The legal procedure for recognizing a person's inability to fulfill their financial obligations is called bankruptcy of individuals, called bankruptcy. Any Russian citizen with a debt of more than 500,000 rubles has the right to write off the debt under Law No. 127-FZ "On Insolvency (Bankruptcy)". and late payment for more than three months.
A person has the right to apply for bankruptcy voluntarily, and a situation is provided in which a citizen is obliged to do so. One way or another, you can legally get rid of debts and loans in St. Petersburg.
Services of lawyers in bankruptcy of individuals
Declaring a citizen bankrupt is a complicated judicial procedure. The first and main task of a lawyer is to help a citizen who is unable to pay off his debts to find a way out of the situation. The norms of the law "On insolvency (bankruptcy)" make it possible to recognize the official bankruptcy of an individual if the person is unable to pay obligations due to the loss of a source of income or a decrease in the amount of earnings.
Upon completion of the legal procedure, the person no longer owes creditors.
Bankruptcy law
For a long time, the citizens of Russia did not have the legal opportunity to refuse debt obligations. On October 1, 2015, the Law of the Russian Federation No. 127 "On Insolvency (Bankruptcy)" came into force. Today he regulates bankruptcy proceedings. The Federal Law applies to credit debts (mortgage, consumer, car loans), tax debts, debts on housing and communal services and traffic police fines. However, payments for alimony, for compensation for harm to life and health and moral harm are not subject to write-off due to bankruptcy.
According to the legal document, situations are provided when a citizen is obliged to open a bankruptcy case and when he voluntarily decides to conduct the procedure. The obligatory ones include debts to several creditors and the inability to pay off the debt on time. A citizen is obliged to apply to the court no later than 30 days after he finds himself in a difficult financial situation that meets the conditions of bankruptcy.
The law provides for the possibility of official debt restructuring to restore the solvency of a citizen with the subsequent repayment of the debt according to the plan. During the period of this procedure, the sanctions and the accrual of penalties are frozen.
Also, the law No. 127-FZ clearly defines the procedure for action.
The bankruptcy procedure consists of actions
- A citizen with an outstanding debt for three months or more from 500,000 rubles. submits an application to the arbitration court.
- The judge issues a judicial act on the official bankruptcy of an individual.
- A procedure is launched aimed at restoring the rights of creditors.
The first step is to submit a package of documents proving the debtor's insolvency. He does it on his own, and a credit organization and the tax service have the right to file a claim. During the court session, the citizen confirms that he cannot pay the debt obligations and that the situation is not expected to 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 creditors and the actions of collectors is prohibited. The solution of material issues is transferred to a financial 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, which is permissible in the presence of permanent income and no criminal record on economic charges, as well as if the citizen was not previously bankrupt.
- Realization of property. The appointed liquidator assesses the debtor's property, sets deadlines and submits the relevant documents to the court. The only residential property and personal, household items are not subject to sale.
After the submission of the reports to the court, the bankruptcy procedure is completed.
