How much does bankruptcy proceedings for an individual cost? Step-by-step price analysis

What expenses are provided for by bankruptcy law?

The costs of bankruptcy of an individual are directly provided for by Law No. 127-FZ.

The cost of the procedure consists of the following expenses:

• state fee for filing an application;
• remuneration of the financial manager;
• publication of messages about the progress of the procedure on the EFRSB website, in the Kommersant newspaper, and a local newspaper;
• organization of auctions for the sale of the debtor’s property;
• postage;
• Banking services.

Costs for all of the listed items fall on the citizen, who must finance the entire process from his property. Additionally, you may need the services of a lawyer who provides advice, participates on his behalf in court hearings, and performs other assignments.

Stages of bankruptcy of an individual without going to court

Extrajudicial bankruptcy of an individual consists of three stages:

• submitting an application to the MFC;
• making an entry in the EFRSB;
• carrying out bankruptcy without involving the court.

Simplified bankruptcy cannot last more than six months, so all stages go faster than with the participation of the court.

Contacting the MFC

When carrying out a simplified bankruptcy procedure, the application is submitted through the MFC. Attached to it is a list of all known debts, in the prescribed form.

There is no point in keeping silent about any debts or, on the contrary, exaggerating them; all data will be double-checked. If you do not indicate any of the creditors in the application, after the personal bankruptcy procedure, the individual will remain a debtor to them.

Entering data into the bankruptcy register

Within 1 working day, the MFC will check:

• the amounts of debts to creditors indicated in the application;
• whether bailiffs tried to collect debts;
• whether enforcement proceedings have been completed on the FSSP website.

If errors are identified in the data, the MFC will return a statement explaining the reasons within 3 business days. A repeated application can be submitted only after a month.

If no errors are identified during the check, the MFC will enter the information into the EFRSB within 3 working days. After this, the process of bankruptcy of an individual will begin. Information about the start of extrajudicial bankruptcy will be sent to:

• in the FSSP;
• the court at the place of residence of the applicant;
• banks in which the applicant’s accounts and deposits are open.

The accrual of fines and penalties will stop for all debts that were indicated in the application.

Carrying out extrajudicial bankruptcy procedures

If within 6 months after making an entry in the EFRSB, the applicant’s financial situation improves - an inheritance or a lottery win appears, the income can be used to pay off debts. The debtor is obliged to notify the MFC of any financial and property changes within 5 working days from the date of their occurrence.

All creditors who are indicated in the application for extrajudicial bankruptcy may from time to time request information about the debtor from Rosreestr or the tax office. This procedure is provided so that a person cannot hide changes in his financial or property situation.

If within 6 months creditors appear who are not listed in the application, they can sue the potential bankrupt. The creditors listed in the application can also go to court if it turns out that the debtor:

• underestimated the amount of debt and did not meet the limits sufficient for out-of-court bankruptcy;
• hid any property;
• did not send information about the improvement in financial situation to the MFC.

If the court recognizes the creditor's appeal as justified, the out-of-court bankruptcy will be suspended. After this, an individual will not be able to file for bankruptcy out of court for 10 years.

If no violations on the part of the debtor or changes in his income and property occur within 6 months, a confirmation will appear in the Unified Federal Register of Bankruptcy Information. The individual will be given bankrupt status and all debts included in the application will be written off.

What is the state fee for filing an application for insolvency?

When filing an insolvency application, an individual submits to the court a receipt for payment of the state fee for consideration of the case. Without these documents, the application may be left without progress until the mandatory fee is paid. If this is not done, the application will be returned to the citizen.

The amount of the state duty is established by clause 5 of part 1 of Article 333.21 of the Tax Code of the Russian Federation. Individuals pay 300 rubles. Details for paying the mandatory fee can be found at the arbitration office at the debtor’s place of residence.

Bankruptcy procedure for a legal entity

Simplified bankruptcy procedure for a legal entity

What debts will not be relieved by bankruptcy of an individual?

During the bankruptcy process, a person’s debts will not be written off:

• for compensation for harm to life, health, moral damage and alimony;
• for payment of wages and severance pay;
• when brought to subsidiary liability;
• for compensation for losses that were intentionally or carelessly caused to a legal entity of which the person was a participant;
• for compensation for damage to property caused intentionally or through negligence.

Extrajudicial bankruptcy will not get rid of debts either:

• not included in the list of debts to creditors, which was attached to the application for extrajudicial bankruptcy;
• appeared during the period of extrajudicial bankruptcy.

In addition, a person will not be released from debts if any of two circumstances arise:

1. The bankruptcy was recognized as fictitious and a criminal case was initiated on this fact.
2. It was revealed that the applicant had committed fraud, evaded payment of debts, provided false information to creditors, and disposed of or concealed his property.

If you are inattentive to the process or try to mislead the court, you may not only not receive bankruptcy status, but even become accused in a criminal case.

How much should you pay the financial manager?

In accordance with Law No. 127-FZ, the participation of a financial manager in the insolvency procedure is mandatory. From the moment the process starts, he manages the entire process on a professional basis.

The financial manager is appointed by the court from among the candidates of arbitration managers who are provided by the self-regulatory organization of arbitration managers (SRO).

When appointing a financial manager, the court assigns him a fixed remuneration at the expense of the citizen’s property (Article 20.6 of Law No. 127-FZ). The cost of the bankruptcy procedure for individuals is 25,000 rubles. This amount is deposited with the court after the application is submitted as a guarantee that the services of the financial manager will be paid.

A fee is paid to the financial manager at each stage of the insolvency process. Depending on how the procedure proceeds, the citizen will have to pay 75,000 rubles. for debt restructuring, sale of property and settlement agreement.

You should know! The financial manager has the right to receive interest in addition to the fixed remuneration. If the creditors' claims have been successfully repaid and the property has been sold, he is paid 7% of the amount of repaid debts or the value of the property sold as a bonus for his work.

Consequences of bankruptcy without trial

An out-of-court bankruptcy procedure will lead to both positive and negative consequences for the debtor. Most of them are the same as in the trial:

Additional restrictions for a bankrupt are that he will not be able to hold positions in the management bodies of a credit organization for 10 years and 5 years if we are talking about an insurance company.

Cost of publications on the EFRSB website, in the Kommersant newspaper, local newspaper

At each stage of the insolvency procedure, it is necessary to make publications on the EFRSB website, the Kommersant newspaper, and local newspapers.
The cost of publications on the EFRSB website is 860.24 rubles. for each message. The financial manager is required to publish the following information:

• on the introduction of a restructuring procedure;
• on the introduction of an implementation procedure;
• on holding meetings of creditors;
• on challenging transactions;
• on completion of the insolvency procedure.

The final number of publications depends on how the procedure proceeds. In total, a citizen needs to pay about 3,000 rubles for messages on the EFRSB website.

The financial manager also publishes messages in the Kommersant newspaper about debt restructuring, property sales, and auctions. The cost of one message is about 10,000 rubles, in total you need to pay from 30,000 rubles.

When bidding for the sale of a citizen's property, it is necessary to publish a notice in the local newspaper. Depending on the volume of text and the cost of services, you will need to pay from 3,000 rubles.

Costs of organizing auctions for the sale of the debtor's property

Bidding in bankruptcy is carried out only during the procedure for the sale of a citizen’s property. An auction is possible if the debtor has property that can be sold to pay off debts with the proceeds. If an individual does not have movable and immovable things, then the auction is not held.

The auction is organized by a financial manager who uses the services of electronic platforms that have a special certificate. The most popular is the Fabrikant platform, where you can purchase a subscription. For six months you need to pay 20,000 rubles, for a year - 30,000 rubles.

Where can I get the details?

Details for paying the state fee Moscow Arbitration Court - 18.2 KB

Details for paying the state fee Arbitration Court of the Moscow Region - 15.2 KB

On the website of each arbitration court there is a section dedicated to state fees. To find it, you need to go to the official website of the court (type “Arbitration Court” and your region in Google or Yandex).

Where to find court details

• For example, the Moscow Arbitration Court. On the main page, go to the “Process” section. On the page of this section, a list will appear on the left from which you can select the desired subsection.
• Here, an individual can once again check whether the jurisdiction of a given arbitration court extends to the place of its registration by going to the “jurisdiction” subsection.
• To view the court details, you need to select the “details for paying state fees” subsection. Or go to the “Sample payment order” subsection, where you can immediately fill out and print a receipt by filling in the fields with the payer’s information.

There is a state duty calculator on the website my.arbitr.ru for sending documents. Here you can see how much it will cost to file various applications in court, including bankruptcy.

In the calculator you need to select the applicant/plaintiff → “individual” → select the type “application of a non-property nature” → in the list that appears, select “application for declaring the debtor insolvent (bankrupt)”. Next, the amount of the state fee for the arbitration case will be immediately displayed.

How much should I pay for postal services?

At all stages of the insolvency procedure, the citizen and the financial manager send registered correspondence to creditors, various organizations and courts. The average cost of one letter is from 80 rubles.

We list the main letters that must be sent by the debtor and the financial manager:

• application for recognition of insolvency addressed to creditors and the court;
• requests to Rosreestr, traffic police and other departments in order to search for the debtor’s property;
• notifications to creditors about holding a meeting of creditors;
• statements and petitions to courts of general jurisdiction;
• report of the financial manager, statements and petitions to the arbitration court.

A debtor can save on postage costs in case of bankruptcy of an individual if he registers on the My Arbitrator website. Through the portal, all statements and petitions to the arbitration court can be sent electronically.

FAQ

How many times can an individual become bankrupt?

You can obtain bankrupt status once every 5 years, when the procedure is carried out through the court, and once every 10 years, in case of extrajudicial bankruptcy. If we take into account the period for carrying out the entire procedure, the period between bankruptcies will be even longer.

What happens if debts exceed 500,000 rubles and an individual does not file for bankruptcy?

According to the bankruptcy law, the debtor is obliged to file for personal bankruptcy if the debt has reached 500,000 rubles, and he realizes that he will not be able to return it by the deadline established by the contract. If you do not comply with this norm, you will be fined from 1000 to 3000 rubles. It will have to be paid if you file for bankruptcy after the expiration of 30 days or in the case where bankruptcy is initiated by creditors or the Federal Tax Service.

Can a pension, scholarship or any other social benefits be taken away to pay off bankruptcy debts?

All income of the debtor, during bankruptcy proceedings through the court, goes to a single account, which is controlled by the financial manager. If the benefit is the only source of income and it does not exceed the subsistence level, no one will apply for it.

Can guarantors and co-borrowers suffer from bankruptcy proceedings for an individual?

And both the guarantor and the co-borrower will suffer during the bankruptcy procedure. The guarantors are responsible for the debts of the borrower as well as himself, so their income will also be taken into account during the procedure.

Where to find a financial manager to go through bankruptcy through court?

On the website of the Central Bank of the Russian Federation in the registers section there is a list of self-regulatory organizations. There is also a list of all arbitration managers in the form of a pdf file.

Sources:

1. Federal Law “On Insolvency (Bankruptcy)” dated October 26, 2002 No. 127-FZ (latest edition)
2. Register of SROs on the website of the Central Bank of the Russian Federation
3. Unified Federal Register of Bankruptcy Information
4. FSSP website/li>
   State Services Portal debt verification page
5. Appendix No. 1 to the order of the Ministry of Economic Development of the Russian Federation dated August 5, 2015 No. 530 List of creditors and debtors

about the author

Klavdiya Treskova is an expert in the field of financial literacy and investment. Higher education in economics. More than 15 years of experience in banking. He regularly improves his qualifications and takes courses in finance and investments, which is confirmed by certificates from the Bank of Russia, the Association for the Development of Financial Literacy, Netology and other educational platforms. Collaborates with Sravni.ru, Tinkoff Investments, GPB Investments and other financial publications. [email protected]

Is this article useful? Not really

Help us find out how much this article helped you. If something is missing or the information is not accurate, please report it below in the comments or write to us by email