Debts and reduction of income: Russians have submitted a record number of bankruptcy statements

In Russia, the number of individuals and organizations that initiate bankruptcy proceedings is rapidly growing. In March and April 2022, more than 62 thousand bankruptcy cases were registered in the file cabinet of arbitration affairs of Russia. In 2021, such cases were 10 thousand less, and compared with the same period of 2019, the number of bankruptcy statements increased by more than three times, writes Forbes.

According to information, in some regions the dynamics is even higher. For example, the volume of bankruptcy claims filed in the Arbitration Court of the Altai Territory only over the past April is almost 4 times higher than the 2019 Dopandemium April. During periods of crises in 2008-2009 and 2014-2015, the number of people who want to bankrupt the company and go bankrupt grew up, but not so rapidly, noted in the regional court: the applications were calculated by dozens per month, and now-hundreds. Mostly asking themselves to be insolvent individuals. Among the reasons, experts call the decrease in income and the growing debt load of Russians.

According to the Unified Federal Register of Bankruptcy Information, in the first quarter of 2022, the courts recognized more than 54 thousand Russians financially insolvent, which is 33.6% more than in the same period last year. The number of corporate bankruptcy was 2544, which is 4.9% less than the same period last year.

It is noted that among organizations submitting bankruptcy statements, there are quite successful ones, but their business has encountered political pressure. On May 18, Google LLC, the Russian structure of Google, announced the intention to start the bankruptcy procedure. As stated in the company’s message, since March 22, 2022, it “foresee its own bankruptcy and the inability to fulfill monetary obligations.”