Bankruptcy decision is not just a procedure for legal disposal of impending debts, but also a chance to reduce monetary losses for a legal entity or individual. But sometimes unforeseen circumstances happen in life that somehow affect a certain outcome of events. If the bankrupt himself dies directly in the process of insolvency, then the proceedings in this case are significantly complicated and delayed for an indefinite period. Fortunately, the laws of the Russian Federation provide many options for resolving all kinds of problems that may arise in a lawsuit.
In this article, you will not only get acquainted with the essence of the concept of bankruptcy, but also learn the features of considering bankruptcy proceedings after the death of a debtor.
What is bankruptcy?
At its core, bankruptcy is the inability of the debtor to pay a specific amount of money that he borrowed earlier. A bankrupt can be both an individual and a legal entity. In the event of a citizen's death or missing person, there is a great possibility that the cargo of non-payment will fall on the shoulders of the declared relatives or proxies. If they are not able to pay the debt, the inheritance will become state property. The main issue in the bankruptcy of individuals after death is who will pass the hereditary mass and possible debts to various institutions. As a rule, a notary can help deal with this problem.
Bankruptcy of a citizen in the event of his death
According to article 223 p. 1 of the federal law of the Russian Federation, the bankruptcy process after the death of the non-payer can be initiated directly by the heir, the selected creditor or proxy from the state. In this case, the object of litigation is the tangible and intangible property of the deceased, which can satisfy the early requests of creditors or banking institutions. The dispute resolution process, as a rule, consists of the following points:
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selection and compilation of a list of heritage items;
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involvement in the bankruptcy case of heirs;
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refusal to restructure;
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signing amicable agreements that will satisfy the interests of both parties.
If the debtor died during the bankruptcy process, the settlement of this dispute may take some time, however, the state is still interested in both the heirs and the creditors to come to a single decision with the least loss for them.
Regulation of insolvency proceedings
In order to peacefully resolve the bankruptcy process after the death of the debtor, the heirs can agree to the conditions of the creditors, and those, in turn, write off a certain share of the debt or compromise with the relatives of the deceased or his trustees. Also, the legislation of the Russian Federation regulates a situation in which the inheritance itself can be combined with debts to creditors. The heir in this case has the right to declare himself bankrupt, and the structure of the case will be reorganized.
It is worth noting that the peculiarities of considering a bankruptcy case after the death of a debtor include the fact that representatives of financial institutions, authorized lawyers, experts who evaluate property, and notaries participate in it. This case, as a rule, is considered in the arbitration court.
Inheritance legacy
The bankruptcy of individuals is not a significant reason for rejection of the case of insolvency, but at the same time this procedure requires the introduction and implementation of certain points that can satisfy the needs of creditors and help trusted agents figure out what to do with the debts of a deceased relative.
It is worth noting that creditors may not be interested in the seizure of personal belongings or money of the heir, they have the right only to the tangible and intangible property of the deceased debtor. Also, the following items of property may not belong to the competitive list of things:
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household items, furniture, personal clothing of the heirs;
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housing of a relative of the deceased;
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military insignia (various medals and awards).
In extreme cases, the listed items may be included in the bankruptcy estate if the debtor's trustees did not appear before the appointed date. After that, all the property of the deceased will become state property.
Bankruptcy of the heir
There are options to simplify this procedure as provided by law. As mentioned earlier in the article, the heir to a deceased person is entitled to recognize the state of bankruptcy. In this case, state bodies can combine the inheritance and debts into one mass and begin to search for methods that will help the trustee pay part of the debt. In general, the procedures for the failure of the heir and bankruptcy after death are no different.
In order to competently deal with documents and get legal support, heirs can turn to the services of a notary.
Notary Assistance
Legally competent notaries can greatly simplify the process of fulfilling the conditions of the will, as well as help to deal with the bankruptcy procedure. Until a certain moment, notarial services were part of the debt collection process, but now a notary can only be involved in the matter as an uninterested person or expert.
Heirs or proxies of the deceased may use the following services of a notarial agency:
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issuance and execution of various documents that are necessary in the bankruptcy process;
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writing applications for the distribution of heritage;
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legal protection of property of the deceased;
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compilation (or participation in this process) of the tender list of inheritance;
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maintenance of the heritage until the moment of transfer to the receiving person (heir or state bodies).
Further from the article you will learn what the main feature of notarial support consists of.
The essence of notary assistance
Since the notary is an independent expert, he does not have the right to take someone else's position in the proceedings on the transfer of inheritance, but can only manage the property and help in the preparation of the necessary documents. From the moment of the beginning of the bankruptcy procedure until its completion, the notary expert accompanies the deceased's inheritance. It is worth noting that there may be several outcomes of this process - the transfer of property to the heir or trustee taking into account the repayment of all debts or the complete seizure of heritage items by state bodies or interested creditors.
The bankruptcy procedure after the death of the debtor has a number of complex circumstances and points that all representatives of the parties may face. Fortunately, the legislative system of the Russian Federation is improved every year, and it is possible that in the near future these processes will be much simplified. Also, do not neglect the services of various experts who can more carefully understand the various nuances and help to achieve mutually beneficial conditions for claiming heirs and declared lenders.