Since last September, the Social Fund has been helping citizens go through the bankruptcy procedure in a simplified manner, bypassing lots of paperwork. Thanks to interagency requests, the number of statements that Russians acquire on their own has been reduced by 90%.
The entire process has been set up to not require the applicant's participation, through inter-departmental interactions only. Banks and the Tax Service also participate in the information exchange, along with banks and the Bankruptcy Register.
Throughout the entire period, over 327,000 requests regarding individual bankruptcies have been processed with banks. In total, 352 credit institutions are involved in that information exchange. The information is provided to confirm that the conditions for recognizing a person as bankrupt have been met.
Out-of-court bankruptcy procedure is suitable for debtors whose total debt is at least RUB 25,000 and does not exceed RUB 1 million. If the debt exceeds RUB 1 million, then debt-clearing is available only through court, with the involvement of an administrator.