Recently, citizens have received a life-saving opportunity to get rid of debt through personal bankruptcy. In the past few years, this procedure has become available not only for organizations, but also for individuals. The service turned out to be so in demand that the number of people who were able to prove their insolvency, who were completely written off or, in other words, who were forgiven unbearable debts, increased dramatically.
More than 30 thousand Russians managed to get out of the financial loop, according to the Judicial Department at the Supreme Court of the Russian Federation. At the same time, the percentage of debt cancellation (department statistics for 2017-2018) did not exceed 2% of all court cases. The amounts are not reimbursed to creditors, but there are no other options - and you have to forgive.
The bankruptcy of individuals in any city of Russia since October 2015 is regulated by the law of the Russian Federation No. 127. This law does not provide preferential payments and does not cover debts at the expense of budgetary funds, but, being a real life buoy for drowning people, literally cancels payments and completely removes all problems with creditors, collectors, banks. Thus, a person officially and absolutely legally declared bankrupt ceases to be a debtor.
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Declaring personal bankruptcy is a rather complicated and lengthy legal procedure. You have to collect a large package of documents, look for an arbitration manager, prove your financial insolvency, agree to the sale of property, in a word, sacrifice a lot. But personal bankruptcy allows you to get rid of credit bondage.
Upon completion of the procedure for the official bankruptcy of individuals, the debt is written off.
The document dedicated to the institution of bankruptcy is called the Law of the Russian Federation No. 127 "On Insolvency (Bankruptcy)". Any Russian citizen with a debt of more than 500,000 rubles has the right to write off unbearable debt within the framework of this law. and 90 days late payment.
Will the procedure for personal bankruptcy save you from debt? Credit institutions deliberately mislead people by calling bankruptcy a legal deferral. In reality, the person will no longer have to fulfill the requirements of the creditor. In other words, upon completion of the bankruptcy of an individual, all debts are written off.
The law works. And the proof of this is the provided statistics of the Judicial Department since 2015: more than 30 thousand people were released from credit obligations in court. Therefore, if you have serious difficulties with paying off debts, you should think about the possibility of declaring personal bankruptcy to write off them. So you will definitely not have to borrow from friends, take new loans to close old ones, mortgage property, pay fines and penalties and be afraid of calls from collectors.
The legal document applies not only to credit debts (mortgage, consumer, car loans). Tax debts, housing and communal services debts, and fines issued to the traffic police will be forgiven. All this is reset to zero at once, as soon as the individual is declared financially insolvent by the court. However, alimony payments, compensation for harm to life and health and moral damage are not subject to write-off, even within the framework of personal bankruptcy.
There is also a legislative possibility of debt restructuring. In simple terms, restructuring is drawing up a new loan repayment plan. And for this period, the sanctions and the accrual of penalties are frozen.
For personal bankruptcy, it is not necessary to wait for a delay of three months. The application can be submitted on the eve of the upcoming delay. Both the debtor himself and the credit organization or tax authority can apply to arbitration with a claim.
2019 Personal Bankruptcy Process - Step-by-Step Instructions:
- You are filing an application with the court.
- The validity of the bankruptcy petition of an individual is checked.
- A judicial act is delivered.
You collect a package of documents proving your insolvency. You must convince the court that you cannot pay and that the situation will not improve in the future. After the approval of the application by the judge, the accrual of all fines and penalties is suspended, the activity of credit organizations and the actions of collectors is prohibited. The solution of material issues is transferred in case of bankruptcy of individuals to a manager appointed by a self-regulatory organization (SRO).
Further, three variants of events are possible:
- An amicable agreement with a credit institution to write off part of the debt or to defer payments. And the termination of the bankruptcy case.
- Debt restructuring, in the presence of permanent income and no criminal record for economic articles.
- Sale of property. The appointed bankruptcy commissioner evaluates the debtor's property, sets deadlines and submits the reporting papers to the court.
It is important to understand: you cannot take away a person's only apartment, clothes and shoes, household items, etc.
After the manager has dealt with the property, the procedure will be completed. And the outstanding debt is recognized as uncollectible and is completely written off.