Since 2020, Russia has offered an out-of-court bankruptcy route — a way to discharge debts without a court hearing or a financial trustee. In 2023 the eligibility conditions were significantly broadened: pensioners and recipients of social payments can now use the procedure even without completed enforcement proceedings.

What Is Out-of-Court Bankruptcy?

Out-of-court bankruptcy is governed by Article 223.2 of Federal Law No. 127-FZ on Insolvency (Bankruptcy). The procedure runs through the Multifunctional Centre (MFC) and takes 6 months. It requires:

no state duty;
no trustee deposit;
no court appearances.

This distinguishes it fundamentally from court bankruptcy, whose minimum costs exceed 40,000 roubles.

Who Can Apply in 2026?

Since 3 November 2023, a debtor may file for out-of-court bankruptcy if two conditions are met simultaneously.

Condition 1. Debt Amount

Total debt must be between 25,000 and 1,000,000 roubles (excluding fines, penalties, and accrued interest). Loans, credits, contractual debts, and tax arrears all count.

Condition 2. One of the Following Grounds

Only one of the three grounds needs to apply:

Ground A. Enforcement proceedings have been closed under Article 46(1)(4) of the Enforcement Proceedings Law — the bailiff found no seizable assets and returned the writ to the creditor.

Ground B (new since 2023). The debtor receives a pension (by age, disability, or loss of breadwinner) and has no assets that can be seized.

Ground C (new since 2023). The debtor receives a monthly child-benefit payment and likewise has no seizable assets.

Debts That Cannot Be Discharged

Out-of-court bankruptcy does not extinguish:

child support (alimony);
compensation for personal injury or loss of life;
subsidiary liability debts;
obligations arising after the MFC application was filed.

How to Apply: Step by Step

Draw up a creditor list — with the name, address, and amount owed to each creditor. This is the key document: debts owed to creditors not on the list will not be discharged.
Visit any MFC at your place of residence or stay with your passport and the creditor list. The application is completed on site.
The MFC verifies the grounds within 3 business days and publishes the details in the Unified Federal Register of Insolvency Information (Fedresurs).
6-month moratorium — creditors included in the list may not charge interest or penalties, sue, or enforce during this period.
Completion — if no creditor contests the bankruptcy, the MFC publishes a completion notice and the listed debts are deemed discharged.

What Happens If a Creditor Contests the Procedure?

A creditor may apply to the arbitration court if they discover undeclared assets or a material change in the debtor’s financial position. In that case the procedure converts to court bankruptcy.

Frequently Asked Questions

Can I use out-of-court bankruptcy again in the future? A repeat out-of-court bankruptcy is only possible after 10 years. Court bankruptcy following an out-of-court procedure requires a 5-year wait.

What happens to my salary and bank accounts during the procedure? Accounts are not frozen. The debtor continues to receive wages, pension, and benefits as normal — only enforcement proceedings on the listed debts are suspended.

How many MFC visits are required? Usually just one — to file the application. The MFC will notify you when the procedure is complete.

Will a creditor’s debt be discharged if I forgot to include them on the list? No. Debts owed to creditors not included in the list remain in force. That is why the list must be as complete as possible.

Out-of-Court Bankruptcy Through the MFC: Who Qualifies