Since 2015, the insolvency procedure has become applicable to ordinary citizens. But do not expect that everyone can take advantage of this opportunity, and that it is easy to do it.

Grounds for starting the procedure

The bankruptcy procedure for individuals is regulated by Chapter 10 of the Federal Law of the Russian Federation N127-FZ "On Insolvency". Penalties for illegal actions of debtors are given in the Code of Administrative Offenses and the Criminal Code. There are the following reasons for starting the procedure:

• duty ( more than 500 tr.) to the creditor who is not able to cover the physical. person (a person is obliged to apply himself within 30 working days from the moment the obligations arise) (clause 1 of article 213.4).
• a citizen foresees bankruptcy due to circumstances for which he cannot cover debts on time, he is insolvent and does not have sufficient property (he has the right to resort to the procedure) (clause 2 of article 213.4).

In the second case, evidence of insolvency must be presented to the court. If the court decides that solvency can be restored, then debt restructuring will be launched.

In addition to the debtor directly, the following persons can apply to the court with the requirement to start the bankruptcy process:

• creditors;
• authorized state organs.

Stages of bankruptcy of individuals

When considering a claim, the following applies (Article 213.2):

• amicable agreement (can be concluded after filing a claim by the creditor, avoiding bankruptcy);
• debt restructuring (a debt repayment plan is being developed, calculated for no more than 3 years, a person does not become bankrupt);
• sale of property (carried out after the person is declared bankrupt, the implementation period is no more than six months, but it can be extended at the request of interested parties).

In the course of the case, a financial manager is involved. He receives remuneration for his work, which is paid by the debtor: 25 thousand rubles... He draws up a restructuring program, controls the sale of property, distributes debts to creditors. A citizen is obliged, within 15 days, upon request, to provide him with all the necessary information.

Insolvency petition

To apply to arbitration to initiate a bankruptcy case for individuals, it is necessary to collect a large package of papers. Their full list is indicated in clause 3 of Art. 213.4.

Bankruptcy documents:

• Application (indicating the SRO in which the manager will be selected).
• Proof of transfer of a copy of the application to creditors.
• Confirmation of debt, indicating the reason for the occurrence.
• Proof of Insolvency.
• Extract from EGRIP (whether an individual is an entrepreneur).
• List of creditors, their details and the amount owed.
• Property inventory, incl. pledge with an indication of the holder of the pledge.
• Ownership documents for him.
• Documents on transactions carried out over 3 years.
• Inquiries from the bank about existing accounts, deposits and funds on them.
• SNILS, as well as an extract from the personal account.
• Information about income and taxes for 3 years before bankruptcy.
• Family information: certificates, marriage agreement, etc.
• Other securities as appropriate.
• Evidence of payment of remuneration to the manager's account.
• Receipt for payment of the duty (RUB 6).

How to submit documents?

You can file for bankruptcy for an individual on your own in 3 ways:

• in person (have a passport with you);
• by registered mail;
• through the website of the court.

The papers are handed over to the Arbitration Court at the address of registration or registration. In case of personal filing for bankruptcy, the application is submitted in 2 copies. Copies of the required documents are attached to it.

How to file bankruptcy of an individual for loans?

Most of the people go to bankruptcy due to credit arrears. If a citizen declares insolvency personally, then he is obliged to send copies of documents to creditors. If the restructuring of an individual is not possible, then the sale of the property is initiated at the expense of the creditor. In the course of the insolvency procedure, the following may be withdrawn:

• jewelry, luxury goods worth more than 100 tr.;
• real estate, incl. mortgage (if it is not the only one available);
• vehicles, etc.

A complete list of things that cannot be sold is given in Art. 446 Code of Civil Procedure.

Insolvency problems of citizens

Due to the imperfection of the law on bankruptcy of individuals, many people cannot use it. The reasons are as follows:

• a large list of documents (most of the cases are not considered due to insufficient paperwork);
• large expenses (only for the court and the manager you need to spend 31 tr., in addition to obtaining paid certificates, etc.);
• debt obligations may not be released after implementation (Article 213.28);
• if the person has nothing, then the court can stop the procedure.

Challenging transactions

From the moment the restructuring begins in the bankruptcy procedure for individuals, the financial manager has the right to challenge:

• suspicious transactions (art. 61.2), concluded within 12 months before the submission of documents;
• transactions that have caused damage to creditors (within 3 years) or with a preference for one, but damage to the other (Art. 61.3).
• spouse's transactions in relation to common property, on the grounds given in Art. 35 SK (Article 213.32).

Consequences of bankruptcy of an individual

A positive consequence of the process of insolvency nat. persons - exemption from the payment of debts, interest and penalties, but this will be done only after the withdrawal of things for sale from the auction.

However, it also has a lot of negative aspects (Article 213.30):

• you cannot take loans and credits without reporting bankruptcy (5 years);
• there is no possibility to manage a legal entity. person (3 years old);
• it is prohibited to register an individual entrepreneur (year);
• the filing of a new bankruptcy petition is rejected (5 years);
• a temporary ban on leaving the country is possible (clause 3 of article 213.24).

Listen

Until 2015, only legal entities could declare bankruptcy, however, according to the adopted Federal Law on the bankruptcy of individuals of the Russian Federation, now individuals can also be released from credit obligations in this way. To do this, you need to submit the relevant documents to the arbitration court.

Personal bankruptcy in 2020 - conditions

To be declared bankrupt, a person must have a debt to an organization or a third party in the amount of at least half a million rubles and not be able to return the funds for at least 3 months.

A person may be declared insolvent if, after paying all debts, an amount remains in his hands that does not reach the subsistence level. It is impossible to live on such an amount, but simply not letting creditors know about yourself is not best idea... The only possible way to deal with the situation is to officially declare oneself bankrupt.

A prerequisite for declaring bankruptcy of individuals is to be a citizen of Russia. In addition, you must prove that there are circumstances preventing the payment of the debt. This can be a layoff at work or an injury that prevents you from continuing to carry out your work duties. The following conditions must also be met:

• You are a bona fide borrower and have made attempts to independently deal with creditors (you can provide correspondence with the bank);
• You do not hide your income or property. Otherwise, the court will refuse to declare bankruptcy.
• You are working or looking for a job (be sure to be registered with the official job exchange).

Since the property will be sold to eliminate debts in the event you are declared bankrupt, you need to weigh the pros and cons of such a step.

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Individual bankruptcy procedure - step by step instructions

If you nevertheless decide that the only possible option in your situation is to declare bankruptcy, the sequence of actions is as follows:

1. Preparation: collecting the necessary documents. To submit an application you will need:
   • personal documents(marriage certificates, documents on the birth of children, guardianship, etc.);
   • copies of SNILS, TIN, extract on personal account;
   • transfer property with confirmation of ownership;
   • income statement and account statements;
   • extract from the register in the presence of shares;
   • loan agreements under which debts have accumulated indicating the amounts and location of creditors;
   • inventory of property;
   • medical documents confirming guardianship, trauma, operations.
2. Prepare a written description of the situation that led to bankruptcy (attached to the application).
3. Submit your application and documents to the court in person, by mail or online.

Once the application is filed, no creditor will have the right to collect funds from you. You will also not be eligible to pay off debts. The court will have a maximum of 7 months on the information provided and the ruling.

The judicial authority may propose debt restructuring. The schedule of the procedure is proposed by the debtor or the lender, it cannot last more than 3 years. In this case, the debtor's income is of primary importance. After deducting the means to ensure life, the debtor's money will be directed to liquidate the debt in such a way as to meet the three-year deadline and not leave the individual without a livelihood.

Once you need to pay for the services of a financial manager - 25,000 rubles. If you need to get an installment plan, a corresponding application must be submitted to the court.

After the bank's decision to declare the bankruptcy of an individual, an appraisal of the property is assigned. If the borrower and lender disagree with her, they can challenge the decision. The financial manager organizes. Can be sold:

• real estate;
• transport;
• Appliances;
• jewelry.

Property worth more than 100 thousand rubles. sold at an open auction, which is notified to all creditors. The proceeds will be used to pay the debt.

Bankruptcy petition

After preparatory steps have been fulfilled (this includes the collection of the necessary documents and the payment of mandatory court fees), then you can apply to the Arbitration Court to submit an application along with the necessary documents. It is filled in in free form, however, it must contain key information (the reasons for the debt, its amount and the period of default). If an installment plan is required to pay the manager's remuneration, an additional application is submitted.

Thus, we answered the question of how to file documents for bankruptcy of an individual. Once again, we emphasize that each situation is individual, so you need to be prepared for the fact that you need to collect any additional information. We also note that before going to court to obtain bankruptcy status, read the current legislative acts and make sure your situation meets the requirements for bankruptcy.

Documents for bankruptcy of an individual

A complete list of documents that must be included in the package attached to the submitted application is determined in each specific situation, depending on the existing features. However, there is a basic set to be guided by in this situation. In accordance with it, the list of documents that are required when filing a bankruptcy petition includes the following:

• documented confirmation that the citizen has outstanding financial obligations in the form of loans, loans and any other loans, indicating the amount of the resulting debt (all this information can be requested from creditors);
• the decision of the courts - in the presence of outstanding debts;
• documents that indicate the income received by a citizen over the past three years (here, not only wage, but also pension, social benefits, dividends and interest on, if any);
• a statement from the bank about all open accounts, which should contain information not only about the balance of funds, but also about their movement through accounts over time;
• information on the flow of funds through accounts in electronic payment systems, if any;
• documents that contain information about movable and immovable property owned by the debtor (this includes even shares in the authorized capital and securities, if any);
• contracts concluded by the debtor, the object of which is property worth more than three hundred thousand rubles (confirming the facts of donation, purchase and sale or assignment of the right of claim);
• personal documents proving the identity of a citizen, including a passport, TIN certificate, insurance certificate;
• documents confirming the family status of a citizen (birth certificates of children, marriage or divorce certificates, marriage agreement, etc.);
• documents containing information on tax payments being made (statement of a personal account opened with the Pension Fund);
• a certificate from the tax office, which contains information about whether the citizen has the status of an individual entrepreneur (note that its validity period is only five days).

Challenging transactions in case of bankruptcy of an individual

The legislation of the Russian Federation implies that some transactions may indeed be invalidated. Specifically, the clauses, as well as decrees designed to supplement, expand the explanation of this act, speak about this in more detail.

There are two types of transactions that the court can consider invalid and make an appropriate decision on them.

The first type - "preferred" - transactions that were concluded with a number of creditors (1 or more). So, if, in the end, financial interests were infringed and the claims of other organizations, which are also creditors of this debtor, were not satisfied, there is reason to suspect the preference of the interests of one of the creditors in relation to others. In the context of the first type of transactions, it is customary to consider agreements that were signed no earlier than six months before the start of the bankruptcy procedure.

The second type - "suspicious" - transactions that were concluded with a deliberately stipulated unequal counter remuneration. In this case, it is allowed to dispute transactions concluded for a period not less than 12 months before the start of the bankruptcy procedure, and 12 months after. It is also customary to refer to the second type of transactions that were concluded with the explicit intention of causing harm in relation to creditors. Such transactions can be challenged if they were concluded no earlier than 36 months before the start of the bankruptcy procedure.

Usually, in order to avoid the negative consequences of the impending bankruptcy, the debtor can begin in advance to get rid of the property that will be subject to bankruptcy proceedings. This is done by:

• sales contracts;
• transfer of property allegedly as a gift;
• under the outpost agreement.

Such transactions during bankruptcy proceedings must be agreed with the manager.

How is bankruptcy transactions challenged in court practice?

Let us consider in more detail the actions themselves that are performed during this procedure and their order.

1. Creditors turn to the bankruptcy manager or make their decision on the board of creditors, so that the manager can subsequently initiate proceedings on this issue.
2. If the creditors' council refuses to submit an application to the court, the creditor has the right to submit it independently.
3. If the creditors' council agrees to submit the application, then the manager applies to the Arbitration Court.
4. The court starts the proceedings.
5. The court considers the package of documents attached to the application.
6. Based on this consideration, the court makes a decision: the transaction is either canceled, or the court refuses to implement this procedure.

Consequences of bankruptcy of individuals

It is up to you to make the choice whether or not to start the bankruptcy procedure. However, sometimes the debtor simply has no choice. The consequences are the same for everyone, but everyone has different reviews about it. So, after being declared bankrupt, an individual, according to the Federal Law on Bankruptcy of Individuals:

• will not be able to hold leadership positions for 3 years;
• the bankruptcy procedure cannot be repeated in the next 5 years;
• creditors must be notified of the new bankruptcy procedure.
• all the property of a citizen from this moment is disposed of by his manager, who can use it to pay off debts through special procedure selling it;
• the citizen himself is deprived of the right to conduct any transactions with his property;
• if a citizen has shares or shares in companies, then they are also disposed of by the manager from that moment;
• all bank cards must be handed over to the manager within 1 day after the court decision;
• it is prohibited to open or close your bank accounts, this right also passes to the financial manager;
• if someone owes the citizen himself, then the manager sues to collect all these debts.

Simplified bankruptcy procedure for an individual

In general, a simplified procedure is a concise, abbreviated process of approving the status of an economic entity as “economically insolvent”.

The process is reduced due to the reduced number of active actions in the course of resolving the bankruptcy issue, and a significant influence is also exerted by the fact that the subjects falling under this category, as a rule, are not active market participants, they have neither income nor expenses.

This clerical algorithm is actually used when monetary expression the value of the valuables of a legal entity or individual is not enough even to compensate for the costs of the office work itself.

The main stages of the procedure are as follows:

• the decision was made on a voluntary basis;
• a liquidator is appointed;
• liquidation statements are entered into the register;
• all interested parties are informed (including creditors);
• a balance sheet is drawn up at the time of liquidation;
• calculation of the total amount of debt;
• if the debt is higher than the monetary expression of obligations, an official request is submitted to the bankruptcy court;
• a bankruptcy order is issued;
• opens;
• a manager is appointed who places an announcement that the person is bankrupt;
• the debtor's property undergoes an appraisal, and is open for its implementation.

Features, advantages and disadvantages of the simplified procedure

In addition to the above, the procedure has some features that should be mentioned. With a simplified bankruptcy procedure for an individual or legal entity, the usual procedures for such a process (, reorganization, external management) are excluded.

So, the plus is that we get rid of the operations that take the most time. On the other hand, a minus in this situation is that the debtor does not have the opportunity to return solvency, as is the case with the usual procedure.

The simplified scheme acts as a kind of voluntary liquidation, so the whole procedure begins with bankruptcy proceedings.

The procedure for declaring a citizen bankrupt is relatively new to our legislation. For some, this is a real chance to get rid of a lot of debt, forever saying goodbye to creditors and collectors. But is it that simple?
Today I will talk about the negative and positive consequences declaring an individual bankrupt.

○ What are the consequences for an individual after bankruptcy? Can I get a loan or open an account?

Bankruptcy proceedings do not prevent a citizen from enjoying life to the fullest after a trial.

Having paid off creditors who have declared their claims during the court procedure, the citizen is completely freed from past debts. This means that he can live and work just like any other person without loans.

But, of course, information about bankruptcy and negative credit history will be available to banks. For several years after declaring an individual insolvent, it is impossible to hide information from lenders that a bankruptcy case was heard against a citizen. In view of this, it will be difficult to obtain a loan later.

A bank account can be opened at any time after the trial.

○ What is personal bankruptcy?

Bankruptcy of individuals - recognition of an insolvent citizen by an insolvent arbitration court.

"An application for declaring a citizen bankrupt is accepted by an arbitration court, provided that the claims against the citizen are at least five hundred thousand rubles and the specified requirements have not been fulfilled within three months from the date when they must be fulfilled, unless otherwise provided by this Federal Law"
(Clause 2 of Art. 213.3 of Law No. 127-FZ"On insolvency (bankruptcy)").

The court accepts the application for proceedings if the individual meets the criteria for insolvency. Insolvency occurs when:

• The citizen stopped settlements with creditors, that is, he ceased to fulfill monetary obligations and (or) the obligation to pay mandatory payments, the due date for which has come.
• More than ten percent of the total amount of monetary obligations and (or) obligations to pay obligatory payments that a citizen has and the due date of which has come, has not been fulfilled by him for more than one month from the day when such obligations and (or) obligation must be executed.
• The amount of a citizen's debt exceeds the value of his property, including the right to claim.
• The presence of a resolution on the end of enforcement proceedings due to the fact that the citizen does not have property on which a claim can be levied "
  (Clause 3 of Art. 213.6 of Law No. 127-FZ).

Both the citizen himself and his lenders can declare their insolvency.

After the start of the bankruptcy procedure, the court invites all creditors of the individual to the process. The right to manage the accounts of the citizen is transferred to the financial manager, who takes measures to improve the financial condition of the person.

One of these measures is the collection of creditors to resolve the issue of providing a citizen with an installment plan to fulfill monetary obligations.

If the creditors agree, a debt restructuring plan is approved (payment by installments on favorable terms), if not, the citizen is declared bankrupt at this stage.

If the restructuring plan did not work, i.e. debts were not returned within the specified time, then the individual is also declared insolvent.

After a person is declared bankrupt, his accounts are blocked, property, in addition to the most necessary, is sold. The proceeds are used to satisfy the claims of creditors.

○ Bankruptcy legislation.

Basic legal act, which regulates the bankruptcy procedure - Federal Law No. 127 "On Insolvency (Bankruptcy)".

The specifics of the procedure for declaring individuals insolvent are contained in Chapter 10. It provides for:

• Grounds for petition for bankruptcy.
• Procedures within the process: debt restructuring, property sale, settlement agreement.
• The rights and obligations of the financial manager.
• The procedure for satisfying the claims of creditors.
• Consequences for an individual declared bankrupt.

○ Consequences for the debtor.

There are both negative and positive aspects of declaring a person bankrupt.

Of course, it is better for the debtor not to bother with court procedures at all due to their length and high cost. But if it so happened that there is no money to pay off debts and is not expected, a person will have to put up with a number unpleasant consequences, which for several more years will impose some restrictions on the freedom to choose the type of activity and the ability to take out loans.

Nevertheless, there are also positive aspects. This is writing off debts for which there was not enough property, getting rid of fines, ending the pursuit of collectors.

Let's consider the main consequences in more detail.

○ Negative consequences.

The main negative consequence is the sale of all available property, except for the property provided for in Art. 446 Code of Civil Procedure of the Russian Federation (the only housing, household items, animals, essentials). Also, all bankruptcy accounts are blocked, mortgage housing and collateral are taken away.

Other negative consequences occur at the end of the trial.

Let us examine what prohibitions for bankruptcy are established in Law No. 127-FZ.

✔ Prohibition to hold certain positions.

About what positions it is forbidden to hold a bankrupt is indicated in paragraph 3 of Art. 213.30 of Law No. 127-FZ:

"Within three years from the date of completion of the procedure for the sale of property in relation to a citizen or the termination of bankruptcy proceedings in the course of such a procedure, he is not entitled to hold positions in the management bodies of the legal entity, otherwise participate in the management of the legal entity."

If we are talking about the bankruptcy of a citizen who is an individual entrepreneur, then the consequences will be more severe - he will not be able to open his own business or hold managerial positions for 5 years (clause 4 of article 216 of Law No. 127-FZ).

✔ Criminal proceedings.

If in the course of the judicial procedure it is revealed that the citizen is not really bankrupt or has received a loan by fraudulent means, he will be prosecuted.

Responsibility comes under different articles, depending on the grounds for bringing to it:

1. Fraud - obtaining loans by fraudulent means (Article 159.1 of the Criminal Code of the Russian Federation).
2. Concealment of property during bankruptcy proceedings, improper satisfaction of creditors' claims, creation of obstacles for the financial manager (Article 195 of the Criminal Code of the Russian Federation).
3. Fictitious bankruptcy - a statement of insolvency, if it is possible to pay the debt (Article 197 of the Criminal Code of the Russian Federation). In this case, the debts cannot be written off, the swindler will have to answer for his debts in full.

✔ Five-year term of impossibility to go bankrupt.

The ban is imposed on a citizen's own bankruptcy statement:

"Within five years from the date of completion of the procedure for the sale of property against a citizen or the termination of bankruptcy proceedings in the course of such a procedure, his bankruptcy case cannot be initiated at the request of this citizen."
(Clause 2 of Art. 213.30 of Law No. 127-FZ).

It follows from this provision that the creditor can bankrupt the citizen again. But the consequences of re-recognizing a person as insolvent will be more severe - he will have to answer for all existing debts, even if there is no way to repay them. That is, the funds will be withheld from future earnings.

✔ Obligation to notify creditors about bankruptcy proceedings.

In the next few years, a citizen is obliged to inform each potential creditor that a bankruptcy procedure has been carried out in relation to him:

"Within five years from the date of completion in respect of a citizen of the procedure for the sale of property or termination of bankruptcy proceedings in the course of such a procedure, he is not entitled to assume obligations under credit agreements and (or) loan agreements without indicating the fact of his bankruptcy"
(Clause 1 of Art. 213.30 of Law No. 127-FZ).

○ Positive consequences.

You can name the following positive aspects of the procedure:

• Getting rid of debt obligations.
• Getting rid of the claims of creditors and the pursuit of collectors.
• Suspension of the accrual of penalties.

The main consequence is debt cancellation, let's consider it in more detail.

✔ Writing off debts.

After a citizen is declared bankrupt, the stage of the sale of his property begins. All the property of the insolvent person is sold at auction (except for the property specified in Art. 446 of the Code of Civil Procedure of the Russian Federation), and the accounts are blocked.

Creditors' claims, previously entered in a special register, are satisfied from the proceeds in order of priority in accordance with Art. 213.27 of Law No. 127-FZ.

The financial manager controls the legality of the procedure.

When the property that can be sold runs out, the debts are to be written off. Claims not declared in the court proceedings cannot be presented to a citizen in the future by creditors.

"After the completion of settlements with creditors, a citizen declared bankrupt is exempted from further fulfillment of creditors 'claims, including creditors' claims that were not declared during the introduction of the restructuring of a citizen's debts or the sale of a citizen's property"
(Clause 3 of Art. 213. 28 of Law No. 127-FZ).

How to declare bankruptcy in 2020 everybody thinks more Russians... Many economic crises, high interest rates on loans and simply inability to plan expenses have led to the fact that many residents of the country were unable to fulfill their obligations under the agreements.

How to declare bankruptcy in 2020?

Creditors and collectors do not try to help debtors solve the problem, but only exert psychological pressure. Declaring themselves bankrupt on loans and other obligations for many people in this situation looks like the only chance to get out of the debt hole and start life anew. But this procedure is not easy. First, a person needs to figure out what needs to be done for bankruptcy, what consequences await and how much the entire procedure costs. Additionally, pitfalls must be taken into account. Virtually every debtor who decides on bankruptcy will have to face them.

What does it mean to declare bankruptcy?

You need to figure out in advance what it means to declare yourself bankrupt. You should not consider this procedure as a magic way to get rid of debt. Bankruptcy- This is the recognition by the judicial authorities of the debtor's inability to fulfill obligations to creditors, to make mandatory government payments (taxes, fees).

Initially, only organizations and individual entrepreneurs could go bankrupt in Russia. This mechanism was used quite actively, but ordinary residents of the country were deprived of the opportunity to legally get rid of unbearable debts, having gone through the procedure for recognizing themselves as insolvent. The law on bankruptcy of an individual began to operate in the Russian Federation only in 2015. This opportunity has already been used by tens of thousands of people who have decided to legally solve the problem of overwhelming debt on loans, borrowings and other obligations.

An individual can be declared bankrupt only by a court decision. Moreover, according to the law, such cases are considered by the Arbitration Courts. The initiator of the start of the procedure can be creditors (including those represented by government agencies, for example, the Federal Tax Service). But in practice, they are often in no hurry to take this step, fearing the loss of the possibility of debt collection.

For many debtors, the only real option- independently declare yourself bankrupt. This is possible by virtue of the law. In this situation, the debtor himself or his representative is responsible for filing an application to the bankruptcy court. But while there is no decision of the judiciary, no one can declare a person bankrupt.

What gives bankruptcy recognition before the bank

The main result of bankruptcy- writing off debts to creditors that a person cannot pay. But there are a number of exceptional situations:

• Debts will not be written off in the event of a fictitious bankruptcy, providing false information to the financial manager, issuing a loan based on false documents, with the provision of false information.
• Debts on wages, alimony, compensation for harm to life, health, property of individuals and legal entities are not subject to cancellation.
• Debts may not be written off if the debtor deliberately hid, destroyed the property, in case of malicious evasion of payment of debt and taxes (if this possibility was available).

What will happen to property if you are declared bankrupt for loans

Before declaring himself bankrupt, it is important for an individual to understand all the consequences. Sometimes, because of them, the losses can be very significant. During the procedure, the debtor's property will be sold at auction. This rule does not apply to the debtor's personal belongings (for example, everyday clothes), as well as to his only residence. In this case, the mortgage apartment can be withdrawn in the course of bankruptcy.

The risk of losing property stops many. But often it is better than losing it after the creditors have filed a claim and the enforcement proceedings have begun. It is also not worth worrying about the length of the process. The main thing is to figure out in advance what is needed to declare an individual bankrupt.

Conditions necessary for declaring an individual bankrupt

What is required to declare an individual bankrupt?

Before declaring yourself bankrupt in front of the bank and other creditors, you need to figure out if there is an appropriate right. Debt alone is not enough to start the procedure. It is intended for those who really cannot cope with their obligations.

Standard rules provide for the possibility of starting the procedure for recognizing a citizen as insolvent, subject to the following conditions:

• total debts exceed 500 thousand rubles;
• the delay has reached 3 months;
• the amount of debt is greater than the value of the property owned by the debtor (with the exception of personal belongings, the only home).

It is allowed to start the procedure even with a smaller amount of debt, if more than a citizen is not able to fulfill his obligations. But the catch is that with a debt amount of up to 500,000 rubles. you will have to prove your inconsistency. Otherwise, the courts refuse to accept the application.

Required documents for bankruptcy of an individual in front of the bank

How to start bankruptcy proceedings for a private person? The most correct option is to prepare all the documents. Without them, it will be virtually impossible to properly prepare the application, and the court may not accept it. If the bankruptcy petition is not accepted, then the citizen is given time to collect the documents and submit them to the court. If this is not done, the application is returned.

What documents are required to submit an application to the court depends on the situation of a particular person. All necessary papers can be divided into 3 main groups:

• Citizen identity documents. This is not only a passport, but also SNILS and an extract on the state of a personal account with the Pension Fund, TIN, marriage certificates, birth of children, a marriage contract if any, a certificate of the presence or absence of the status of an individual entrepreneur. In the event of a divorce within the last 3 years - the corresponding certificate and documents on the division of property (if any).
• Financial documents. To confirm income, you will need to submit a certificate of salary for the last 3 years, the pensioner also provides a certificate of the amount of pension. In the absence of work, they present a certificate from the employment service. Additionally, you must submit a list of property and documents on it (if any), certificates of the presence of bank accounts, statements on them. If a citizen owns shares, then a corresponding extract will also be required. When making transactions over the past 3 years in the amount of 300,000 rubles or more, all contracts must be submitted for them.
• Debt documents. You will need all contracts, statements and other documents confirming the amount owed to each creditor. And also it is necessary to submit all documents for non-credit debts (for example, certificates of tax arrears, debts for fines). Additionally, you need to make a list of all creditors, indicating their location, the amount of debt.

If any documents are missing, they should be requested in advance. Sometimes they have to wait 5-10 or even 30 days for their readiness. It is important not to forget that some certificates have their own validity period. For example, a 2-NDFL certificate will be accepted if received a maximum of 30 days before the date of application, and the validity period of a certificate of absence or presence of an individual entrepreneur status is 5 days.

Pros, cons and consequences of bankruptcy for a person

Advantages and Disadvantages of Bankruptcy

The main plus of bankruptcy- the ability to get rid of unbearable debts. They will be debited during the procedure. V individual cases, if a person is clearly able to pay off a debt in 3 years, then he will be given the opportunity to do it on a sparing schedule. Additionally, the following advantages of recognizing oneself as insolvent can be noted:

• Lenders and collectors will not be able to exert pressure. For them, a ban will be established after the first court session, at which the debtor is declared bankrupt and the procedure itself begins.
• Suspension of court decisions until the end of the procedure. After it, it will already be decided what to do with the remaining debts. This does not apply to alimony, compensation for harm to life and health.
• Fixing the amount of debt. The accrual of interest and fines is suspended with the beginning of the procedure for recognizing a person as insolvent. With large debts, late penalties can be huge.

Cons of bankruptcy proceedings

• During the bankruptcy procedure, the debtor cannot carry out transactions for the sale, donation or alienation in other ways, as well as the purchase of property. Until the procedure is completed, he also cannot manage his finances. All cards and accesses to online banks are transferred to the financial manager.
• You will have to bear additional financial costs. The services of a financial manager will have to be paid. Additional legal advice, if required, will also incur costs.
• Duration of the process. At least six months are spent on it, and sometimes the consideration of the case is delayed for a year or more.
• The very status of bankruptcy. Within 5 years, you will have to inform potential lenders about passing through the financial insolvency procedure when applying for any loan or credit. They can check it themselves. It will not be possible to hide this fact.
• Temporary ban on repeated passage through the procedure. It will be possible to re-start the bankruptcy procedure of an individual no earlier than 5 years after the completion of the previous one. This rule introduced so that people are responsible for the chance given to them.

The consequences of declaring an individual bankrupt before a bank

Additionally, there are other, not for everyone, pleasant consequences of declaring an individual bankrupt:

• Loss of part of the income received on time while the procedure lasts. It goes on average from six months to a year. At this time, all income is controlled by the financial manager and directed to the bankruptcy estate. The debtor can apply to him and receive monthly money for himself and the children in the amount of the living wage. If the income is higher than this amount, then the debtor's family will not receive the money. They will go to creditors.
• During the procedure, the court has the right to prohibit travel outside Russia. After the end of the procedure, these restrictions are removed and persons who have declared themselves bankrupt can safely travel to other countries. In practice, travel restrictions are rarely applied.
• It will not be possible to hold the post of a director or a member of the board of directors in any organization for 3 years. You can't own companies either. MFOs and NPFs cannot be managed for longer - 5 years, and to hold the post of the head of a bank - 10 years. You can register as an individual entrepreneur no earlier than 5 years after the end of the procedure for recognizing a citizen as insolvent.

In fact, for many people, the consequences of being declared insolvent are not so serious compared to the harassment by creditors and collectors, constant stress and attempts to solve the problem with debt repayment. But it is imperative to know them so as not to take too hasty steps.

How to independently declare yourself bankrupt in 2020 - step by step instructions

There are many companies offering bankruptcy assistance. They will not only advise on how best and correctly declare themselves bankrupt, but will also undertake the preparation of applications to the judicial authority, and, if necessary, will represent the interests of the debtor. But the services of consultants are paid. Not every person with debts can afford them.

In 2020, it is quite possible to save money and go into bankruptcy on your own. The procedure will be approximately as follows:

1. Collecting the necessary documents. It is not easy to get certificates, copies of agreements from creditors. They start to tighten this process or just apply pressure. If necessary, you should use the opportunity to request documents through a written request to the legal address of the lender.
2. Search for a financial manager. He must be a member of a self-regulatory organization, be listed in a special register and practice in the desired region. In total, there are more than 15,000 bankruptcy commissioners in the Russian Federation. The quality of their services varies significantly. It is better to contact specialists with experience and successfully completed cases.
3. Preparation of the application. There are no standard forms for a document. Contacting judiciary compiled independently. You can use the samples on the websites of the courts.
4. Submission of documents. Where to file for bankruptcy? To the arbitration court of the constituent entity of the Russian Federation, where the debtor is registered. You must first make a deposit of 25,000 rubles to the court to pay for the services of the manager, as well as pay a state fee of 300 rubles.
5. Participation in the first court session. If the court accepts the application, it will set a date for the hearing. It should be visited with preparation in advance. Questions about where the credit money went and how it was planned to repay the debt most likely will not be possible.
6. Going through the bankruptcy procedure. In the course of it, the court may introduce debt restructuring, the sale of property.
7. Completion of bankruptcy proceedings. Based on the materials of the case and the report of the financial manager at this stage, the court decides to release the debtor from debts or not.

How much does it cost to declare bankruptcy? The answer depends on the individual's situation. You will usually have to bear the following costs:

• state duty - 300 rubles;
• financial manager's remuneration RUB 25,000 (via court deposit);
• publications of the EFRSB, the Kommersant newspaper - about 22,000 rubles. (depends on the number of messages, the amount of property and other factors):
• postage costs of the financial manager - about 4000-5000 rubles;
• costs associated with the auction - depend on the situation (7% of the property value will go to the manager, and estimates, additional announcements are paid separately if necessary).

Usually, if you independently declare yourself bankrupt, you will have to spend at least 50-55 thousand rubles.