Bankrupt citizens and individual entrepreneurs number increased by 65% in Russia in January-September

In January - September 2020, the number of personal bankrupts and bankruptcy entrepreneurs increased by 64.9%, The Bell found out based on the Unified Federal Register of Bankruptcies. Last September, a record number was reached: the courts declared 12,225 Russians financially insolvent, which is 94.6% more than in September 2019.

Over the five years of the program, more than 240 thousand Russians have become personal bankrupt through court proceedings. The procedure costs 100-200 thousand rubles and is not available to everyone. The government recently allowed those whose debt does not exceed 500 thousand rubles to be determined as bankrupt out of court. The 1993 bankruptcy procedure could be applied nationwide.

The number of bankrupt companies, on the contrary, fell due to the moratorium on the bankruptcy of legal entities and in the affected industries (one of the state support measures). Initially, the moratorium was established until October 6 and was extended until January 7, 2021. The applications of companies that waived the moratorium have been canceled and must be resubmitted.

In Bashkiria, in January-June 2020, 1,646 citizens became bankrupt, which is 30.8% more than a year earlier. Among legal entities and peasant farms, only 58 business entities became bankrupt compared to 128 in January-June 2019 (-54%).