Support The Moscow Times!

Duma Tweaks Bankruptcy Rules

The State Duma’s property committee has proposed to increase the minimum debt threshold enabling individuals to file for bankruptcy to 300,000 rubles ($9,000), in a move expected to benefit lending institutions, a report said Friday.

The measure is outlined in an updated version of a bill on bankruptcy of individuals that lawmakers have sent to the government for approval, Kommersant reported. The initial version that was passed in the first reading in November stipulated that the threshold should stand at 50,000 rubles.

According to the new version of the document, a person filing for bankruptcy will also have to hire a financial manager, whose minimum monthly salary would be at least 10,000 rubles.

The initial version of the bill did not include that measure. This would have resulted in a “paradoxical situation” because the “person who got himself into a poor financial situation would then manage the bankruptcy procedure himself, assessing and selling his own property,” said Sergei Gavrilov, chairman of the Duma's property committee.

But human rights activists argued that hiring a financial manager could worsen a borrower's financial conditions, because the overall pay for those services could ultimately increase the size of the debt.

The bankruptcy procedure lasts for up to two years, bringing the total salary of a financial manager to 240,000 rubles, said Igor Kostikov, head of the financial consumers protection union.

If approved by the government, the new version of the bill will be considered by the Duma in the key second reading in autumn.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more