Bankruptcy through the MFC: what you need to know

Many people choose a simplified procedure

It's worth noting right away that many Russians were expecting this. And now, the time has come. A simplified bankruptcy procedure for individuals is now in place and actively in effect in Russia. Specifically, if a person meets certain requirements, they have the opportunity to complete the bankruptcy process as simply and quickly as possible, eliminating the need to go to court and simply contacting a Multifunctional Center (MFC). Importantly, declaring bankruptcy through a MFC doesn't require significant outlays or the use of a financial manager. The key is to ensure that the outstanding debts are small, allowing bailiffs to find the necessary assets to settle the debt.

What is the essence of the simplified procedure?

Essentially speaking, this is a new and quite popular option for writing off debts for individuals. Its meaning is that a person can get rid of all mortgages to creditors without going to court and without any financial expenses. What should be done? Come to the MFC and submit the appropriate application. Everything else will be done by the state automatically. Next, the citizen will be declared bankrupt, as if he had gone through the procedure through the court.

Who can become bankrupt through the MFC

A simplified solution to writing off personal debt is not available to all citizens, but only if the creditors have already gone to court and submitted the decision to the bailiffs. If there has not yet been a trial, you will not be able to apply to the MFC to declare yourself bankrupt.

What is the procedure for bankruptcy through the MFC

In fact, there are several steps and each one needs to be completed, but most of the work will be done by MFC employees. They will be the ones who will carry out checks, redirect packages of documents, and check for compliance with all existing conditions.

The procedure through the MFC includes the following:

• submitting an application - the applicant writes an application and attaches copies of all necessary documents;
• Carrying out an inspection - within 24 hours, an MFC specialist checks the existence of existing enforcement proceedings. If there are no proceedings, the documents are returned to the applicant. Next time he can apply in a month;
• entry in the EFRSB - an entry must be made in the register of bankrupts indicating that bankruptcy proceedings have been initiated against an individual;
• introducing the necessary restrictions.

All this suggests that an individual is only required to write an application and provide a package of documents.