Personal bankruptcy support in Moscow: services of attorney Yuriy Arutyunov
The procedure for declaring an individual financially insolvent is launched only if the strict statutory criteria established by Federal Law No. 127-FZ are met. The minimum debt threshold is 500,000 roubles, and regular payments must be overdue by more than 90 days. The second key factor is objective insolvency, where monthly income and liquid assets do not allow even 10% of the monthly obligations to creditors to be covered. A good attorney, Yuriy Arutyunov carries out a detailed financial audit at the consultation stage in order to rule out refusal to accept the petition due to formal inconsistencies.
An attempt to gather the documents on your own often leads to the claim being returned by the Moscow Arbitration Court because the set of documents is incomplete or the calculations contain errors. Hiring an attorney at this stage means avoiding lost time and additional state fee expenses. The attorney's legal assistance includes checking all loan agreements, 2-NDFL income certificates, account statements and the register of claims. Attorneys' cases show that more than 40% of refusals are related to an incorrect justification of insolvency. The attorney's services in court begin with building a convincing body of evidence, where every certificate and agreement is analysed for hidden reserves.
How an attorney determines a client's actual insolvency
The specialist requests data from the credit history bureau, the State Traffic Safety Inspectorate (traffic police), Rosreestr and the Pension Fund, building a complete picture of the assets. If deposits or securities are found, the attorney for a legal entity or an individual recommends selling them before the petition is filed. The attorney's consultation lasts from 1.5 hours and covers the possible scenarios of how the case may develop. Without a professional assessment, the client risks a refusal and a ban on refiling for a year.
Why the debt must be 500 thousand or more: an explanation of the statutory rules
The legislator set this threshold to filter out small debts that can be resolved through enforcement proceedings. Attorneys for legal entities note that corporate debts below the threshold are resolved through simplified bankruptcy, but for individuals the amount is fixed. The attorney's legal services include calculating the exact amount, taking into account interest, fines and penalties as at the date of filing.
The petition is filed exclusively with the arbitration court at the debtor's place of permanent registration. In Moscow, this is the Moscow Arbitration Court on Bolshaya Tulskaya Street. The attorney prepares an electronic filing via the "My Arbitrator" (Moy Arbitr) system, which speeds up registration of the case. Without an attorney's services in court, the client has to certify copies and pay for publications in the Unified Federal Register of Bankruptcy Information (EFRSB) on their own.
Stages of the bankruptcy procedure: detailed support from an attorney at every step
After the petition is accepted, the court introduces one of three possible procedures, the choice of which is determined by the financial manager together with the attorney. Debt restructuring is applied where there is an official income above the subsistence minimum for each family member. The plan is calculated for a term of up to 3 years, with the monthly payment not exceeding 50% of the salary. A good attorney ensures that only priority creditors are included in the plan, excluding bank fines.
Restructuring: how an attorney protects the client's income
The specialist challenges inflated creditor claims, reducing the total amount by 20-30%. Attorneys' cases demonstrate successful examples where penalties for late payment on credit cards were excluded from the plan. The attorney's legal assistance extends to negotiations with banks on a fixed rate for the restructuring period.
Sale of property: what is sold and what the debtor keeps
In the absence of a stable income, the sale of property is introduced. The sole residential property is protected by the Constitution of the Russian Federation unless it is mortgaged. Attorney Yuriy Arutyunov ensures that household items worth up to 10,000 roubles per item are excluded from the bankruptcy estate. A car is retained if it is needed for work and is worth less than 1 million roubles.
List of property protected from sale:
- Sole residential property (except mortgaged property)
- The land plot under the sole residential property
- Household items worth up to 10,000 roubles
- Tools for professional activity
- Pets and seeds for sowing
Hiring an attorney is critically important at the auction stage, where the specialist controls the starting price of the lots. Without an attorney's legal services, property may go for 50-60% of its market value.
Settlement agreement: when an attorney helps to conclude the case early
If, in the course of the sale, the creditors see a prospect of partial repayment, the attorney initiates negotiations on a settlement. The document is approved by the court and terminates the procedure. The attorney's consultation helps to assess whether such a step is advisable, especially where there are hidden assets.
Benefits for the debtor: full debt discharge with an attorney's services in court
The completion of a personal bankruptcy procedure opens a new chapter in the individual's life, fully releasing them from the burden of accumulated obligations. When the arbitration court issues a ruling on the completion of the sale of property or on recognising the restructuring plan as unfeasible, from that exact moment any accrual of interest on loans, penalties, fines and forfeits stops. A good attorney, Yuriy Arutyunov ensures that the court ruling is drafted as clearly as possible, leaving no loopholes for subsequent claims. The attorney's legal assistance at the final stage includes obtaining the writ of execution and submitting it to the Federal Bailiff Service (FSSP) to close all proceedings. The debtor obtains complete freedom from the claims of banking institutions, microfinance companies, tax authorities, housing and utility services and even private lenders whose loans were notarised.
What exactly is written off: a detailed breakdown of debt categories
After the financial manager's report is approved, all outstanding amounts are cancelled irrevocably and without the right of reinstatement. This applies to consumer loans, credit cards with an overdraft, loans secured by a vehicle title (PTS), payday microloans and even debts under promissory receipts. Even mortgage obligations are fully discharged if the mortgaged residential property was sold in the procedure — the remaining debt to the bank is written off. An attorney for a legal entity pays particular attention to checking corporate guarantees and suretyships so that claims under them do not enter the register. The attorney's consultation identifies in advance which debts will definitely be written off and which will require separate settlement.
Debts that are written off in full:
- Loans from Sberbank, VTB, Alfa-Bank and other systemically important banks
- Loans from microfinance organisations such as "Dengi Srazu", "MigCredit"
- Tax arrears on transport tax and land tax (except current ones)
- Utility payments for the last 3 years
- Traffic police fines, court costs in civil cases
Exceptions to the write-off: what remains and why the attorney singles them out
The law preserves liability for debts connected with the identity of the creditor. Alimony obligations to children or former spouses remain in full. Compensation for harm caused to life and health and compensation for moral damage in criminal cases are also not subject to write-off. A good attorney ensures a clear separation in the register of claims so that these amounts are not mixed with ordinary loans. Attorneys' cases show that without professional separation, creditors try to "tie" ordinary debts to the exceptions through sham claims.
Restrictions after bankruptcy: real consequences for 3-5 years and strategies for minimising them
The legislation introduces temporary restrictions to prevent abuse of the procedure. The ban on holding managerial positions in legal entities applies for exactly 3 years from the date of completion of the procedure. This concerns the positions of chief executive officer, chief financial officer and chief accountant. Mandatory disclosure of bankruptcy status to potential creditors is required for 5 years for any new borrowing over 100,000 roubles. Repeat bankruptcy is possible no earlier than after 5 years for the standard procedure and 8 years for the simplified one.
How attorneys for legal entities help to get around the restrictions lawfully
Attorneys for legal entities develop arrangements for transferring management to trusted persons by issuing a general power of attorney. Setting up a new company with a nominee director while retaining actual control makes it possible to continue the business. Hiring an attorney for such a restructuring means avoiding criminal liability for fictitious bankruptcy. The attorney's legal services include registering as an individual entrepreneur instead of an LLC to minimise the restrictions.
Practical consequences of the restrictions:
- Inability to become a founder of an LLC with a share >50%
- Mandatory "has been bankrupt" note in bank application forms
- Restrictions when obtaining visas to the USA and Canada (explanations required)
- Ban on participating in procurement under Federal Law No. 44-FZ as a manager
Risks of the procedure and how an attorney minimises them: professional protection at all levels
The main risk remains the challenging of transactions over a look-back period of 3 years. The financial manager is obliged to check all transactions involving property worth over 300,000 roubles. Attorney Yuriy Arutyunov carries out a preventive audit 6 months before the petition is filed, identifying suspicious transfers. If a flat was gifted to a relative 2.5 years before the bankruptcy, the attorney prepares evidence of the market price and actual payment.
Oversight of the financial manager: the attorney's key role in selection and interaction
The specialist agrees on the candidacy of a manager from trusted self-regulatory organisations (SROs) at a rate of 25,000 roubles per month. Without an attorney's services in court, the client gets a random manager who may drag out the procedure to 12-18 months through additional checks. A good attorney establishes weekly monitoring of reporting and responds promptly to requests.
Mechanisms for overseeing the manager:
- Monthly reconciliation of bank statements
- Approval of each lot for auction
- Verification of the appraised value of property
- Challenging understated sale prices
Ban on travelling abroad: when it is imposed and how it is lifted professionally
A travel restriction is imposed on the motion of a major creditor where the claims exceed 1 million roubles. A good attorney secures the lifting of the ban by submitting evidence: medical certificates on the need for treatment abroad, an employment contract with a foreign employer or documents concerning the funeral of a close relative. The attorney's services in court include filing a motion on the same day the bailiff's order is received.
Additional risks and how to prevent them:
- Subsidiary liability of founders — an attorney for a legal entity checks corporate documents for any grounds
- Criminal prosecution under Article 195 of the Criminal Code — the attorney's consultation identifies the risks of the bankruptcy being deemed fictitious in advance
- Publication in "Kommersant" — the attorney minimises negative publicity through PR support
Hiring attorney Yuriy Arutyunov means obtaining comprehensive protection against all possible risks, with a guarantee of debt write-off in 98% of cases. The attorney's legal assistance turns a complex procedure into a managed process with a predictable result.