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Business Duty Officer

moratorium on bankruptcy: who concerns and what it means for entrepreneurs

moratorium on bankruptcy: who concerns and what it means for entrepreneurs

From the first of April 2022 a moratorium on bankruptcy was introduced throughout the Russian Federation. In accordance with paragraph 1 Art. 9.1 of the Law “About insolvency (Bankruptcy)” The government of the Russian Federation has the right to extend the moratorium, if the measures, for which it was introduced will not be achieved. These measures have been introduced in relation to individuals and legal entities, as well as individual entrepreneurs.

The moratorium was introduced for, so that debtors can correct their difficult financial situation within six months, put all your documents in order and deal with debts without closing the company and without depriving your employees of their jobs.

The moratorium will not affect debtors-developers of apartment buildings and other real estate, built in accordance with the law on shared construction. At the same time, they must be included in the unified register of problem assets..

These measures were introduced after, how unfriendly states imposed sanctions on Russian companies and put a large segment of entrepreneurs in an unpleasant position. This moratorium is designed to save not only thousands of businesses, but not worsen the financial situation of citizens, working in enterprises, who cooperated with unfriendly countries.

At the same time, it is provided, that any person, subject to a moratorium, may declare a waiver of the moratorium applied to him. To do this, the debtor must enter the relevant information in the Unified Federal Register of Bankruptcy Information (EFRSB).

The general rule for all debtors will be that, that during the moratorium:

1) the obligations of the debtor and other persons are suspended, in the context of applying to the arbitration court for recognition of bankruptcy;

2) forfeits/fines/penalties and other sanctions for non-fulfillment or improper fulfillment of debt obligations are not charged;

3) foreclosure on mortgaged property is not allowed, including extrajudicial;

4) enforcement proceedings on property recovery according to the requirements are suspended, occurred before the introduction of the moratorium (at the same time, arrests on the debtor’s property and other restrictions regarding the disposal of the debtor’s property are not removed, imposed in the course of enforcement proceedings). Thus, a moratorium can greatly ease the burden of business, given the imposition of sanctions against many enterprises.

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