BGP Litigation counsel Sergey Lisin commented on the changes in the individual bankruptcy proceedings

“In addition, the position of a person that files for his/her bankruptcy is very unstable. The arbitration may refuse to relieve an individual from his/her debts following the procedures conducted,” says Sergey Lisin, BGP Litigation Counsel. “To that effect, it is enough to prove that a bankrupt has acted in bad faith, for example, that he/she has been late to provide any document or that the true objective of his/her petition to court is to escape debts. That is why more often than not the court initially appoints restructuring, extending debt repayment for three years, and then proceeds to sell the petitioner’s property if it is evident that his/her income for that period is not sufficient for repayment.

The experts interviewed have told that bankruptcy in the largest cities costs about 200 thousand roubles.

But, in fact, you put the money at stake just hoping that the court will resolve your problems,” Sergey Lisin says. “This law works for a creditor, not for a debtor. Before that, for example, you owed 2 million roubles, were sued, made your property over to your relatives, and bailiffs could serve a writ of execution on you till the end of time. But the bankruptcy law allows creditors to challenge your recent property transactions closing the door on a debtor.”

The full article (in Russian) is available here: "Будь проще, закон, и банкроты потянутся".