How to declare yourself bankrupt on a mortgage: step by step instructions

Today, citizens have the opportunity to declare themselves bankrupt. Mortgages are often the cause of long-term debt obligations. This procedure has its own nuances and conditions. How to declare yourself bankrupt with a mortgage? Described in this article.

Legal subtleties

Can I declare myself bankrupt with a mortgage? This procedure has been practiced in Russia for a long time, but for individuals it became available only in October 2015. And earlier (over 10 years) the law was discussed by legislative bodies. The first option was adopted in 2014, but the law was delayed due to important changes.

At that time, the arbitration court of the Russian Federation was not ready to accept applications for financial insolvency. And only from October 1, 2015, the bankruptcy procedure could be carried out in relation to ordinary citizens. This change was introduced to help people who are in a difficult financial situation and are tired of collectors. Therefore, when you are registered through a bank of real estate, you should know how to declare bankruptcy on a mortgage.

The relevance of the law

Many Russians purchase real estate and many other expensive things on credit. To date, the procedure for issuing loans has been simplified, especially for consumer loans. Thus, the purchasing power of citizens is growing, but many have nothing to repay debts.

Statistics provide the following data:

1. About 15 million people have 2 or more loans.
2. The amount of delinquency is 35 billion rubles.

There are debts not only on mortgages, but also on car loans, consumer loans. Most Russian citizens do not know the basics of financial literacy. But before taking debt obligations, you need to carefully calculate everything. It is necessary to identify risks and evaluate real income.

With irresponsibility, income does not cover debt obligations. As a result, fines are accrued, and debts increase. That is why now you can declare yourself bankrupt with a mortgage, which is actively practiced in European countries.

What gives the right to bankruptcy?

According to the Federal Law No. 127, citizens with debts of more than 500 thousand rubles, having no income and the ability to pay a debt, can go to court to declare themselves bankrupt under a mortgage.

Instead of this procedure, it is possible:

1. Drawing up a settlement agreement.
2. Restructuring.

Can a mortgage be declared bankrupt IP? By law, this procedure is allowed. The debtor and the credit institution have the right to apply for registration.

Conditions

How to declare yourself bankrupt with a mortgage? Arbitration courts hear such cases. A person is declared insolvent in the following situations:

1. If the amount is over 500 thousand rubles.
2. If the delay is more than 3 months.
3. If the citizen is insolvent.

Only in these cases bankruptcy proceedings are possible. Insolvency is considered a person’s financial situation when, after payment, less than the subsistence level remains.

Who could be bankrupt?

Bankruptcy is a state where the debtor does not have the means to pay bills, which is proved by experts. Individuals and legal entities have the right to execute the procedure.

It can be initiated by lenders. Financial and other organizations that do not receive funds file for bankruptcy if they suspect that the client for some reason does not want to pay. Whoever filed the application, the procedure is carried out according to uniform rules.

Decision-making

The decision on the bankruptcy of individuals in the presence of a mortgage is taken by the arbitration court. Representatives of such an institution must provide evidence of bankruptcy or notify of their absence. In other words, when applying to the court for bankruptcy, you need to prove it.

The reasons for non-payment are different: objective, subjective, metaphysical, but not all are satisfied by the court. The former include external factors affecting solvency and independent of the debtor. For example, the deterioration of the economic situation in the country.

Subjective reasons include various circumstances, such as dismissal, illness. Persons who have been declared bankrupt cannot enter into loan agreements for 5 years without being notified of their status. This means that registering new debts will not work. Therefore, it is important to analyze the consequences of bankruptcy before applying for it.

Features of the procedure

How to declare yourself bankrupt on a mortgage? It must be borne in mind that getting rid of debt is quite difficult. Even if this status was officially assigned, you still need to pay as long as there is real estate and movable property.

Jewelry and expensive items will be sold at public auction. But a person’s only housing is not taken away. Therefore, bankruptcy should not be considered a successful solution to debt elimination. Usually this is a delay of sentence and a method of getting rid of psychological stress and pressure of collectors.

Documents

How to make yourself bankrupt on a mortgage? It is necessary to prepare important documents. In addition to the application you will need:

1. Passport, marriage certificate, child birth, property division.
2. Papers provided by state authorities - copies of TIN, personal account statement, on registration of individual entrepreneurs.
3. Certificate of income for 3 months, and with the status of unemployed, you need to take confirmation from the employment center.
4. List of creditors, information on arrears and amount of debts.
5. Medical certificates.
6. Documents on guardianship and papers on the existence of a dependent.
7. Papers on property.

When the documents are collected, and the application is drawn up, you can go to court. In this case, the application will be accepted.

Appeal to the arbitration court

The task of the court is to prove or confirm that a person who claims to be bankrupt on a mortgage cannot actually pay bills. The reason is also indicated.

The court must verify the validity of this requirement. Verification of the implementation of major transactions in recent years. When concealing the existence of property and deceiving the court, the applicant is responsible, he will be required to pay fines. Probably imprisonment.

What follows next?

With the opening of a bankruptcy case in the presence of a mortgage, the court seizes the property of the debtor and a financial manager is appointed. The latter will be:

1. Monitor the financial position of the debtor.
2. Communicate with lenders.
3. Draw up a restructuring plan.
4. Assess and sell property with the recognition of bankruptcy.

The manager may dispose of the property of the debtor. All transactions performed without it are invalid. This person works for a fee - a fixed amount (10-25 thousand rubles) + 2% of the amount of satisfied claims of credit organizations. If the bankrupt is a legal entity, an authorized representative is entitled to manage the organization’s assets.

Judgment

Upon a statement of the bankruptcy of individuals in a mortgage, the arbitration court opens a case in which the debtor, creditor and financial manager will participate. The court can make the following 3 options:

1. Drawing up a settlement agreement.
2. Restructuring.
3. Bankruptcy recognition and sale of property at auction.

An amicable agreement is concluded if the parties compromise on financial disputes. This option is acceptable to the debtor, but it is not always accepted.Often the second and third options are chosen.

Restructuring

After analyzing the debts, the financial manager can contact the creditors and offer them a new payment plan. This procedure is called restructuring. This is a kind of reorganization of a person’s financial situation. The action plan is created together with the debtor, creditor and manager. The objective of this procedure is to restore the solvency of the subject (at least partially).

There are several options for this procedure:

1. Reduced monthly installments.
2. Increase payout period.
3. Deferral - credit holidays.

These measures are perfect for the debtor, since there is no need to pay fines after the restructuring. And lenders will still receive their funds. The plan created by the financial manager is implemented within 3 years. During this period, property is removed from the property, but the debtor’s legal rights are limited.

During this period, it is impossible to bring property into the authorized capital of financial organizations, register shares in the business, and carry out gratuitous transactions. Large financial procedures can be carried out on the basis of agreement with the financial manager. Restructuring is not provided to all debtors. This method is chosen when the person has an income that will be enough to pay the revised debt and accommodation.

Bankruptcy Recognition

Bankruptcy of individuals may be recognized if the apartment is in a mortgage. What follows next? Six months are provided for the sale of property at open auction, and the funds are transferred to the creditor. If there is a need, then there is a realization of a share in the property. For example, the allocation of a share in an apartment acquired by spouses may be required. But no one has the right to take a person’s only home if it is not mortgaged and is not considered a guarantee.

Cannot be recovered:

1. Plots of land on which the debtor's only housing is located.
2. Personal things.
3. Products
4. Fuel for heating the room.
5. Pets and livestock.
6. State awards.
7. Prizes and winnings.

Until the end of the sale of property, transactions with it are not permitted. And the debtor must not leave the country.

The consequences of bankruptcy

Within 5 years after the recognition of bankruptcy, a citizen cannot again be recognized as financially insolvent. For three years he is forbidden to take part in the management of legal organizations. It should not be considered that after obtaining such a status, there is an exemption from monetary obligations. You still need to pay child support or damages.

Many experts believe that filing bankruptcy is necessary only in rare cases, for example, when there is no other way out in this situation. After this procedure, a citizen can not engage in entrepreneurship, in addition, there are restrictions on movement. Status affects credit history. Employers are also wary of such people, because such persons are considered not responsible.

Legal aid

It is not easy to understand the intricacies of bankruptcy on your own. For a favorable court decision, you need to seek professional help. Now there are many companies working in this direction, but the most popular are:

1. "All-Russian Bankruptcy Service." The company has branches throughout the country and a head office in the capital. The company is engaged in consulting customers online. After treatment, people receive prompt assistance in solving their problems.
2. STOP collection. The company employs arbitration managers. Any problems are resolved quickly enough. The company has been operating for many years, which is why it is popular with citizens.
3. "National Center for Bankruptcies." The company operates in every region. Provides assistance in collecting documentation, processing applications and obtaining the desired results. The work is carried out by qualified lawyers.
4. "Lawyer consultation".The company provides assistance in writing off debts in a legal way. Only first you need to consult on the necessary issues, and then order the services.
5. "Legartis." The company advises and helps with all the nuances of bankruptcy. It is necessary to explain the situation, and specialists will surely find the right solution.

Consulting on this procedure will allow you to make a competent decision about the situation. Specialists will tell you the most profitable option, which will allow you to do everything legally.

Bankruptcy is a complex process. It should be chosen only in truly difficult cases, when there are no other solutions to the problem. The consequences of this procedure must also be considered.