Russians can now declare themselves bankrupt

Russians can now declare themselves bankrupt

A law on personal bankruptcy came into force in Russia today. This document allows a citizen with total debts of more than 500,000 rubles and over three months of missed payments to file for bankruptcy.

The law gives a citizen the right to file for bankruptcy, regardless of the amount of debt. To obtain this status the citizen has to prove in court his inability to pay the creditor. The bankruptcy trustee will sell property to pay creditors.

The Ministry of Economic Development still finds it difficult to predict how many people may file for bankruptcy, the Finance Ministry doesn't rule out a large number. Russian Deputy Finance Minister Alexey Moiseev said that there will be many such people.

According to the United Credit Bureau, the number of people formally subjected to the law has grown since the beginning of this year by half, to 460 thousand people.