The arbitration court will consider three personal bankruptcy cases

On October 1, the law on personal bankruptcy came into force in Irkutsk Oblast, and on the first day three petitions were filed with the arbitration court. The new procedure allows citizens under certain conditions to suspend debt collection, but it also imposes serious restrictions and does not exempt them from selling property to pay the debt.

On October 1, the law on bankruptcy of individuals came into force. On the first day, 3 cases were received by the Arbitration Court of the Irkutsk Region. All 3 petitions to declare citizens bankrupt were filed with the arbitration court on October 1. Judges have been assigned to each of the cases.
The three petitions have already been published in the court’s case database, which is publicly accessible online.
As reported by the Arbitration Court’s press service, on the very first day we received three cases concerning the declaration of bankruptcy of individuals. Whether petitions were filed today is not yet known, but we expect that they will be.
To clarify, the new law on bankruptcy of individuals allows for the temporary suspension of justified collections on personal debts for several years.
The procedure for declaring a citizen bankrupt can be initiated if the amount of his debt exceeds 500,000 rubles and the debt is overdue by more than three months.
If a person declares himself bankrupt, he will not be able to independently carry out any transactions, open or close bank accounts; leaving the Russian Federation is also prohibited.
For three years, a citizen declared bankrupt cannot hold positions in the management bodies of a legal entity, or otherwise participate in the management of a legal entity.
Previously, only a person with the status of an individual entrepreneur could declare himself bankrupt. Now this is available to all citizens. It should be noted that fictitious or deliberate bankruptcy is punishable by law. Declaring an individual bankrupt does not cancel the fact that his property will be sold off to cover the debt. Such a procedure only provides some reprieve so that the debtor can improve his financial situation.