Bankruptcy risk in Russia is rising, according to a report from Kommersant citing data from the Unified Credit Bureau (UCB).
As of November 2023, nearly one in five debtors in Russia faced the threat of bankruptcy, a notable uptick that highlights growing financial strain. Within this group, about 9.79 million people are now considered at risk, marking an 11% increase in potential defaulters compared with previous periods.
Analysts warn that the trend threatens not only households but also microfinance organizations (MFOs). The data show that by early November, the total debt owed by individuals with loan payments overdue by 90 days or more stood at 6.33 trillion rubles, underscoring the scale of outstanding obligations and the pressure on lenders who serve high-risk borrowers.
Recent regulatory changes have made debt relief options more accessible for many Russians. Since November 3, it has become easier to declare bankruptcy outside the court in certain circumstances. Specifically, a court filing for personal bankruptcy can be initiated when the total debt falls within a defined range, with thresholds now set at not less than 25 thousand rubles and not more than 1 million rubles. This represents a shift from earlier limits, where the minimum debt was 50 thousand rubles and the maximum reached 500 thousand rubles, broadening the range for individuals seeking relief.
In addition, the law accommodates a broader group of borrowers. Citizens and retirees whose only income consists of social payments can initiate a personal bankruptcy case out of court one year after compulsory debt collection begins. For other borrowers, the waiting period remains longer, extending to seven years before a personal bankruptcy filing can be pursued outside the judicial process. These adjustments appear designed to provide a more accessible route to debt resolution for some segments of the population while maintaining protections for creditors and lenders.
Looking ahead, how will wage payments be handled if an employer itself becomes bankrupt? This question remains central for workers and families. When a company encounters insolvency, people often worry about delayed or reduced wages, severance rights, and the continuity of benefits. The evolving framework around bankruptcy, debt collection, and out-of-court settlements will likely shape how workers recover owed compensation and how the broader economy absorbs such shocks.