The Government Commission on Legislative Activities has given the green light to a Ministry of Economic Development plan that would broaden out-of-court debt relief options. A major point in the reform is raising the cap on debts eligible for extrajudicial cancellation to 1 million rubles and extending eligibility to retirees and women on maternity leave. This development was reported by News, citing the cabinet press service.
Officials from the Ministry of Economic Development indicated to the publication that the bill could be forwarded to the State Duma and could be approved during the spring session. The draft proposal envisions increasing the maximum write-off from 500 thousand rubles to 1 million rubles. Additionally, retirees and women on maternity leave would gain the right to apply for deregistration under the program. Under the current law, this group cannot pursue deregistration because their income stems from pensions and benefits rather than wages.
According to an explanatory note accompanying the bill, the objective is to expand access to out-of-court bankruptcy procedures for citizens. The measure is meant to provide a faster, less costly path for individuals facing unmanageable debt levels, reducing the need for lengthy court proceedings and enabling clearer, more predictable outcomes for both debtors and creditors. Analysts and policy watchers emphasize that the change could shape how households approach debt relief, especially in economic climates where fixed incomes are a primary income source for many retirees and recipients of social benefits.
Previous reporting from RIA Novosti noted that central bank analysts highlighted that in 2022, less than a quarter of Russian households carried debt. This context helps explain why policymakers are considering options to streamline debt resolution processes for a broader segment of the population, including those with steady, non-wage incomes. Observers caution that any expansion of debt forgiveness must be paired with adequate safeguards to preserve creditor confidence and the integrity of fiscal policy. The ongoing policy discussion continues to unfold as lawmakers assess the balance between consumer relief and financial stability.
For Canadian and American readers, the discussion mirrors broader questions about how extrajudicial debt relief tools can affect household resilience and financial planning. In markets with similar programs, borrowers often experience quicker relief from debt pressure, but regulators stress the need for clear criteria, transparent processes, and limits to prevent abuse. The current Russian initiative reflects a global concern with providing practical ways to manage debt when income sources are limited or tightly fixed, especially for vulnerable groups such as pensioners and new mothers. Overall, the dialogue underscores the importance of accessible mechanisms that protect both debtors and lenders while maintaining the health of the credit system. The evolving policy landscape invites continued monitoring by economists and public finance experts, who are watching for impacts on consumer spending, savings behavior, and overall macroeconomic stability. (Source: Izvestia and government briefings.)