Bankruptcy

If your monthly loan, credit, or debt payments exceed your income, and your overdue payments have continued for more than three months, it’s wise not to accumulate penalties and interest charges. Instead, consider initiating bankruptcy proceedings. This legal process allows for the discharge of unmanageable debts and gives you a fresh financial start. Since 2019, Russian legislation has made bankruptcy more accessible and transparent for both individuals and legal entities.

Bankruptcy for Individuals

Legal support from a bankruptcy lawyer for individuals may be required in the following cases:

Private individuals. If you are facing serious financial hardship due to job loss, illness, or other circumstances and can no longer meet your financial obligations, you have the right to file for personal bankruptcy. This allows you to legally discharge debts owed to banks, microfinance institutions, utility services, the tax authority, and other creditors.

Sole proprietors (individual entrepreneurs). Unlike companies, individual entrepreneurs in Russia are personally liable for their debts, including unpaid taxes and pension contributions. Bankruptcy for sole proprietors is a legal method to write off debt and protect assets from aggressive creditor claims.

Creditors. If a creditor initiates bankruptcy proceedings against an individual, they gain the right to challenge any suspicious transactions the debtor made within the past three years. This can include property gifted to family members or sold below market value, and allows creditors to recover these assets.

Bankruptcy for individuals is a relatively new process in Russia, and not all attorneys have real courtroom experience. That’s why choosing an experienced law firm is essential for a successful outcome.

Bankruptcy for Legal Entities

Corporate bankruptcy is applicable when a company is unable to meet its obligations to suppliers, contractors, government agencies, or employees. When debts accumulate and the company’s solvency declines, bankruptcy becomes not only a method of liquidation but also a tool for protecting business assets and management from personal liability.

The main signs of bankruptcy for a legal entity in Russia are:

  • Debts of at least 300,000 rubles

  • Overdue payments for more than 3 months

  • Inability to fulfill tax obligations, pay salaries, or service loans

Bankruptcy of an LLC or other legal entity is a judicial process handled exclusively in an arbitration court. A bankruptcy lawyer is required to oversee each stage—from drafting the initial petition to managing the liquidation of assets.

Bankruptcy Legal Services

Comprehensive legal support for bankruptcy includes the following:

  • Legal consultation and analysis of your situation

  • Preparing the claim and submitting documents to the arbitration court

  • Representing clients in court (creditors or debtors)

  • Negotiating with creditors

  • Establishing and verifying creditor claims

  • Contesting fraudulent or suspicious transactions

  • Working with the court-appointed bankruptcy trustee

  • Challenging unlawful actions or inaction by the trustee

  • Drafting and negotiating settlement agreements

  • Representing clients at creditors’ meetings

  • Full legal supervision of the bankruptcy procedure

Please note: bankruptcy for individuals and legal entities are two distinct legal procedures with different rules, timelines, and legal approaches. In both cases, professional legal support is critical to a successful resolution.

Why Choose DTK Partners?

The bankruptcy lawyers at DTK Partners have years of successful experience representing clients in Moscow and across Russia. We work with individuals, sole proprietors, businesses, and also represent creditor interests.

Our advantages:

 

  • Tailored strategy to minimize financial risks

  • Assistance in preparing claims and recovering debts

  • Legal audit of transactions made within the last three years

  • Independent asset valuation

  • Full representation in court and before the bankruptcy trustee

  • Defense against illegitimate creditor claims

  • Exit strategies from bankruptcy with minimal losses

We work with trusted appraisers, financial analysts, auditors, and certified bankruptcy trustees. Our team handles bankruptcy cases from start to finish, ensuring a transparent, compliant, and effective process