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Business Duty Officer

moratorium on enforcement proceedings

moratorium on enforcement proceedings

The moratorium is in effect to 1 October in relation to legal entities and citizens. Exception – home builders, as well as persons, acting as foreign agents. In fact, we are talking about a total moratorium, since at the current stage it is difficult to determine the criteria for affected persons.

Applications of creditors to declare the debtor bankrupt, filed with the arbitration court during the period of the moratorium, will be returned by the court. It is forbidden to write off debts: banks can accept writ of execution from courts or bailiffs, but do not have the right to withdraw funds from the accounts of the debtor. During the period of the moratorium, it is prohibited to accrue and collect penalties, fines and forfeits on existing debts.

In the face of sanctions pressure, the moratorium on bankruptcy has become widespread, while the restrictions on penalties under writ of execution were optional. These measures are due to the need to support companies and individuals, whose financial situation worsened. In parallel, there is a privileged moratorium on bankruptcies, which ensures non-calculation of financial sanctions for violation of obligations and suspension of enforcement proceedings on property recovery.

Total moratorium increases the risk of violation of the rights of creditors. Since no further clarification was provided, not only large credit institutions, but also people, who counted on a fair replenishment of working capital, lost the opportunity to recover funds from real debtors by court decision. At the same time, the debtors were in a privileged position..

Prolongation of the total moratorium on enforcement proceedings is inappropriate. If we are talking about the introduction of a simplified system of proof on the part of the debtor of that, that foreclosure will lead to bankruptcy (p. 2 Resolutions of the Plenum of the Supreme Court of the Russian Federation dated 24.12.2020 № 44 "On some issues of application of the provisions of Article 9.1 Federal law dated 26 October 2002 No. 127-FZ “On insolvency (Bankruptcy)”», then such a measure, undoubtedly, would have a beneficial effect. However, in this case, when it is forbidden to write off the debts of citizens and organizations, the creditor is again forced to defend his rights.

It is important to bet on the civilized debt collection market and introduce targeted relief. Total restrictions can provoke illegal actions and the transition of the collection services market to the shadow zone, which is contrary to the goals and objectives of the Government to optimize the business climate in Russia.

 

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