The approach to bankruptcy of individuals is becoming tougher: it has become more difficult for debtors to write off loans
Over the past two years, russian judicial practice in cases of bankruptcy of individuals has changed significantly. Banks are increasingly challenging the cancellation of debts owed by highly indebted citizens, and courts are increasingly supporting creditors by refusing to release debtors from their obligations.
«We are witnessing a growing number of cases where the courts recognize the behavior of debtors as unfair, especially if a person took out loans shortly before bankruptcy, clearly unable to repay them», - said Daria Bekmansurova, head of the department of interaction with republican executive authorities on insolvency (bankruptcy) at the Ministry.
The main reasons for refusing to write off debts are:
- - Deliberate increase in the credit burden before bankruptcy
- - Obtaining loans in case of obvious insolvency
- - Lack of a real purpose for using borrowed funds
- - Attempts to evade existing debts
The Ministry of justice of Tatarstan recalls the need for all participants in the bankruptcy process to comply with the law, emphasizing the relevance of article 10 of the Civil code, which prohibits abuse of law.
«Bankruptcy is not a tool for writing off thoughtlessly accumulated loans, but a mechanism for helping citizens who find themselves in a really difficult life situation», - explains Daria Bekmansurova.
The courts may refuse bankruptcy if they find:
- - The presence of unspecified property to repay debts
- - Disproportionality of income and credit obligations when applying for loans
- - Concealment of information about income or property
- - Questionable transactions: sale of property at an undervalued price, donation of valuables to relatives, unjustified transfers of large sums
Lawyers advise citizens considering bankruptcy to act as transparently as possible and not to undertake questionable financial transactions that may be interpreted as an abuse of law.
We remind you that employees of the Ministry of justice of Tatarstan hold a weekly reception for citizens on bankruptcy issues. Receptions are organized every thursday from 14:00 to 17:00 at the address: Kazan, 124 Khadi Taktasha st.