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Number of citizens declared bankrupt in Russia up over year by 70%

The largest number of bankrupt citizens is still observed in Moscow and the Moscow region

© Sergei Konkov/TASS

MOSCOW, December 4. / TASS /. The number of Russian citizens declared bankrupt over the 11 months of 2019 increased by almost 66,000 to 161,000 people year on year, the Stopdolg Law Firm said in a press release on Wednesday.

"The forecast we made for 2019 was more than justified: 70% more citizens were declared bankrupt in 11 months than in the same period last year," Stopdolg director Valentina Zebnitskaya said.

The company noted that they associate the increase in the number of bankrupts primarily with increasing awareness of citizens about the ability to write off debts. Borrowers go through the procedure and begin to recommend it to their relatives, friends and colleagues. "If earlier we very often faced with a lack of understanding of the essence of bankruptcy and with shame ‘what people will say’ now more and more people are consciously going into the procedure because they have a living example in their eyes," the company explained.

The largest number of bankrupt citizens is still observed in Moscow (12,000) and the Moscow region (9,600), St. Petersburg (7,600), Bashkortostan, and the Krasnodar Region. The number of bankruptcy cases in the country per 100,000 citizens as of December 1 is 110 against 65 cases at the end of 2018 and 35 at the end of 2017. The Vologda Oblast is the leader in this indicator, with 277 cases per 100,000 inhabitants.

"The bankruptcy ratio (the number of bankruptcy cases in a country per 100,000 citizens - approx. TASS) reflects both the general socio-economic situation and the activity of law firms in a particular region," the company explained. "For example, Kalmykia and the Penza regions this year were named by Prime Minister Dmitry Medvedev among the most problematic. At the same time, in the Vologda region, for example, a whole "legal cluster" has developed: there are a lot of small law firms and private practitioners’ surfers; hence the high rates in the number of bankruptcies. ".

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