EXTRAJUDICIAL BANKRUPTCY OF CITIZENS: INNOVATIONS IN LEGISLATION

Proposals that the procedure for bankruptcy of citizens should be simplified and made more accessible have been actively discussed in the State Duma since September 2019. In March 2020, the President of Russia instructed the Government of the Russian Federation to promptly resolve the issue and on July 31, 2020, the law was signed. On September 1, 2020 the innovations came into force, and it would seem that extrajudicial bankruptcy should have made life easier for the heavily indebted persons. If the period of falling incomes of enterprises and citizens continues against the background of COVID-19, the share of overdue debt will grow. Consequently, this may lead to the fact that in 2021 some of the borrowers will go bankrupt in masse. Despite the demand for this institution, the provisions on out-of-court bankruptcy of individuals are imperfect and require improvement. It seems that this research topic is relevant today both scientifically and practically. The purpose of the article is to analyze the characteristics of the institution of bankruptcy of a citizen according to the Russian legislation and identify problems of legal regulation. The structure of the study is determined by the purpose, objectives and includes an introduction, the main part, conclusions, and bibliography. In the main part of the article, the legislation governing the insolvency (bankruptcy) procedure of a citizen is analyzed, some procedural issues are disclosed. In addition, the problems of improving the arbitration management mechanism, the rights and obligations of a debtor citizen are considered, the advantages and disadvantages of the bill in terms of extrajudicial bankruptcy of a citizen are revealed. The author draws attention to the need to eliminate some problems by improving the regulatory framework.

bankruptcy of individuals, insolvency, debt, arbitration manager, arbitration court, debtor, creditor, out-of-court procedure, summary proceeding, pandemic, credit, MFC.

Sagitova I. F. Extrajudicial bankruptcy of citizens: innovations in legislation. Business. Education. Law, 2021, no. 1, pp. 301—305. DOI: 10.25683/VOLBI.2021.54.176.