Ministry of Economic Development of the Russian Federation
Ministry of Economic Development of the Russian Federation
The Ministry of Economic Development will ensure that the bankruptcy procedure is accessible and easy for Russians
9 September 2020 12:05

Russian President Vladimir Putin has instructed the Ministry of Economic Development to ensure that the bankruptcy procedure is accessible and easy for Russians and, if necessary, to correct the law.

"We need to ensure the accessibility and ease of use for citizens of this regulatory act. To see how it all works in practice, and make some adjustments if necessary. I ask your Department to do this," the head of state has addressed the Minister of economic development of the Russian Federation Maxim Reshetnikov at a meeting with members of the Government on Wednesday, September 9.

The draft law on simplified out-of-court bankruptcy procedure was developed on behalf of the President of the Russian Federation. First Deputy Prime Minister Andrey Belousov coordinated the actions of state agencies to introduce a mechanism for releasing low-income citizens from bad debts.

In particular, the procedure provides that at first a person comes with a statement to the MFC where he indicates all his creditors, said Maxim Reshetnikov. There, a sheet on the end of enforcement proceedings is checked during the day, and within 3 days this information is entered on a public online resource – the Unified Federal Register of Bankruptcy Information (EFRBI). Further, the MFC notifies credit organizations, the court, and the bailiff service of the launch of an out-of-court procedure. Then creditors are given time to check again whether the person has assets and if not, after 6 months the person is released from accumulated debts.

In accordance with the instructions of the President, the procedure is completely free for citizens who are unable to pay for the usual bankruptcy procedure (services of lawyers, arbitration managers).  

Maxim Reshetnikov also noted that since the adoption of the law on July 31, the regions have promptly worked with MFC consultants, built up work with the courts, the tax service and the bailiff service. Earlier, the head of the Department personally called several regional MFC to check the quality of service. 

"We are now paying great attention to information and explanatory work. So that socially unprotected citizens who find themselves in a difficult situation know about the procedure and can use it to get rid of debts," the Minister stressed.

Maxim Reshetnikov noted that the emergence of the law in the post-COVID period is of great social importance and will help thousands of low-income citizens with a small amount of debt (from 50 to 500 thousand), who find themselves in a difficult situation, to get rid of debt obligations that are beyond their power and to return to normal life.

Дата публикации: September 9, 2020
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