4 6 Article 213.28. How to avoid hitting a pitfall when declaring bankruptcy

Since October 1, 2015, the institution of personal bankruptcy has existed in Russia. The law, which has been discussed and waited for a long time, could affect the interests of more than five hundred thousand Russians.

The law allows the debtor to independently initiate bankruptcy proceedings. This is a way out for Russians who do not have the means to pay off their debts. This is an opportunity to legally write off debts or restructure them.

For now, personal bankruptcy cases are being considered by arbitration courts (Federal Law of June 29, 2015 No. 154-FZ).

Today in the material about the pitfalls of the bankruptcy procedure for individuals. Is it really beneficial for a Russian to declare himself bankrupt?

Check the terms and conditions(see clause 2 of Article 213.4 of the Federal Law of October 26, 2002 No. 127-FZ “On Insolvency (Bankruptcy)”). The debtor has the right to file an application for declaring him bankrupt if:

• in fact, the citizen is unable to fulfill monetary obligations and (or) the obligation to pay mandatory payments on time;
• signs of insolvency and (or) insufficiency of property; there is a debt to creditors, its size exceeds the value of the debtor’s property (see paragraph 3 of Article 213.6 of the bankruptcy law).

Collect documents. There will be a lot of them. According to the law, a citizen must attach to the application a voluminous package of documents that will confirm the validity of the request:

• a certificate issued by the bank on the availability of accounts, deposits (deposits) in the bank and (or) on cash balances in accounts, deposits (deposits), statements of transactions on accounts, on deposits of citizens ... for a three-year period;
• lists of creditors and debtors;
• an inventory of the citizen’s property indicating the location or storage of the property;
• other documents, which can be found in paragraph 3 of Art. 213.4 of the bankruptcy law.

Check how much you owe. The lower threshold is 500,000 rubles. A citizen is obliged to apply to the court for personal bankruptcy if cannot pay claims and the arrears have exceeded three months; or the amount of debt exceeds 500 thousand rubles (see paragraph 1 of Article 213.4 of the bankruptcy law). If the bankruptcy application was filed by creditors, and not by the debtor, then after completion of the bankruptcy procedure, the debt outstanding through the sale of property will not be written off (see paragraph 2, paragraph 4, article 213.28 of the bankruptcy law)

To you you'll have to fork out more to conduct bankruptcy proceedings:

• remuneration to the financial manager - 10 thousand rubles. plus interest (see clause 3 of article 20.6 of the bankruptcy law).
• expenses for publishing information during the bankruptcy procedure (see clause 4 of article 213.7 of the bankruptcy law); this is approximately 170 rubles, including VAT per square meter. cm.

You will lose several of your rights during the procedure. What we're talking about:

• prohibited from purchasing or alienate property, pledge it, for obtaining and issuing loans (credits), sureties and guarantees, assignment of claims, etc. (see paragraph 5 of Article 213.11 of the bankruptcy law); if a citizen is declared bankrupt, then he cannot independently dispose of his property, which constitutes the bankruptcy estate;
• prohibited from traveling abroad at the discretion of the court (see paragraph 3 of Article 213.24 of the bankruptcy law);
• prohibited from disposing money on bank accounts; The citizen is obliged to transfer all his bank cards to the financial manager (clause 5-6, clause 9 of article 213.25 of the bankruptcy law).

Restrictions there is also after a citizen is declared bankrupt. So:

• within 5 years, a citizen is obliged to notify about the fact of bankruptcy when applying for a loan or loan (clause 1 of article 213.30); when purchasing goods, works and services with installments or deferred payment (Clause 3 of Article 213.19 of the Bankruptcy Law).
• for 3 years, a citizen does not have the right to hold positions in the management bodies of a legal entity or otherwise participate in the management of a legal entity (clause 3 of Article 213.30 of the bankruptcy law).

Transactions bankrupt citizen, which he concluded within three years before the date of acceptance of the application for bankruptcy, both creditors and the financial manager can challenge. For example, the debtor sold the property at a suspiciously low price. The statute of limitations for challenging transactions is calculated from the date when the financial manager learned or should have learned about the existence of grounds for declaring the transaction invalid (see paragraphs 1-2 of Article 213.32 of the bankruptcy law).

Remember the list of property that is prohibited from foreclosure (Article 446 of the Code of Civil Procedure of the Russian Federation). In particular,

• residential premises (parts thereof) and land plots underneath them, if for the debtor citizen and his family members living with him, it is the only premises suitable for permanent residence, except in cases of collateral;
• items of ordinary home furnishings and household items;
• personal items (clothing, shoes and others), with the exception of jewelry and other luxury items;
• money for a total amount not less than the established subsistence level of the debtor citizen himself and his dependents, etc.

The court has the right to exclude property from the bankruptcy estate worth no more than 10 thousand rubles, if its sale does not significantly affect the satisfaction of creditors’ claims (see clause 2 of article 213.25 of the bankruptcy law). Whether it is significant or not is independently decided by the court in each specific case.

By the way, if the property is not sold, and creditors do not accept it to pay off their claims, then the citizen has the right to dispose of it again (see paragraph 5 of Article 213.26 of the bankruptcy law). The claims of creditors, even if they are not fully satisfied, as a general rule will be satisfied (see paragraph 6 of Article 213.27 of the bankruptcy law).

To summarize, we note that each case is individual. A citizen, when starting a bankruptcy procedure, must take into account all the risks that he will incur. He must be aware of all the possibilities. The main opportunity is to minimize and terminate debt obligations. Be careful and honest.

Version Effective October 1, 2015 Article 213.28. Completion of settlements with creditors and release of a citizen from obligations [Bankruptcy Law] [Chapter X] [§ 1.1] 1. After completion of settlements with creditors, the financial manager is obliged to submit to the arbitration court a report on the results of the sale of the citizen’s property, attaching copies of documents confirming the sale of the property citizen and repayment of creditors' claims, as well as a register of creditors' claims indicating the amount of repaid creditors' claims. 2. Based on the results of consideration of the report on the results of the sale of the citizen’s property, the arbitration court issues a ruling on the completion of the sale of the citizen’s property. 3.

An error occurred.

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• Law “On Insolvency (Bankruptcy)”
• Chapter X of the Law “On Insolvency (Bankruptcy)”
• § 1.1 of the Law “On Insolvency (Bankruptcy)”
• Article 213.26 of the Law “On Insolvency (Bankruptcy)”

1. Within one month from the date of completion of the inventory and assessment of the citizen’s property, the financial manager is obliged to submit to the arbitration court a regulation on the procedure, conditions and timing for the sale of the citizen’s property, indicating the initial sale price of the property. This provision is approved by the arbitration court and must comply with the rules for the sale of the debtor’s property established by Articles 110, 111, 112, 139 of this Federal Law.
A ruling is issued on approval of the regulations on the procedure, conditions and terms for the sale of a citizen’s property and on establishing the initial price for the sale of property.

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Claims of creditors for current payments, compensation for harm caused to life or health, payment of wages and severance pay, compensation for moral damage, collection of alimony, as well as other claims inextricably linked to the creditor’s personality, including claims not stated when introducing the restructuring of a citizen's debts or the sale of a citizen's property, they remain in force and can be presented after the end of the bankruptcy proceedings of the citizen in the outstanding part in the manner established by the legislation of the Russian Federation. After the completion of the sale of a citizen’s property for the unsatisfied claims of creditors provided for in this paragraph and included in the register of creditors’ claims, the arbitration court in the manner established by the legislation of the Russian Federation issues writs of execution. 6.

How to avoid stumbling upon a pitfall when declaring bankruptcy?

If the financial manager is unable to sell the citizen’s property and (or) claims against third parties in the prescribed manner and the creditors refuse to accept said property and (or) claims to pay off their claims, after the completion of the sale of the citizen’s property, his right to dispose of the said property is restored. property and (or) claims. In this case, the property that constitutes the bankruptcy estate and has not been sold by the financial manager is transferred to the citizen under an act of acceptance and transfer. In this case, paragraph 1 of Article 148 of this Federal Law does not apply.

6. The financial manager is obliged to inform the citizen, bankruptcy creditors and the authorized body upon their requests about the inventory, assessment and sale of a citizen’s property, and also report to the meeting of creditors.

Section 213.26. Features of the sale of a citizen's property

Fresh clarifications from the Russian Supreme Council on bankruptcy of citizens

After completing settlements with creditors, a citizen declared bankrupt is released from further fulfillment of creditors’ claims, including claims of creditors not declared when introducing the restructuring of the citizen’s debts or the sale of the citizen’s property (hereinafter referred to as the release of the citizen from obligations). The release of a citizen from obligations does not apply to the claims of creditors provided for in paragraphs 4 and 5 of this article, as well as to claims the existence of which the creditors did not know and should not have known at the time the determination was made to complete the sale of the citizen’s property. 4.

Hello. I am concerned about paragraph 5 of Article 213.28 of the bankruptcy law. Please explain what is meant here? 5. Claims of creditors for current payments, for compensation for harm caused to life or health, for payment of wages and severance pay, for compensation for moral damage, for the collection of alimony, as well as other claims inextricably linked with the personality of the creditor, including claims not declared upon the introduction of the restructuring of a citizen’s debts or the sale of a citizen’s property remain valid and can be presented after the end of the bankruptcy proceedings of the citizen in the outstanding part in the manner established by the legislation of the Russian Federation.

What surprises you here? Not all debts are written off in personal bankruptcy. This article is exactly about this. If an individual has alimony and is declared bankrupt, the alimony debt will not be written off anywhere, even if it was not declared in the bankruptcy procedure of a citizen.

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Information on the topic

writing off the debts of a bankrupt citizen

Document PLENAUM OF THE SUPREME COURT OF THE RUSSIAN FEDERATION DECISION of June 23, 2015 N 25
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