Number of personal bankruptcies doubles in Tatarstan

Corporate bankruptcies have gone up

By the results of the first half of the year, the number of corporate bankruptcies in Russia has increased for the first time since 2017, according to the statistics published by the Fedresurs service on 7 July. In comparison with the first half of 2020, this year the growth has been 9%, up to 4,900 decisions on insolvency.

At the same time, a moratorium on bankruptcy was in effect in the country for half of the first half of 2020 — it lasted from April 6 to January 7, 2021. At the beginning of April, 1,29 million companies and sole proprietors were subject to it, and as of December 31, 2020 — 515,000 companies and 1,6 million sole proprietors (14,6% of all companies registered in Russia and about 40% of sole proprietors).

The situation is similar with regard to monitoring procedures. In the first half of 2021, their number increased by 26,1%, to 4,150 by the first half of 2020.

The data of Fedresurs also indicate an increase in the number of creditors' intentions to apply to the court with applications for bankruptcy of their counterparties. Their number has increased to 15,955, which is by 29,7% more than in the same period of 2020. In this regard, the head of Fedresurs project, Aleksey Yukhnin, predicted a further increase in the number of bankruptcies in the second half of the year.

The situation with the initiators of bankruptcies has changed slightly. Most of the procedures in January-June 2021 were initiated by bankruptcy creditors — 74,5% (for the same period in 2020 — 75,4%). The Federal Tax Service was the applicant in 15,6% of cases (there were 14,2%), debtors — in 9,3% of cases (there were 10,4%), employees — in 0,6% of cases (there were 0,5%).

Tatarstan was among the regions with the largest number of bankruptcies in the first half of the year — 165 decisions. The growth, in comparison with 2020, was 17%. The republic has only slightly not reached the top 5 in terms of the number of bankruptcies — it includes Moscow (969, plus 13,7% by the first half of 2020), St. Petersburg (401, an increase of 36,9%), Moscow Oblast (358 companies, an increase of 15,9%), Sverdlovsk Oblast (171, an increase of 12,5%) and Krasnodar Krai (167, plus 35,8%).

Citizens began to go bankrupt twice as often

As for personal bankruptcies, in January-June 2021, the courts declared 88,000 Russians bankrupt, including individual entrepreneurs. The number of bankruptcies in the first half of 2021 was 2,1 times higher than a year earlier — in the first half of 2020, 42,700 Russians became bankrupt.

The procedure of personal bankruptcy in Russia has existed since 2015, and the courts have declared 370,000 Russians insolvent over that time. Thus, the first half of 2021 alone “provided” almost a quarter of all personal bankruptcies in Russia.

As noted in the message of Fedresurs, in the majority (95%), citizens independently initiate their bankruptcy, unlike companies where production usually begins on the initiative of creditors.

The leaders in the number of bankrupts are Moscow (4,85 thousand, an increase of 98%) and Moscow Oblast (4,700 decisions, plus 114,7%), as well as Krasnodar Krai (4,3 thousand, an increase of 136,8%), Samara Oblast (3,9 thousand, an increase of 98,0%), St. Petersburg (3,8 thousand, an increase of 106,8%).

Tatarstan is far from these regions in the issue of personal bankruptcies. According to the calculations of Realnoe Vremya, 2,33 thousand decisions on personal bankruptcies were made in the republic in the first half of the year, mainly with the sale of the debtor's property (courts made only 101 decisions on the introduction of debt restructuring procedures). Nevertheless, there is a twofold increase in the number of personal bankruptcies in the republic — a year ago, the court issued only 1,180 such decisions.