At the end of 2015, Russian citizens had the opportunity to write off their debts by declaring themselves insolvent or bankrupt. This procedure is governed by the Law on Insolvency. The law allows you to write off almost all debt, including debts on any loans. The exception is alimony and arrears in payments related to harm to life and health. However, 2019 bankruptcy of individuals is a rather complicated procedure that requires certain legal knowledge. In simple terms, it consists of the following points.
Reasons to declare bankruptcy
She is alone - an individual understands that he will not be able to pay off all debts within a certain period - income and the sale of property will not allow satisfying all the claims of creditors. In the event that the amount of such a debt exceeds 500,000 rubles, then this procedure must be completed without fail.
Pros of bankruptcy
- The accrual of interest, penalties, penalties and fines will stop.
- Creditors and collection services will no longer bother the debtor, as all of his property will go under the control of a financial manager.
- Housing is guaranteed to remain in the property, if it is the only one, and basic necessities.
Cons of bankruptcy
- All funds and property will go under the control of an unauthorized person.
- For three years after the bankruptcy procedure, a citizen is not allowed to hold positions related to the management and management of a legal entity. Your business reputation will be hopelessly damaged.
- Bad credit history will not allow taking out a loan in the future.
- Restricted travel outside of Russia.
- The bankruptcy procedure will require money. As practice shows, it may take from 50,000 to 200,000 rubles.
Bankruptcy proceedings
In order to declare yourself insolvent, you must:
- Submit an application to the court. To do this, it is necessary to describe in free form the structure of the debt - to whom and how much the borrower owes. Attach documents confirming these amounts to the application. Indicate the reasons for the impossibility of paying off debts, describe all property owned.
- The court will consider the case and if it decides that the debtor's insolvency does exist, it will approve his application and declare the debtor bankrupt.
He now has three options:
- settlement agreement;
- sale of property;
- debt restructuring.
From the moment of the judgment, all issues related to debt settlement fall on the shoulders of the financial manager.
