The Federal Tax Service announced the need for a comprehensive reform of the bankruptcy mechanism.

The press service of the Federal Tax Service of Russia told Izvestia that in order for debt restructuring mechanisms to work effectively, Russian legislation must include not only changes related to pre-trial rehabilitation, but also comprehensive measures to encourage the use of rehabilitation procedures and prevent bankruptcy abuse.

To lend strictly: banks urged not to issue loans to bankrupt customers for 10 years

According to financial organizations, this status covers those who were not going to repay the loan, but what about those who really got into trouble?

According to the ministry, conceptual support for pre-trial rehabilitation initiatives is accompanied by a requirement to clearly specify the procedural deadlines, a list of necessary documents and conditions for making decisions on financial recovery plans. The Federal Tax Service noted that the approved plan should not be knowingly unenforceable, and under certain conditions, judicial overcoming of the position of individual creditors should be possible.

Representatives of the tax service emphasized that all monetary indicators — from signs of bankruptcy to the remuneration of arbitration managers and the size of insurance funds — should be increased synchronously in order to exclude an increase in the income of managers while reducing their property liability.

"Government Bill No. 1172553-7 was developed precisely on this principle and is aimed at comprehensive reform of the bankruptcy institution. It provides for avoiding the liquidation focus, demotivating creditors to use procedures to make a profit at the expense of the bankruptcy estate, as well as increasing the financial interest of arbitration managers in effective work," they noted.

The document, according to the press service, also includes provisions on improving and speeding up bidding, which should increase the effectiveness and transparency of bankruptcy procedures in general.

Read more about the draft amendments to the law "On Bankruptcy" submitted to the State Duma for consideration in the Izvestia article.

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