According to statistics from the United Credit Bureau, the total debt of Russians to commercial organizations is more than 700 billion rubles. Moreover, this figure is growing year by year. This phenomenon has many reasons, but the main one is the financial and economic crisis, which has deprived many of our compatriots of income sources. If loan obligations already significantly exceed the amount of income and it is not possible to repay debts, a citizen can declare himself bankrupt. How to file a bankruptcy of an individual, what is the essence of this procedure?
Grounds
The whole essence and features of the bankruptcy procedure of citizens are reflected in Federal Law No. 476 “On Insolvency”, which was adopted at the end of January 2014 and entered into force only in 2015. How to formalize the bankruptcy procedure of an individual? This question worries many Russians.
According to this legislative act, not all individuals can become applicants for debt relief. How to file bankruptcy of an individual on loans? To do this, several conditions must be met:
- The total debt, together with the accrued fines, has already exceeded the threshold of 500,000 rubles.
- The citizen did not repay the debt for more than 3 months.
- The amount of monthly payments on loans exceeds the amount of income.
- The value of the property of the debtor will not be able to cover the existing debt obligations.
So, a bankrupt is a citizen who does not have sufficient cash and property that he could sell in order to pay off all his debts. If all of the above conditions are met, bankruptcy proceedings can be started.
This law has been amended, so now borrowers can independently file bankruptcy petition for individuals without any active actions of credit organizations. How to get this status?
When the total debt has not yet reached a critical value, the borrower can negotiate with creditors regarding its restructuring. But, if the negotiations were not effective, and the amount of debt is constantly growing, you must go to court. Individuals can declare their financial insolvency in the 30-day period after the moment when they realized that they were not able to make payments on bills. This time is given for finding a financial manager and filing a statement of claim.
Effects
Before filing bankruptcy, you must also familiarize yourself with the consequences of this procedure. Many debtors tend to think that this process is relatively simple and is only formal. However, the recognition of insolvency has rather serious consequences.
During the bankruptcy procedure, the debtor loses his property. All property objects of sufficient value can be realized, and the money from their sale will go to pay debts. After the procedure, the bankrupt will have a bad credit history. And in the future, a citizen is deprived of the opportunity to take loans and borrowings. For all operations to acquire property or securities, as well as major transactions in a 3-year period after recognition of insolvency, it will be necessary to obtain permission from the financial manager. A citizen-bankrupt for 3 years does not have the right to occupy leadership positions and even more so to open his own business.
The duration of the process usually takes six months, at which time the debtor is deprived of the opportunity to travel abroad (sometimes even outside the city), as well as the right to manage his property. All current transactions and operations are frozen, and those that were completed shortly before filing an application with the court are subject to rigorous scrutiny. They are forcibly terminated if experts doubt their legal purity.
What needs to be done before filing a statement of claim?
So, if you decide to file a bankruptcy of an individual, how to file and which documents to prepare for filing an application with the court?
For the application you must:
- Make a list of creditors and debtors (it is also important to specify the details, terms of return and the amount of money, if a bankrupt has debtors, an assignment of claims is made out).
- Issue a certificate of form 2-NDFL at the place of work.
- Get an extract from the PFRF from the personal account of the insured person.
- Make copies of a passport, TIN and SNILS certificates, on marriage, on the birth of children, a work book, a decision on recognizing a citizen as unemployed.
- Get an extract from the USRIP (valid for 5 days).
- Prepare the original documents proving the requirements of credit organizations confirming the right to own property.
- Get a bank statement.
- Get a certificate of extract from the register of shareholders.
Also, before applying, you must:
- Choose a self-regulatory organization and a financial manager.
- Assess property assets.
- Pay the state fee and transfer funds to the court deposit for the work of the financial manager.
- Send notices of the start of bankruptcy proceedings to creditors with the attachment of all copies of the above documents.
Procedure cost
In the question of how to properly file for bankruptcy of an individual, it is important to touch on the material side. The procedure, in essence, involves a large number of costs. Borrowers who have expressed a desire to declare insolvency spend an average of about 40,000 rubles even before the consideration of the case in court. What is there to pay for?
- Services of an appraisal bureau (their price is determined by the sum of the base tariff and 1% of the value of the valued property).
- Notarization of copies (they are necessary both for filing with the court, and for sending notifications to creditors).
- State duty in the amount of 6000 rubles.
- Services of a financial manager (10,000 rubles + 1% of the money earned from the sale of bankruptcy estate).
- Services of a qualified lawyer (drafting a statement of claim, representing the interests of a bankrupt citizen in court).
- Other shipping and postage.
Sequencing
How to file a bankruptcy? What is the sequence of actions of the debtor? First you should consult a qualified lawyer in this process. Since the law was recently issued, it has a large number of unclear points. Usually the first consultation is free.
If you have weighed the pros and cons and decided to go bankrupt, you must write a statement. This can be done both independently and through a lender. Next, you need to prepare a package of the above documents, attach them to the application and file a lawsuit. Insolvency is recognized only in court.
The application must contain the name of the self-regulatory organization that will appoint the financial or arbitration manager. You can also specify a specific candidate who will play the role of manager. Prior to the filing of the application, it is necessary to notify each creditor by mail. After that it is necessary to pay the state fee. You will find the details for payment on the court’s website. Then you can transfer documents to the judicial office (the personal presence of the applicant or agent is mandatory).
Filing a claim
We examined the sequence of actions that involve the bankruptcy of an individual. How to file a bankruptcy petition?
A citizen has the right to submit an application both in print and in manuscript form. The printed version is more preferred. A lawyer, financial manager can act as a proxy who can file an application with a court. Also, the document can be sent by registered mail by mail. The first court session is usually scheduled a month after the submission of the application. This period is necessary for lenders to agree on their claims.
The statement of claim must be filed according to the established model. It should contain three parts:
- Document heading (name of the court and its coordinates, name of the debtor, lawyer, financial manager and name of credit organizations with addresses).
- Basic (information on loans taken, names of banks and credit organizations, documents on the basis of which they were drawn up, the term of the debt and its reasons, size, justification of the impossibility of restructuring, whether attempts were made to pre-trial settlement of the issue).
- Resolution (list of documents attached to the application, request for recognition of the insolvency of the debtor citizen, filing date, signature).
Is there an alternative?
Before filing bankruptcy, you need to think several times about the appropriateness of such a serious step. This procedure has an alternative option - preliminary negotiations with credit organizations and debt restructuring.
The situation is simpler with citizens who owe one bank. In this case, an agreement will be easy. For this, it is necessary to send a letter to the bank in which the situation will be described in detail. For example, if the debtor lost his job due to the liquidation of the organization and asks to freeze interest on the loan. The bank can go to a meeting and offer:
- full deferral of loan payment;
- deferral of interest;
- extension of the loan term;
- change in payment date;
- transfer to another interest rate, currency, type of payment.
In situations where the amount of debt is constantly growing and has already become quite significant, it is best for the borrower to try to get in touch with the bank and request a restructuring. If the borrower does not get in touch, the lenders have the right to initiate enforcement proceedings and bankruptcy proceedings against the debtor, as a result of which the pledged item will be taken from him.
The situation is much more complicated for those who owe several banks. However, there are special lending programs, according to which you can summarize the entire amount of debt, that is, you can combine several debts into one large. It is important that the bank is convinced that the financial difficulties of the borrower are temporary and caused by reasons beyond their control.
Debt restructuring is a more advantageous position for creditors than bankruptcy of an individual. How to draw up a statement on the restructuring of debt at the bank, its staff will prompt. If it comes to legal proceedings, the court may declare the citizen bankrupt or amend the terms of the loan agreement.
How to file a bankruptcy of an individual in front of a bank?
It is no secret that many debtors take loans from banks. How to file bankruptcy of an individual for a bank? This procedure is no different from the standard, which is described above: it is necessary to collect a package of documents and file a claim with the arbitration court. However, it is impossible to declare insolvency exclusively to the bank, because this procedure is applied simultaneously to all creditors.
If there is no property
How to file a bankruptcy of an individual, if there is no property? To do this, you must also contact the arbitration court. The debtor needs to prove that he does not have any property objects. In this case, the court deducts the entire amount of the debt from the insolvent citizen. Moreover, all major property transactions 3 years before the start of bankruptcy proceedings will be checked for legality and legal cleanliness.
What cannot be seized?
Not all property items can be seized and sold during bankruptcy proceedings. These objects include:
- immovable property, when it is the only place for living of the debtor citizen and his relatives;
- clothes, shoes, household appliances, items that are used in everyday life;
- things and property that are necessary for carrying out professional activities or used as a means of generating income when their price is less than 100 minimum wages;
- devices and vehicles necessary for the movement of people with disabilities;
- facilities for household purposes;
- animals, birds, bees, livestock;
- fuel, if it is used for cooking or for heating housing.
Controversial situations
Speaking about the bankruptcy of an individual, how to prepare the necessary documentation for filing an application with the court, it is important to remember that controversial situations may arise during the proceedings. For example, it may seem to creditors that the amount of debt that can be claimed from an insolvent citizen is insufficient. Such controversial situations can serve as a reason for conducting a wide variety of frauds. Therefore, it is best to take the help of a qualified lawyer.
If the amount of debt to creditors exceeded half a million rubles, a citizen can file an application with the court to recognize the bankruptcy of an individual. How to draw up this procedure, its features and consequences, every debtor should know. The Insolvency Law entered into force not so long ago, so it makes sense to seek qualified legal assistance before filing a lawsuit.