From 2017, everyone can declare bankruptcy, if there are good reasons and reasons for this. The procedure is implemented taking into account the requirements contained in the Federal Law No. 127. During its implementation, the interests of both the debtor and all creditors must be respected. The process is implemented exclusively with the involvement of a financial manager for individuals. It is he who ensures that all the requirements of the law are complied with, and his responsibilities include property valuation, bankruptcy proceedings, the compilation of a register of requirements and the formation of a report on the work done.
Manager concept
The financial manager for individuals is represented by a citizen approved by a decision of the arbitral tribunal. It is appointed solely on the condition that the court makes a decision to declare a particular debtor bankrupt. The duties of a specialist include taking into account the interests of all participants in the process.
Without the invitation of this specialist, bankruptcy of a private person is impossible.
How to choose?
Based on legislative acts, the debtor can choose a manager. To do this, they in a statement by which he is declared insolvent, indicates a specific SRO. The financial manager for individuals is selected directly by the organization of arbitration managers.
Features of the choice of a specialist include:
- the manager must be a member of a suitable SRO;
- he is obliged to meet the requirements for arbitration managers;
- he is not allowed to have a personal interest in the result of the case, therefore he cannot be a relative or close acquaintance of the debtor or creditors.
A financial manager for individuals must be included in the SRO, as otherwise he cannot participate in the bankruptcy procedure of an individual. After choosing an SRO, the debtor enters into an appropriate agreement with this organization. The selected candidate is approved by the arbitration court. To do this, the judge must first make sure that the appointed citizen meets all the requirements.
What role does it play?
A financial manager for individuals is invited to attend a mandatory bankruptcy procedure. He plays an important role in this process, therefore, the features of his work include:
- the court cannot, without the participation of this specialist, decide on the bankruptcy of a private person;
- he possesses the necessary skills and abilities to identify signs that a person intentionally brought himself to bankruptcy;
- he develops comprehensive measures to avoid insolvency, which leads to the fact that a citizen can cope with his debts on his own.
It is the manager who ensures the protection of the interests of citizens.
What are the requirements for it?
The financial manager in case of bankruptcy of individuals must comply with some significant requirements. These include:
- appointed solely by the court;
- must be in a suitable SRO;
- higher education required;
- he must have a certificate confirming that he has taken courses designed to train arbitration managers;
- there should be no recorded administrative offenses in the past;
- experience in conducting any positions in companies is required;
- existence of an insurance contract;
- the need to transfer funds on a monthly basis to the SRO compensation fund of which it is a member.
In Russia, there are quite a few SROs of arbitration managers who themselves establish different requirements for their participants.
How is it assigned?
The services of a financial manager for individuals are mandatory, since without them it will not be possible to legally declare any citizen insolvent. The features of its purpose include:
- the procedure is carried out exclusively by the arbitral tribunal;
- individuals can choose their SRO on their own, for which purpose a suitable organization is indicated in the application submitted to the court;
- it will not work to choose a specific person, since the appointment is carried out only by the leadership of a specific SRO.
Often, citizens are faced with the fact that when contacting lawyers, they are offered the opportunity to appoint a suitable manager for a small fee. In fact, this is fraud, as third parties cannot influence this process.
Responsibilities and functions of a specialist
A financial manager for individuals, after being appointed by the court, can take advantage of various unique opportunities for the implementation of their labor activities. At the same time, he has some responsibilities that must be performed before the court and creditors.
The powers of a financial manager in bankruptcy of an individual include:
- control over funds in the debtor’s accounts, therefore, all expenditure transactions or cash receipts are monitored, and there is the possibility of prohibiting numerous transfers or transactions;
- formation of an inventory of property owned by the debtor, after which an assessment of the values is made, which allows to determine how many debts can be repaid by selling them;
- the organization of direct bidding intended for the sale of property in order to obtain the right amount of money;
- identification of receivables, after which the manager can use various methods to recover funds from bankrupt debtors;
- tracking of all property necessary to cover the debt, therefore, the execution of various transactions by the debtor, aimed at hiding or secret sale of objects is prevented;
- sale of valuables of the debtor at auction;
- distribution of money received after the auction between different creditors of the debtor;
- study of all transactions concluded by the debtor over the past three years and related to the sale or donation of valuable property, since if relatives participate in them, such transactions may be invalidated;
- restructuring upon preliminary approval of creditors by the process, and such actions by a specialist often lead to the termination of bankruptcy proceedings;
- if attempts are made by the debtor to hide property or by other means to carry out fictitious bankruptcy, then such actions of a citizen are recognized as fraud, therefore he will be prosecuted by the court, and for such violations he may be sentenced to prison if the amount exceeding 1.5 million rubles is concealed. ;
- holding a meeting of creditors, at which creditors can obtain information about the progress of the work, work done, as well as examine the report of the specialist.
Due to such many powers and responsibilities, the manager can count on significant rewards. It is calculated depending on the amount of money received after completing the work. The obligations of a financial manager in the event of the bankruptcy of an individual may be increased by the court when certain circumstances are identified. His work is additionally influenced by direct lenders who want to get results as quickly as possible.
Representative credentials
When appointed by a court, a specialist has the authority to represent the interests of the debtor during court hearings. Therefore, the financial manager in bankruptcy of individuals additionally has the following capabilities:
- on behalf of a citizen going through insolvency proceedings, the specialist submits various appeals to the court;
- statements are being generated containing information on the fictitiousness of certain transactions, the main purpose of which is bringing a citizen to bankruptcy;
- drawing up objections to claims made by creditors;
- taking part in the debt restructuring process, and often due to the participation of this specialist, it is possible to terminate bankruptcy, so the citizen then manages the payments independently;
- requesting data from bankrupt bank accounts;
- studying his credit history.
When private individuals are declared insolvent, the financial manager acts as an intermediary between the debtor and other individuals and organizations. Additionally, the services of a financial manager for individuals include the provision of legal and legal support.
What actions are performed by the manager?
After the appointment of a specialist, various actions are launched to study and support the debtor. Bankruptcy of individuals without a financial manager is impossible. The specialist operates according to a certain scheme, since it is important to ensure that most of the citizen's debts are paid off.
The main actions of the manager include:
- information is published that a particular citizen is declared insolvent in the media and the EFRSB;
- assesses the financial standing of a bankrupt;
- requests are made to various state bodies submitted by the Rosreestr, BTI or the Federal Tax Service, which allow to find out what kind of property a citizen has, as well as what transactions with different values were made by him over the past three years;
- signs of fictitious bankruptcy are identified, and if they do exist, a citizen is held administratively or criminally liable;
- the results of the analysis of the financial condition of a person are submitted to the court and published in EFRSB;
- a personal account is opened for the use of funds owned by the debtor to pay off existing debts;
- the details of this account are sent to the employer of the citizen, so the person’s salary is then transferred to a new account;
- the manager is engaged in accounting for the citizen, for which he provides him with the necessary amount of money for life, represented by a living wage for each family member, and also pays for utilities and rental housing, transfers alimony and is engaged in other monetary operations;
- the legality and reality of all transactions concluded over the past three years is checked;
- on the basis of the work done, reports are formed, which are then sent to the court, and they are also presented to creditors for review;
- a register of creditors' claims is drawn up;
- meetings of creditors are held where important issues are resolved regarding the bankruptcy of the debtor;
- the property belonging to the citizen is described and evaluated;
- tenders are held to sell the identified values, and electronic trading floors are used for this, which greatly simplifies the process of selling property;
- the money collected by the manager is distributed among the creditors, for which money is transferred to their accounts;
- a final report on the work done by a specialist is formed;
- after studying this document, the bankruptcy case is closed by the court.
All actions of a specialist must meet the requirements of the law.The rights of a financial manager in case of bankruptcy of individuals are numerous, but at the same time he must take into account some requirements, since otherwise he can be replaced at the request of creditors or the direct debtor.
How to compile a report?
In the process, the manager draws up many reports that are submitted to the court or creditors. But the final document, on the basis of which information is entered into the federal register, is considered the most important. The rules for generating this report include:
- all actions performed by the specialist in the process of work are indicated;
- documentation is compiled personally by the manager;
- register the results of the transfer of funds to citizen creditors;
- the report is submitted to the court and the federal registry, and is also presented to creditors.
The report must be adopted and approved by the court. If various flaws or errors are revealed in it, then this may become the basis for its rejection, so the specialist will have to enter additional information.
How to change manager?
Often, creditors or the debtor filed a complaint against the trustee if for various reasons he cannot cope with his duties. In this case, a change of financial manager in the event of bankruptcy of individuals may be carried out. The procedure is carried out exclusively with the appropriate court decision.
A complaint may indicate a manager’s fraudulent actions, inaction or lack of qualifications. Therefore, he can be brought to justice at all, therefore, a fine of up to 50 thousand rubles will be imposed, disqualification for a period of up to three years, or punishment under the Criminal Code may be used at all.
The court then selects a new specialist, for which the register of financial managers for individuals is used. The court usually turns to another SRO for this.
Specialist Compensation
Be sure to pay the services of a financial manager in the event of bankruptcy of individuals. The cost of its services depends on various factors, which include the expenses incurred and the time spent on assessing the financial condition of the debtor and selling his property.
The main expenses of a specialist include:
- passing paid courses designed to train specialists;
- an internship at an SRO that lasts two years, and it is important to pass an exam in advance to complete it;
- joining an SRO requires a contribution of a minimum equal to 200 thousand rubles;
- funds are spent on compulsory liability insurance, and for this it is required to transfer at least 40 thousand rubles to insurance companies. in year;
- membership fees in SROs monthly amount to about 4 thousand rubles;
- contributions to the PF are about 20 thousand rubles. with income not exceeding 300 thousand rubles. in year;
- income tax equal to 13% of all cash receipts.
Therefore, in the event of bankruptcy of individuals, the remuneration of a financial manager may vary significantly in size. Usually they are charged from 2 to 7 percent of the money received in the process. Funds are transferred to the manager in the first place. After that, money is sent to pay for legal expenses, and only after that the debt is paid off.
Conclusion
Financial managers are necessary when conducting bankruptcy proceedings against individuals. They have many powers and responsibilities. Must be a member of the SRO and appointed only by the court. In the event of bankruptcy of individuals, the remuneration of the financial manager is necessarily transferred, the amount of which depends on the results of the specialist.
If necessary, creditors and the court can replace the manager, if there are good reasons for this. Without fail, a specialist draws up a report on the work done, which is transmitted to creditors, the court and the register of debtors.