In the past 15-20 years, the bankruptcy law has been repeatedly raised, debated, and again put off the shelf. But two years ago it was signed. Of course, the adoption of the new law will allow many people carrying a huge financial burden to dump it, and the debtor’s financial non-obligation and huge losses incurred by the creditor can act as a counterargument.
Bankrupt individual - what does it mean?
Signed in December 2014 and effective from the beginning of October 2015, the Law on the Bankruptcy of Individuals allows each non-payer who has debts of more than half a million rubles to submit a bankruptcy petition to individuals. As an alternative solution, the legislation provides for the signing of a settlement agreement by the creditor and debtor, as well as the debt restructuring procedure.
Also, this law may apply to citizens registered as individual entrepreneurs. Both the debtor and the creditor can submit an application for bankruptcy of an individual (the sample is located on a stand in court). The main condition that must be absolutely met is the presence of an overdue three-month debt.
After a citizen has decided to become bankrupt, it is necessary to choose a place where he should go. The law provides that the procedure for applying for bankruptcy of an individual is carried out in courts of general jurisdiction. This is if the citizen does not conduct entrepreneurial activity. If, on the contrary, the person registered himself as an individual entrepreneur, then a sample application for declaring an individual bankrupt will be considered in the Arbitration Court.
How to become bankrupt?
The first thing you need to do to start a bankruptcy proceeding is to file a lawsuit. The borrower can apply to a specialized law company, which will prepare documents for him in court and will represent his interests. You can also independently find the bankruptcy petition of an individual (the sample is present on various resources). In the event of the death of the debtor, it may also be declared bankrupt. The application may be submitted by the creditor bank, heirs or an authorized body. In 2015, the debtor is charged with the obligation to independently submit to the court a sample application for declaring an individual bankrupt when he crosses the threshold of a debt of 500 thousand rubles.
Secondly, it must be proved in court that the debtor is really not able to fulfill the financial obligations undertaken. He must be a respectable borrower, who suddenly found himself in a difficult life situation.
During the consideration of the case there is no absolute guarantee that the citizen will be declared bankrupt. If the creditor does not object, an amicable settlement may be concluded. It will be necessary to approve a debt restructuring plan, which will indicate:
- the period in which it is necessary to pay off the debt;
- the amount of money that will be monthly sent to the bank as repayment of debt;
- a fixed amount of money that will remain with the debtor to maintain his life.
Third, if within three years, namely such a period is allotted for debt restructuring, the payables are not repaid, the citizen is declared bankrupt. The same will happen if, with a court settlement reached in court, a debt restructuring plan is not provided within a certain time frame. If debt restructuring is not possible, then collection of overdue debts may be transferred to the property of the debtor.
What is a financial manager?
This position applies only when bankruptcy cases are considered in individuals. A sample application to the court is half the battle. The financial manager is required to be present at its consideration.
The financial manager has certain requirements:
- The presence of higher education.
- Work experience as a leader.
- Passing a theoretical exam for the training of arbitration managers.
- Lack of suspensions for administrative offenses.
- Lack of criminal record.
- The presence of a contract of compulsory liability insurance.
- Making membership and other contributions to SROs.
When a citizen is appointed to the post of financial manager, additional requirements may be presented to him:
- The presence of a higher legal education.
- The presence of seniority in the position of leader in a particular economic sector.
- The presence of several transactions of bankruptcy of individuals, where he was already financial manager.
One of the most important requirements applied to this specialist is his independence from both parties: the creditor and the debtor. The financial manager will be appointed by the court after the bankruptcy petition for the individual is submitted to the court.
How much does the financial management service cost?
The debtor's finance manager has the right to dispose of all property belonging to the bankrupt. Transactions that were completed without the participation of this specialist are invalid. The services of the manager amount to 10,000 rubles, and then after the complete satisfaction of the creditor claims against the debtor, he is paid another 2% of the amount of claims. Payment of financial remuneration rests with the bankrupt.
Once submitted to court a sample of the statement of bankruptcy of an individual, and a verdict was issued on the recovery of property in favor of the creditor, the operation for its implementation starts.
What property can be sold?
The property suitable for sale is movable and immovable property, luxury goods that must be sold at public auction.
They are not entitled to sell household items, personal clothing and shoes of the debtor and members of his family, as well as foodstuffs. If the debtor has cash, it is necessary to leave him the amount of the subsistence minimum, and if he has dependents, count on them too. Do not sell pets and cattle, as well as farm buildings where they are kept. It is unacceptable to withdraw winnings and prizes, received awards, honorary badges, orders and medals for sale. Housing, if it is one in bankruptcy, as well as the land on which it is located, are also not sold.
The law provided for a procedure for contesting transactions for a debtor. Therefore, all of his transactions on the re-registration of his property to third parties can be declared invalid.
Stop debt growth
In order to correctly draw up a document, you need to study its sample. An application for bankruptcy of an individual is not so difficult to draw up. The main thing is that it be considered in favor of the server. If a citizen is declared bankrupt, the calculation of commissions, penalties, interest, fines and other financial sanctions is completely canceled.
The court sends its decision to all established creditors, who must declare their claims within the specified time. This period should not exceed two months. An individual will live with bankruptcy status for 5 years.
False Bankruptcy and Its Consequences
If the debtor decided to cheat and commit a fictitious bankruptcy procedure, then Russian law can punish him with imprisonment for up to 6 years. The same punishment will apply to bankrupts who filed a lawsuit against the bankruptcy case of a physical person. persons who were declared bankrupt but tried to withhold their property.
How many times can you go bankrupt?
It becomes possible to go bankrupt only in case of an emergency, when it is impossible to correct it in a short period of time: there is completely or partially no regular income, and expenses, on the contrary, have been increased. An application for bankruptcy of an individual, a sample of which is presented in our article, can be filed with the court once every 5 years.
The consequences of declaring bankrupt
After a citizen is officially declared bankrupt, he is not entitled to take out loans and borrowings without obligatory notification of credit organizations about his status. After the allotted 5 years have passed, the guarantee for a loan is reduced to almost zero.
When a sample application for bankruptcy of the debtor (physical persons) sued, and the citizen became bankrupt, he is deprived of the right to hold leadership positions in organizations over the next three years. While bankruptcy proceedings are ongoing, an individual does not have the right to leave the Russian Federation. If the debtor managed to collect new debts, after he was declared bankrupt, then he will have to live with them for another 5 years. Now it has become more clear what the bankruptcy of individuals is. A sample lawsuit can also be downloaded from the Internet. But whether it is worth borrowing huge amounts of loans - everyone decides for himself.