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- Mountains of debt: the number of personal bankruptcies has doubled in the North Caucasus
Mountains of debt: the number of personal bankruptcies has doubled in the North Caucasus
In Dagestan, Chechnya and Kabardino-Balkaria, the number of bankruptcies of citizens doubled last year, according to data from the Federal Resource. In Russia as a whole, the default rate jumped by a third to a record 568 thousand. The multiple growth in the North Caucasus is associated with the high level of creditworthiness of the population, the spread of microloans and aggressive advertising campaigns that promise rapid debt relief. What alternatives the debtors have is in the Izvestia article.
The Caucasus has become a point of bankruptcy growth
Residents of the North Caucasus have become much more likely to go bankrupt. In Dagestan, the number of defaults jumped by 109% to 10,000 last year, in Chechnya — by 101% to 3.8 thousand, and in Kabardino-Balkaria — by 94% to 4.6 thousand procedures. This follows from the data of the Federal Resource, which was analyzed by Izvestia.
Growth was also significant in several other regions of the country. For example, in Voronezh (by 78%), Kirov (71%) and Tambov regions (68%), as well as in Yamalo-Nenets Okrug (63%). In Russia as a whole, the number of bankruptcies of citizens and sole proprietors increased by almost a third, to 568 thousand.
Bankruptcy is a legitimate way to write off debts if a citizen cannot repay them. The judicial procedure is conducted through arbitration. It is usually suitable for those who have a debt exceeding 500 thousand rubles, and the delay is more than three months. The service is paid and takes about 6-9 months. After completion, the debts are written off, but there are restrictions (for example, you cannot hold senior positions for three years, and you can go bankrupt again for five years). Out—of-court bankruptcy is a free simplified procedure through the IFC. It is available for the amount of debt from 25 thousand to 1 million rubles and provided that bailiffs have already closed enforcement proceedings for lack of property. The procedure lasts six months and does not require the participation of a financial manager or a court. However, it is not suitable for everyone — only for those who really have neither income nor property.
Experts believe that the key reason for the regional surge in defaults is the structure of lending to the population. Microloans with extremely high maintenance costs are widespread in the Caucasian regions, explained Yulia Kovalenko, Deputy Head of the Higher School of Economics of Moscow Plekhanov Russian University of Economics.
According to her, the rates on them can reach almost 300% per annum, which turns the financial burden into a critical one. The safe level of obligations should not exceed 40% of income, however, many borrowers do not calculate the real burden when applying for loans and cards, the expert added.
It also plays a role that a significant part of citizens did not take into account the impact of monetary policy on the cost of loans, said Nina Gukasova, director of the program for improving financial literacy at the IGSU RANHIGS. According to her, people applied for loans in the era of high interest rates, hoping for their subsequent reduction, but the rising cost of money made payments unaffordable.
Law firms offering full support services for debt cancellation also played a significant role in the growth of bankruptcies. The press service of the National Association of Professional Collection Agencies (NAPCA) reported that aggressive advertising of such companies creates a misconception among citizens about the simplicity of the procedure.
Many borrowers perceive bankruptcy as a quick way to get rid of obligations without serious consequences, although in practice the procedure involves restrictions on obtaining new loans and financial management, the association stressed.
The impact of "debtors" is difficult to express in exact numbers, but without their marketing, a significant part of debtors simply would not have known about the existence of the procedure. At the same time, the low percentage of refusals to write off loans following bankruptcy proceedings — about 1.2% — indicates that most cases are related to a real debt burden, said Ahmed Yusupov, partner at the Goldmann Agency communications agency.
The North Caucasus is also experiencing a low base effect: A few years ago, bankruptcy was perceived here as a rare legal procedure and actually a social taboo, Akhmed Yusupov said. The turning point was 2023-2024, when federal legal networks actively entered regional markets and began to massively promote debt cancellation services, he added.
An additional factor was the entry into force of Law No. 111-FZ, which allowed ITS participants to undergo simplified out-of-court bankruptcy through the IFC. A significant proportion of participants in the special operation in the regions of the North Caucasus directly affected the increase in the number of procedures, the expert said.
Why restructuring is rarely carried out
Alternatives to bankruptcy exist and begin with negotiations with the creditor, the NAPCA said. Professional debt collectors apply restructuring — reduction of monthly payments, debt discounting and credit holidays, thanks to which last year more than 800 thousand Russians were able to repay overdue debts in the amount of about 50 billion rubles.
Director of Customer Service and Collection at Dom Bank.Kirill Malinovsky said that lenders offer refinancing, deferrals of up to a year and individual support programs to clients. According to him, even in conditions of high key interest rates, it is often possible to find a solution without bankruptcy proceedings.
Sberbank added that it uses a unified approach to support borrowers across the country and does not record significant regional differences in the dynamics of delinquency.
Despite the availability of alternatives, most debtors choose bankruptcy. In 2025, the number of debt restructurings increased 2.3 times to 3,129 cases. However, this is only about 0.5% of the total number of procedures. Akhmed Yusupov explained this situation by the fact that many borrowers do not have sufficient income even to comply with a relaxed payment schedule.
At the same time, in both judicial and out-of-court bankruptcy, it is impossible to take out a loan for five years without indicating the fact of insolvency in the past. This means that banks can refuse loans for a long time after default.
What will happen to the bankruptcy market in 2026
According to experts, the number of personal bankruptcies will continue to increase in 2026, but the growth rate will slow down to 15-20%. The total number of procedures can reach 650-680 thousand.
Akhmed Yusupov explained that the slowdown this year will be due to a drop in new lending in 2025. The next wave of non-payments will be less widespread due to the more cautious policy of banks.
The Central Bank's restrictions on granting loans to over-indebted borrowers have also improved the quality of debts. The share of risky loans decreased to 21% from 32% a year earlier, said Dmitry Gritskevich, Head of Banking and Financial Market Analysis at PSB.
In addition, we can expect a gradual tightening of judicial practice, says Yaroslav Kabakov, Director of Strategy at Finam IC. According to him, the fight against fictitious schemes and unscrupulous intermediaries may increase the number of refusals to write off debts. The expert stressed that the bankruptcy market will continue to grow, but it will gradually reach a plateau as borrowers, banks and the government adapt to the new financial conditions.
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