3 months;
• if accepted debt restructuring decision - from 3 months to 3 years;
• when bankruptcy and sale of property of the debtor - about 6 months.

As a result, subject to all provisional rules, the court resolves the bankruptcy case lasts more than 1 year.

Question 3. What threatens bankruptcy to an individual entrepreneur?

Many start-up entrepreneurs issued loans for individual entrepreneurs and various loans for business development. Under the new law, this is an impressive part of the entrepreneur’s total debt, on the basis of which he can file for bankruptcy.

Recall that in the amount of debt obligations that it is possible to get rid of as a result of bankruptcy, do not include debts on alimony, on payments from harm to health.

Many entrepreneurs think that declaring themselves bankrupt they will get rid of financial problems. However, bankruptcy entails serious limitations.

They are largely similar to the problems that arise during the bankruptcy of individuals, with some features:

• the entrepreneur automatically loses IP status;
• information on the bankruptcy of IP is included in the Unified State Register of Legal Entities (Unified State Register of Legal Entities);
• within 5 years after bankruptcy, re-registration of a new IP is prohibited.

The main problem arising from bankruptcy of IP - insolvent status causes serious damage to the business reputation of the entrepreneur.

10. Conclusion + video on the topic

In conclusion, we offer you to watch a video from an expert (Head of the Department of Security Procedures for Bankruptcy of the IFTS):

Also emphasize that bankruptcy of an individual or individual entrepreneur - This is a complex and step-by-step procedure, requiring a large financial and time costs from a citizen. In addition, recognition of its insolvency is an extremely unpleasant and annoying situation, which deprives a private person of a lot of moral strength.

In order to take such a crucial step, it is necessary to weigh everything very carefully, and analyze the consequences of their actions in the future.

In the current situation, when the legislative framework governing the institution of bankruptcy of individuals needs to be improved and amended, the bankruptcy procedure should be started in deadlock in the absence of an alternative way out of a difficult financial situation.

The team of “Rich Pro” magazine wishes you good luck and success in legal matters. If you have any comments or have questions about the bankruptcy of individuals (IP), then ask them in the comments below.

Watch the video: How Rich People Avoid Paying Taxes -Robert Kiyosaki (May 2024).