Our law firm offers support services for personal bankruptcy. We help you examine all the nuances and represent your side in court. To be declared bankrupt, you need to meet only 2 conditions – a debt of 500 thousand roubles or more with payments overdue for 3 months, and a finding of insolvency. If you are successfully declared bankrupt, all obligations to the creditor are discharged.
Benefits for the creditor
This process benefits the lending party if the debtor cannot or refuses to perform their obligations and the options for recovering the debt are minimal. Other advantages for the creditor are also identified:
- the bank writes the problem amount off its balance sheet;
- the matter is governed by law, without the services of debt collectors;
- there is time to assess the situation correctly.
A disadvantage of a borrower's bankruptcy for the creditor is considered to be the risk that other borrowers will evade their obligations in order to gain a benefit. To obtain even partial repayment of the debt, claims must be filed in good time. The creditor must check transactions and establish communication with the financial manager. The latter can sell the person's property, prove that a transaction was invalid, and confirm insolvency so that the debt can be written off.
For an ordinary individual, bankruptcy means that they are partially or fully released from their obligations to the listed creditors. The procedure is beneficial if the individual has no income or property and does not wish to leave their place of residence. The following procedures may be applied to such a person:
- debt restructuring (if the person is employed, the debt can be deducted from their salary);
- sale of property (when the salary is not enough to pay the debt in full);
- settlement agreement and discharge of the debt (if there is no employment or property, and first- and second-priority debts have been repaid).
If none of these measures is applicable, the individual is deemed bankrupt. From that moment, the accrual of charges on all borrowed amounts, fines, possible penalties and interest stops.
Risks of bankruptcy
In addition to the obvious advantages of having the money written off, bankruptcy carries risks:
- all property, apart from the sole residential property owned, is seized and sold to pay the debt;
- a ban on travelling abroad;
- previously concluded real estate transactions may be found not entirely valid;
- a ban on holding managerial positions for 3 years;
- you will have to inform all future creditors of your bankruptcy status in advance;
- the procedure can be repeated only after 5 years.
The law on the bankruptcy of individuals has been in force since October 2015. In a difficult economic situation, you can file a petition to have yourself declared bankrupt. For the procedure to be carried out correctly, taking all the nuances into account, we recommend contacting the best specialists, who will fully assess the situation and help support the process at all stages. You will save time thanks to the work of professionals and receive effective recommendations on reducing risks and costs.
Qualified lawyers will help you understand all the nuances. Experienced specialists know the specifics of the procedure and take an individual approach to each client. As a result, you will certainly achieve the desired outcome.