Russian authorities will simplify the bankruptcy procedure for participants in the special operation.

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The draft law allowing participants of a special military operation to file for extrajudicial bankruptcy has been approved by the government commission on legislative activities. This was reported by the newspaper "Izvestia" citing sources in the government and the Ministry of Economic Development.

Russian authorities will simplify the bankruptcy procedure for participants in the special operation.

25.02.2025

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📝 Summary

The bill allowing participants of a special military operation to file for extrajudicial bankruptcy has been approved by the government's commission on legislative activities. This was reported by the newspaper "Izvestia" citing sources in the government and the Ministry of Economic Development.

Currently, military personnel who have participated in combat operations in the special operation zone can only be declared insolvent through arbitration court. The newspaper article notes that a military member's insolvency can be recorded without a court decision under the conditions that the citizen's debt does not exceed 1 million rubles, and if the debtor does not have any assets that could theoretically be seized. Additionally, a mandatory condition for non-judicial bankruptcy is the registration of an application for the procedure no later than a year ago. Upon approval of the participant in the special military operation, they will be included in a special bankruptcy register. A moratorium will be imposed on their loans. A similar mechanism is currently in place for pensioners and parents receiving child care benefits. This option can also be utilized by citizens who do not have the means to repay debts for over 7 years.