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Business Duty Officer

Reforming the institution of bankruptcy is long overdue

Reforming the institution of bankruptcy is long overdue

Yesterday we wrote about, that President Vladimir Putin demanded to deal with the dependence of debtors-pensioners on banks. Member of the General Council of Business Russia, Head of the Expert Center for Criminal Law Policy and Enforcement of Judicial Acts, ambassador “business officer” Ekaterina Avdeeva. Ekaterina Avdeeva believes, that the President of Russia, as always, accurately and wisely noticed the most sensitive situations for citizens.

Credit VS Bankruptcy: how to protect retirees?

– Lending to the elderly is a complex problem. The need to take a loan motivates pensioners, usually, expensive treatment, housing difficulties, helping relatives make large purchases, tuition fees, etc.. Unfortunately, repay principal, interest and additional payments and loan servicing costs for pensioners come from their own pensions and some small income, and they turn out to be hostages of the situation - in a debt hole.

However, it is important, so that banks do not stop issuing loans to pensioners, when they need it, or provided them with social loans. Otherwise, they will go to some microfinance organization, where to get a loan at a bonded interest, or borrow money from illegal lenders, who deceive, provide reverse leasing by misleading and simply take advantage of the need and insufficient financial and legal literacy of this category of persons.

As pointed out by the President, it is important to protect older people from moving into the category of socially vulnerable groups of the population. We believe, that steps will be taken to facilitate the debt relief of such persons, not using the bankruptcy procedure to create even more discomfort for them. In this regard, I would like to note the problematic aspects of bankruptcy.

Reforming the bankruptcy procedure for individuals and legal entities

The President of Russia once again drew attention to the fact, which is very important, so that people can get out of debt. Currently, going into bankruptcy proceedings, face does not fade, and often end up in a hopeless situation, that lasts for years and even decades.

Faces, who made the decision to start life anew, as a result, they experience the hardships of the incorrect behavior of the arbitration manager, who abuses his right and disputes all conceivable and unthinkable transactions. As a result, in the event of litigation, individuals, quite legally interacted with the debtor, compelled to spend money on, to challenge, that they acted in good faith. However, the documents are often no longer preserved..

Reforming the institution of bankruptcy is long overdue. For individuals, it should become a prompt relief from the debt burden, and not the beginning of endlessly long procedures. Now bankruptcies drag on for many years, and the arbitration manager often “absorbs” money, also, misleading and creditor, and the debtor, keeping the latter in a state of legal uncertainty and depriving him of the opportunity to start living from scratch.

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