18:41, 13 September 2021 Page views 791 views

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Banks propose prohibition of bankruptcy for citizens submitting false information

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Сitizens who submitted false information when applying for extrajudicial bankruptcy procedure will have no right to re-apply for bankruptcy within 5 years.


This was proposed by the banking community, the Izvestia newspaper writes with reference to the opinion of the National Council of Financial Market (NCFM) on the draft law prepared by the Ministry of Economic Development.

The measure can be applied if the citizen's abuse has led to the unjustified launch of an extrajudicial bankruptcy procedure against him and its subsequent termination, the opinion says.


This will supposedly stimulate law-abiding and conscientious behavior of citizens.


The banking community finds unreasonably short the one-month period, after which a citizen may re-apply for extrajudicial bankruptcy in case of return of a previous application. This increases the burden on the Multifunctional Public Services Centers (MFC) and lenders, the document says. The NCFM proposes a six-month period to be established for re-filing an application.


The Ministry of Economic Development of the Russian Federation told the newspaper that the financial market participants have no reason to worry, and also called inexpedient the idea of ​​dismissal from extrajudicial bankruptcy for lying.


Besides, the financial market participants did not support the idea to increase the debt amount limit allowing the debtor to apply for extrajudicial bankruptcy, from the current 500 thousand to 1 million rubles, the NCFM document says.

The banking community believes that doubling the threshold could lead to releasing the debtors from significant value of liabilities and their abuses, which will worsen the position of lenders.


Source: Izvestia