The consequences of bankruptcy of individuals in Russia: you can get rid of debts, but …

Krympress reports:

Bankruptcy of an individual is a legal procedure in which a citizen is officially recognized as incapable of fulfilling his debt obligations. This allows you to free itself from a part of debts, but also imposes a number of restrictions — https://kolgan-finance.ru/posledstviya-bankrotstva-fizicheskih-licz/.

So, for example, after bankruptcy, the debtor loses the opportunity to dispose of his property, and all transactions made earlier may be disputed.

One of the key consequences of bankruptcy is the loss of property control. The financial manager takes on the management of the debtor’s assets, including bank accounts, real estate and transport. The exception is only the essential items and the only housing that is not in the pledge.

In addition, bankruptcy imposes temporary restrictions in the field of financial transactions. The debtor cannot take new loans and loans for several years after the completion of the procedure. This can significantly affect the possibility of buying real estate, car or doing business.

A serious consequence is the introduction of bankruptcy data in the register of insolvent citizens. This information becomes available to banks and credit organizations, which complicates the receipt of financial services in the future. Also, bankrupt may encounter refusals in employment in certain areas, especially in the financial and public sector.

Trial and sale of property

The bankruptcy procedure begins with the application of the application to the arbitration court. During the trial, the financial condition of the debtor, the availability of property and the possibility of its sale to repay debts are analyzed.

The first step in the process is the appointment of a financial manager. This person is responsible for the assessment of property, the search for hidden assets and conducting trading on the sale of property of the debtor. The financial manager also analyzes the transactions made over the past three years, and may challenge suspicious operations.

The next stage is the introduction of the restructuring or sale procedure. If the debtor has a source of income, the court may assign a plan for debt restructuring, which allows you to repay part of the debt for a certain period. Otherwise, the property of the debtor is put up for auction.

Debt repayment is carried out in the order of priority established by law. First of all, alimony, salary debts and compensation for harm to health are paid. Then the requirements of banks and other creditors are satisfied.

The final stage is the completion of the bankruptcy procedure. The debtor is either exempted from the remaining debts, or additional restrictions are imposed on it, such as a ban on repeated bankruptcy over a certain period.

Stage	Actions
1. Application of the application	The debtor or creditor submits an application to the court
2. Consideration	The court studies evidence of insolvency
3. Introduction of restructuring	The option of debt restructuring is possible
4. The sale of property	Sale of property for payments to creditors
5. Completion of the procedure	Foundation exemption or imposition of restrictions

Consequences for the property of the debtor

Bankruptcy affects almost all the property of the debtor, with the exception of essential items. In the process of implementation, they can be sold:

• Real estate, with the exception of only housing (if it is not in the pledge).
• Motor transport, if he is not the only means of movement for a disabled person.
• Securities and bank accounts.
• luxury items, including expensive household appliances, jewelry and collectible things.

The debtor’s accounts are arrested, and credit cards are blocked. An exception is social benefits, such as pensions and benefits that are not subject to recovery.

The dispute of transactions is also an important part of the process. If over the past three years the debtor transferred property to relatives or sold it at a low price, such transactions can be invalidated, and property is returned to the competitive mass for sale.

Influence on credit history and financial transactions

The fact of bankrupt declaration negatively affects credit history. Banks and financial organizations note this status in the database, which affects the further possibilities of obtaining loans.

Key consequences for financial transactions:

• Refusal to receive new loans for 5 years.
• Increased interest rates on loans after the end of the restrictions.
• Blocking all current credit cards and refusal to re -release them.
• Refusal of mortgage and car loans for a long time.
• A ban on participating in installment and consumer loans.

In addition, bankruptcy information is saved in the credit bureau for 10 years. This means that even years after the completion of the procedure, the debtor will be difficult to restore his financial reputation.

Restrictions in the professional and social sphere

Bankruptcy is influenced not only by finance, but also on the social and professional life of the debtor. In particular:

• restrictions on work in state institutions and financial organizations.
• The ban on registering a new business for 3 years.
• A ban on participating in legal entities for 5 years.
• Possible difficulties in obtaining visas and work permits abroad.
• A temporary ban on traveling abroad if it is set by the court.

Possible alternatives to bankruptcy

Before applying for bankruptcy, it is worth considering alternative ways to solve debt problems:

• Negotiations with creditors on debt restructuring.
• Voluntary sale of property to repay part of the debts.
• debt refinancing programs in banks.
• Legal consultation for pre -trial disputes.
• debt write -off systems through specialized financial organizations.

Experts emphasize: the bankruptcy of an individual in Russia is a complex legal process with serious consequences. It imposes many restrictions affecting property, credit history, professional activity and social status. Therefore, before making a bankruptcy decision, it is important to study all possible alternatives and get professional legal advice.

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