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Almost twice as many bankrupt Russians

Almost twice as many bankrupt Russians
In January-March 2020, the number of personal bankruptcies in Russia increased by 68% compared to last year. Banks and microfinance organizations fear that the situation will be aggravated by the new law on a simplified bankruptcy procedure without a court.

According to RBC, in just three months 22,4 thousand people became bankrupt in Russia. At the same time, the rate of bankruptcy in the regions is accelerating. Among the leaders in such procedures carried out are Krasnodar and Perm Territories, Novosibirsk and Rostov Regions, as well as Udmurtia, where the number of bankruptcies has doubled. The Far Eastern regions also showed a multiple increase in bankruptcies of citizens and individual entrepreneurs. Kamchatka and Magadan Oblast were especially prominent.

Experts predict a further increase in such procedures if the law on out-of-court bankruptcy proceedings is passed. In this case, an unemployed citizen without property in his property, without savings of more than 50 thousand rubles and debt from 50 to 500 thousand rubles will be able to apply directly to the arbitration manager. They will make a decision on the right to a simplified bankruptcy within ten days, and in a year the citizen, if his financial situation does not change, will be declared financially insolvent. According to analysts' calculations, may become bankrupt in a year from 140 thousand to 300 thousand Russians and individual entrepreneurs. 

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