Personal bankruptcy in 2026: how the new law simplifies the “financial restart” and protects debtors

In Russia, the evolution of the institution of bankruptcy of individuals continues. Since the beginning of 2026, a number of amendments have come into force aimed at simplifying the procedure for declaring a citizen insolvent, reducing its cost and expanding access to a “financial restart”. These changes are especially relevant against the backdrop of economic instability, an increase in the population’s credit burden and an increase in the number of citizens who find themselves in a debt hole without real opportunities to repay their obligations.

According to the Unified Federal Register of Bankruptcy Information, in 2025 the number of bankruptcy filings for individuals exceeded 380 thousand — this is almost 20% more than a year earlier. Experts note: the growth is associated not only with the deterioration of the financial situation of citizens, but also with increased awareness of legal ways to get rid of debts.

So what is the bankruptcy procedure for an individual? Let’s talk to the experts about the issue bankruptcy agencies for individuals in Moscow «Bankrupt Consult».

Bankruptcy of an individual is…

Bankruptcy (insolvency) of an individual is a judicial procedure during which a citizen is declared unable to fulfill his financial obligations. The main purpose of bankruptcy is not to punish the debtor, but to give him the opportunity to start life with a clean slate, legally writing off unsustainable debts, while maintaining a balance of interests of creditors.

The procedure is regulated by Federal Law No. 127-FZ “On Insolvency (Bankruptcy)”, which since 2015 allows ordinary citizens, and not just entrepreneurs, to declare themselves bankrupt. However, until recently the process was complex, expensive and bureaucratically overloaded.

New rules for 2026: what has changed?

On January 1, 2026, key amendments developed by the Ministry of Economic Development together with the Supreme Court of the Russian Federation and the Central Bank came into force. Main innovations:

• simplified bankruptcy procedure through the MFC is now available for debt amounts from 50 thousand to 2 million rubles (previously — up to 500 thousand). This allows you to avoid court and an arbitration manager.
• reduction of state duty — from 300 to 100 rubles when submitting an application through the MFC.
• reduction of deadlines — the procedure through the MFC now takes up to 6 months instead of 9-2.
• expansion of the list of property not subject to sale— now not only the only housing and basic necessities are protected, but also rehabilitation equipment for the disabled, pets (provided there is no commercial use), as well as digital assets necessary for work (for example, a laptop).
• introduction of a “debt moratorium”: from the moment of filing a bankruptcy petition, the accrual of penalties, fines and interest on all debts ceases.

These changes are an important step towards the humanization of debt relations,” comments the Bankrupt Consult company. — Previously, many people were simply afraid to go into bankruptcy for fear of losing everything or getting bogged down in a long procedure. Now the state provides a tool that allows not only to write off debts, but also to maintain basic living conditions.

Who can become bankrupt?

According to the law, bankruptcy proceedings can be initiated by:

• the debtor himself, if he cannot fulfill obligations in the amount of 500 thousand rubles (for a judicial procedure) or 50 thousand (for a simplified procedure);
• creditor (bank, microfinance organization, tax office, etc.);
• authorized body (for example, Pension Fund).

An important condition: the delay in payments must be at least three months, and the total amount of debt must exceed the value of the property that can be sold.

However, bankruptcy is not a “loophole” for fraudsters. The law provides for liability for concealing assets, providing false information, or intentionally bringing oneself into bankruptcy. In such cases, the court may refuse to write off debts or even initiate a criminal case.

How is the procedure done? Two ways

From 2026, a citizen can choose one of two paths:

1. Simplified procedure through the MFC

Suitable for those who:

• debt from 50 thousand to 2 million rubles;
• no disputes with creditors;
• there is no property subject to sale (except for those excluded from the bankruptcy estate).

The procedure is completely remote: submitting an application through the government services portal or MFC, publication in the EFRSB, data verification. An arbitration manager is not appointed. Upon completion, all debts (except for alimony, compensation for harm to health and some others) are written off.

2. Judicial procedure

Required if:

• debt exceeds 2 million rubles;
• there are disputes with creditors;
• there is property to be sold.

Stages:

• filing an application with the arbitration court;
• appointment of a financial manager;
• introduction of a procedure for debt restructuring (up to 3 years) or sale of property;
• making a decision on declaring bankruptcy and releasing from obligations.

The judicial procedure is more complex, but also more reliable.experts explain. — Here you have the opportunity to agree with creditors on a payment schedule, save part of your income for living, and most importantly, receive legal protection from collectors and bailiffs already at the stage of filing an application.

What debts are not written off?

Even after bankruptcy, a citizen remains obligated to repay:

• alimony;
• compensation for harm to health or moral damage;
• wages if the debtor is an employer;
• taxes and fees if they are related to intentional bankruptcy;
• fines for administrative and criminal violations.

All other debts — for credits, borrowings, housing and communal services, taxes (in case of bona fide bankruptcy) — are subject to complete write-off.

Consequences of bankruptcy: myths and reality

Many people fear that bankruptcy will ruin their lives for years. In fact, the consequences are limited and temporary:

• ban on re-bankruptcy — 5 years;
• duty to notify creditors about your bankruptcy status when receiving a loan — 5 years;
• inability to occupy leadership positions in companies — 3 years.

However:

• credit history is restored within 1–2 years after completion of the procedure;
• ban on traveling abroad no, unless it was previously imposed by bailiffs;
• only housing, salary (minus 50% maximum) and personal belongings will not be confiscated.

Bankruptcy is not a stigma, but a protection mechanism,” Bankrupt Consult emphasizes. “People often live in stress for years, hiding from calls from collectors, taking out new loans to cover old ones. Bankruptcy breaks this vicious circle. The main thing is to approach it responsibly and with an understanding of all stages.

When should you think about bankruptcy?

Experts recommend considering bankruptcy if:

• the total debt exceeds 500 thousand rubles;
• income is not enough even to pay off interest;
• bailiffs have already seized accounts or withheld more than 50% of wages;
• collectors exert psychological pressure;
• you see no real prospects of paying off your debts in the next 2-3 years.

Important: Bankruptcy does not solve the problem of lack of money, but it relieves the debt burden, allowing you to focus on restoring your financial health.

Alternatives to Bankruptcy: Restructuring and Settlement

There are other options to consider before filing for bankruptcy:

• debt restructuring through court — the court can approve a payment plan for up to 3 years, taking into account real income;
• settlement agreement with creditors — possible at any stage of the process;
• assistance programs from banks — for example, credit holidays or rate reductions (often available in case of temporary difficulties).

However, if the debt is multidisciplinary (banks, microfinance organizations, housing and communal services, taxes), and income is minimal, bankruptcy is often the only effective solution.

How to prepare for the procedure?

1. Collect documents: income certificates, account statements, loan agreements, list of property.
2. Do not make large purchases or transfers over the last 3 years — this can be regarded as a withdrawal of assets.
3. Don’t ignore creditors’ demands — it is better to initiate the procedure yourself than to wait for a claim.
4. Contact a specialist — a bankruptcy lawyer will help you assess the feasibility and choose the best path.

It’s better to spend 5-10 thousand rubles on a consultation than to later lose an apartment or pay endless debts for years, experts advise.

Bankruptcy as a right, not a shame

In 2026, bankruptcy of individuals will cease to be an exotic procedure for a select few. It becomes an accessible, fast and socially approved tool for financial rehabilitation. The state finally admits: a person can end up in a debt trap not due to malicious intent, but due to illness, job loss or crisis. And instead of punishment, he deserves a chance at a new beginning.

Financial failure is not a moral failure, legal experts say. This is a life situation that can and should be resolved in a civilized manner. Bankruptcy is not the end, but the beginning.

Information certificate prepared using portal materials bankrotconsult.ru and expert comments from lawyers, arbitration managers and financial consultants.

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