Pensioners and low-income Russians with incomes of less than two living wages will be able to take advantage of personal out-of-court bankruptcy, even if the bailiffs have not finished enforcement proceedings against them due to lack of property, according to a bill submitted to the State Duma on Thursday.
Such citizens will be able to initiate out-of-court bankruptcy if they do not have the property that can be foreclosed according to executive documents.
The bill (1162228-7) provides for changes to the law "On insolvency (bankruptcy"). Its authors are the deputies Natalya Kostenko, Olga Savastyanova and Ivan Demchenko (the United Russia Party).
Since September 1, 2020, citizens have been given the opportunity to go bankrupt without a trial if, firstly, their debt is 50-500 thousand rubles, and, secondly, the bailiffs previously stopped enforcement proceedings against them due to lack of property.
Due to the latter condition, the out-of-court bankruptcy procedure turned out to be inaccessible to many pensioners and citizens whose incomes are equal to or less than the subsistence level. In respect of them, the enforcement proceedings do not end, since they receive money every month (salary, pension or other income), and the bailiffs partially write off these funds to pay off the debt. This leads to the fact that citizens do not have enough money to meet the minimum needs (paying for utilities, buying food as part of the minimum consumer basket, etc.), which follows from the explanatory note.
The authors of the bill cite Rosstat data for September 2020, according to which the number of Russians with incomes below the subsistence level in the second quarter of last year reached 19.9 million people (up by 1.3 million people compared to the previous quarter).