As of the latest update, Russians may find it somewhat easier to declare bankruptcy under specific debt thresholds. Individuals can file for bankruptcy when their debt falls within a defined range, with the updated federal regulation applying to cases where the debt is not less than 25 thousand rubles and not more than 1 million rubles. This adjustment expands access to bankruptcy relief, aligning practical eligibility with contemporary economic realities and administrative capacity, as reported by TVNZ. The change marks a noticeable shift from earlier limits and is expected to influence decisions for both personal debtors and financial institutions involved in debt collection processes.
Previously, the minimum debt threshold stood at 50 thousand rubles and the maximum at 500 thousand rubles. The ladder of eligibility now includes a broader spectrum of indebted individuals, potentially reducing the number of informal settlements or prolonged, unresolved debt situations. The reform reflects a broader policy aim to streamline the relief framework, making bankruptcy options more accessible while maintaining safeguards to protect creditors and ensure orderly resolution of financial obligations.
In addition to the adjusted monetary thresholds, the law specifies distinct timelines for different groups. Citizens and retirees whose only income is social payments can initiate a personal bankruptcy case without court involvement after one year from the start of compulsory debt collection. For other citizens, the waiting period remains longer, at seven years, before bankruptcy protection can be pursued. This differentiation acknowledges varying income structures and the practical impacts of debt on daily living, balancing compassionate relief with the need to maintain credit discipline and fiscal responsibility within the economy.
Under certain circumstances, individuals may declare bankruptcy outside of court at no cost. The process in such cases requires submitting an application through the Multifunctional Center (MFC), which serves as a public access point for many administrative procedures. Data from Fedresurs, the Unified Federal Register of Bankruptcy Information, indicates a substantial uptake of this relief option since early 2023. Roughly a quarter of a million Russians have been declared financially bankrupt through various channels in that period, representing a meaningful share of the total cases observed over the preceding seven years. By September, the cumulative number of filings and outcomes suggested a continuing trend toward increased utilization of bankruptcy mechanisms, with tens of thousands proceeding through court processes as needed to finalize resolutions.
These developments also touch the broader landscape of compensation and salary disbursement when a large employer or employer group faces insolvency. The question of how salaries will be paid in such scenarios has been a subject of discussion, particularly regarding the protection of workers who may be affected by corporate restructuring, liquidation, or bankruptcy. The evolving framework aims to provide clearer guidance for employees, creditors, and social support systems, helping to stabilize income flows while the legal and financial systems adjust to the new thresholds and procedures. Overall, the reform represents a shift toward more transparent, accessible, and humane handling of personal debt, within a regulated structure designed to support both individuals and the wider economy during periods of financial stress.