The Supreme Court refused to write off the debts of a Russian citizen who had accumulated ten loans

The Supreme Court of the Russian Federation refused to write off debts to a Russian who took out loans from eight banks, pointing out that he took advantage of the delay in updating information about loans from credit bureaus and did not disclose the true purpose of receiving funds, which deprived creditors of the opportunity to assess risks. This became known on May 28.

It is specified that the sum of ten consumer loans of a Russian citizen amounted to 7.4 million rubles, which he took out in one week in September 2022. For some time, the citizen paid off the loan, but after his dismissal he initiated bankruptcy proceedings.

The creditor banks advocated the preservation of the Russian's debts, and the Supreme Court accepted their position, refusing to write off loans to the debtor.

"By itself, applying for loans in a short time to different banks "does not indicate dishonesty," however, in this case, a bona fide borrower must report this, otherwise the lender will lose the opportunity to "objectively assess the risks," the agency quotes Kommersant.

As Mikhail Alekseev, a lawyer and head of the representative office of the Self-Regulatory Organization (SRO) of arbitration managers, told Izvestia, an unscrupulous debtor will not be able to go through the bankruptcy procedure of an individual.

"Bankruptcy of an individual is not suitable for crooks. That is why judicial practice interprets when you take out microloans, specifically hoping not to repay, and these circumstances are revealed, then such debts are not subject to cancellation," said Alekseev.

According to him, when deciding on bankruptcy, the court takes into account possible cases of fraud, but the debtor needs to prove his good faith one way or another.

"Debt cancellation is a matter of proof, an adversarial process. If it is established that you took the money and, excuse me, spent it on sitting in a cafe, you need to understand that this often ends up not writing," the lawyer noted.

He stressed that you should not trust ads that suggest improving your credit history.

"You can't improve it, you can just pay better. It's ruined in one way or another if you didn't pay. Nevertheless, the bank, any lender, systematically evaluates how much a person has repaid [the debt], what his situation is now, what his workload is now," the lawyer concluded.

If it takes, it won't: the overpayment on the market mortgage exceeded 10 million rubles

Why is the average bill for housing loans and their duration breaking new records, despite unfavorable rates

On May 26, the United Credit Bureau (OKB) reported that the average term of cash loans in Russia decreased in April by 11 months compared to April last year, from 2 years 10 months to 1 year 11 months. The average loan amount decreased by 20% over the same period, from 213,000 to 170,000 rubles.