Bankruptcy procedure for individuals with a mortgage: what will happen to the apartment

The phrase an apartment is taken away for mortgage debts sounds scary. Banks may initiate termination of contracts with clients who have debt on a loan issued as collateral for purchased real estate.

The article details the nuances of finding a compromise on a mortgage transaction between the parties and the procedure for repossessing residential real estate. It also examines in detail the valid and disrespectful reasons for delay, which are taken into account when making a decision regarding eviction from an apartment for mortgage debts.

Bankruptcy Law

Legal interactions between the mortgage debtor and the lender are regulated by the following norms and acts of the legislation of the Russian Federation:

• Civil Procedure Code;
• Law “On Mortgage (Pledge of Real Estate)” dated July 16, 1998 102-FZ;
• Civil Code (Civil Code of the Russian Federation);
• Federal Law of October 26, 2002 FZ-127 “On Insolvency (Bankruptcy)”.

The latter has been applied to private citizens since 2015 and allows them to officially declare themselves bankrupt (previously this was not possible).

It is permissible to declare yourself financially insolvent if you have mortgage obligations in the following situations:

1. The amount of all existing debts exceeds 500 thousand rubles. If the value of the borrower's property is less than the specified value, it is allowed to initiate bankruptcy proceedings.
2. In court, it was possible to prove that good reasons led to financial instability: loss of a stable job, long-term disability due to serious illness of the debtor himself or someone in his family, force majeure (fire, serious accident, etc.).
3. Debt arrears exceed 3 months.

Expert opinion
Irina Bogdanova

Expert in the field of mortgage lending.

Both the debtor himself and his creditors can file a claim with the court for bankruptcy. Starting from 2021, the state duty for this procedure has been reduced from 6,000 to 300 rubles.

Protection of mortgage borrowers under the Federal Law

The current legislation of the Russian Federation has provided for a number of measures that guarantee the protection of the interests of borrowers on housing loans.

Thus, foreclosure of property serving as collateral for a mortgage is not permitted. This is provided that the court has established a minor violation of debt obligations by the borrower (the time of delay in mortgage payments does not exceed three months). Consequently, the creditor will have to prove the client’s bad faith.

In paragraph 5 of Art. 54.1 of the Law “On Mortgage” establishes another restriction on foreclosure on an object pledged with a mortgage if the borrower makes periodic payments. He risks losing the living space purchased with loan funds only when payments are systematically not received on time (more than 3 delays during the year before going to court, even with a slight delay in payments).

You cannot foreclose on mortgaged real estate outside of court.

The Civil Code also provides legal protection to borrowers. In particular, the provisions of Art. 421 of the Civil Code of the Russian Federation provide for freedom of contractual relations between the borrower and the lender - it is permissible to settle them by restructuring the debt in any way.

Due to the current unstable economic situation due to currency fluctuations, the Government of the Russian Federation approved on April 20, 2015 provisions for the implementation of a program to assist certain mortgage borrowers facing financial problems.

Such citizens include:

• participants in state-supported programs aimed at improving housing conditions;
• citizens who have two or more minor dependents, or 1 or more, but whose parents (one parent if the family is single-parent) are not older than 35 years;
• combat veterans;
• people with disabilities or raising disabled children.

How we applied for a car loan

The manager of the car dealership was in a hurry: they say that the money that the state allocated for subsidies will run out one of these days, we will have to wait for an unknown amount of time for a new opportunity - and it is not a fact that the program will be extended. But then he reassured me and even set a date: he promised that all applications submitted before May 16 inclusive would be approved. My husband was at the car dealership on the evening of May 16, he arrived there immediately after work. We drew up a purchase and sale agreement and a loan agreement at Sovcombank.

The loan was given for 36 months at 15.99% per annum. The monthly payment under the loan agreement is RUB 8,986.22. The collateral for the loan is the purchased car. The first payment was 600,000 RUR, the rest - 285,900 RUR - we had to take on credit in order to receive a subsidy and realize regional maternity capital. Subsidy under the “Family Car” program - 88,590 RUR, 10% of the cost of the car. The bank did not include this amount in the loan. If the subsidy had not been approved, we would have been obliged to return this money to the bank.

As a result, the loan amount, taking into account the subsidy, was supposed to be 197,310 RUR, but it turned out to be more - 255,530.21 RUR. Now I’ll tell you why.

During the registration process, the Sovcombank manager offered additional products:

1. Voluntary financial and insurance protection program for borrowers. It allowed the interest rate to be reduced from 15.99 to 12.99% per annum.
2. Credit card "Golden Key". With it you can pay off a loan without personally visiting a bank office, and also use the services of a car lawyer.
3. Credit card "Auto halva". The husband said that he doesn’t use credit cards, but the manager was insistent: “What if you try it and like it, because the card is very convenient and free.” The husband did not argue and agreed, and the manager immediately insisted on activating the card.

The husband was the last client; the car dealership was about to close. He read the main contract, but did not read the additional documents. As a result, in addition to the main loan agreement, he signed:

1. Motor insurance agreement for RUB 29,947.52.
2. Application for inclusion in the program of voluntary financial and insurance protection of borrowers. It cost 0.253% for each month of the loan term. Insured events under the program include death as a result of an accident or illness, as well as receipt of the first group of disability as a result of an accident or illness.
3. Application-offer for a consumer loan agreement. According to it, the borrower asks to change clause 4.6 of the individual terms of the consumer loan agreement: set the rate to 12.99% per annum. Interest at the new rate is 54,485.72 RUR, the total amount of payments is 310,015.93 RUR, and the amount of monthly loan payments is 8611.33 RUR.
4. Application-offer for opening a bank account and issuing a “Golden Key” package with a “Mastercard” gold card.
5. Consent to insurance, which was attached to the offer application. The spouse was insured for 10,000 R in case of unforeseen expenses for legal fees under the collective agreement for insurance of property interests of individuals concluded between him and PJSC Sovcombank.
6. Individual terms of the consumer loan agreement for the agreement for the “Auto Halva” card. The lending limit is RUB 15,000, the interest rate and loan repayment terms are according to bank tariffs.

All this affected the final loan amount: it increased significantly.

What awaits co-borrowers during bankruptcy?

If the borrower is declared bankrupt in court, then his debt obligations to the bank remain in the same amount, but are transferred to the co-borrower or guarantor.

This happens according to the following algorithm:

1. During the procedure for declaring a borrower insolvent, the debt is partially written off by covering it with funds received from the sale of property or restructuring of the unpaid amount on the mortgage. After declaring a client bankrupt, the credit institution has no right to make any demands on him.
2. If the debt is not fully repaid, the balance must be covered by the co-borrower of the bankrupt client.

Expert opinion

Irina Bogdanova

Expert in the field of mortgage lending.

This can be avoided in the event of bankruptcy of the co-borrower. Therefore, both need to file a claim. Since a marriage partner is often a co-borrower on a home loan, you should file for bankruptcy together.

Bankruptcy of a co-borrower

What awaits the main borrower if a co-borrower is declared financially insolvent:

• the banking organization will demand that the debt be repaid ahead of schedule so as not to lose money if the borrower becomes insolvent;
• in case of delays, the lender puts the collateral property up for auction to compensate for losses;
• the organization that provided the housing loan asks the client to officially confirm income and checks whether it is sufficient to make monthly loan payments;
• The bank recommends changing the co-borrower (guarantor).

That is why you should not skimp on insurance when applying for a mortgage.

Then, in unforeseen situations, the debt burden will fall on the company from which the borrower purchased the policy.

How to get money back when terminating your mortgage

If you terminate the mortgage agreement, you will be able to return the money spent on servicing the loan. This is possible if the bank has agreed to sell the collateral real estate and change the borrower under the agreement. In this case, the bank will calculate the funds already paid and the balance of the debt. The money that the previous borrower has already paid to the lender must be returned to the seller of the property by the buyer. Thus, the former borrower can receive back not only the funds paid as monthly payments, but also the down payment on the mortgage.

What does bankruptcy give an individual with a mortgage?

Obtaining bankruptcy status does not relieve the borrower from fulfilling debt obligations to the creditor bank. The procedure for declaring a citizen insolvent is a chance to return the unpaid mortgage balance on favorable terms.

The arbitration court carefully analyzes all the circumstances of the case, looking for the possibility of resorting to loan restructuring or concluding a settlement agreement between the two parties. A decree on the sale of property is a last resort when all attempts to recover funds have been exhausted.

However, the bankruptcy procedure is beneficial for the debtor for a number of reasons:

1. The initiation of reorganization automatically leads to the suspension of other debt enforcement proceedings initiated by the bank. The borrower has time to resolve the financial issue.
2. Large financial and credit organizations often agree to a settlement, offering the debtor to enter into an agreement on more acceptable terms.
3. Filing a claim for bankruptcy encourages the creditor to review the credit regulations and offer restructuring of the problem loan. Thus, the bank tries to reduce the risk of non-repayment of money.

Expert opinion

Irina Bogdanova

Expert in the field of mortgage lending.

As long as the lawsuit or restructuring of the home loan continues, the borrower retains the home, but with restrictions.

Refinancing

This process involves taking out a second mortgage to replace the first. This is done when more favorable conditions appear. Most often they are found in a third-party bank, not the one from which the loan was originally received. A new loan may have completely different conditions - interest rate, repayment period, monthly payment amount, and so on.

It is not possible to return the money that you have already paid to the first bank for using the loan. The balance of the debt is repaid using the funds of another bank and the contract is closed. It is important to remember that when lending to another bank, a down payment may be required.

Bankruptcy of individuals: conditions for recognition

Any individual who has Russian citizenship can recognize himself as financially insolvent. The main thing is to comply with certain conditions prescribed in Art. 213-3 (part 2) Federal Law-127 “On Bankruptcy”:

• the creditors' claims for debts in the aggregate amount to at least 500 thousand rubles;
• debtor for more than 3 months does not make payments.

Along with the conditions prescribed by law, there are also unofficial ones (they must be taken into account during the trial). In particular, an individual initiating bankruptcy proceedings must have a clean credit history. Therefore, you will need the help of an experienced lawyer who will be able to name in court the compelling reasons for the debtor’s insolvency during this period.

The judge takes into account the following circumstances:

• the borrower is unable to pay 90% of the total amount of all existing debts (a bank account statement and other documents showing current income are presented as evidence);
• the total debt on mortgages and other loans exceeds the value of the debtor’s entire property;
• the presence of acts drawn up by bailiffs and indicating that the citizen does not have any property for sale to pay off debt obligations.

Do they have the right by law to take away housing?

There are several cases when a bank may require repossession of a home. Before confiscating an apartment from a debtor, a citizen is always given a chance to repay the entire outstanding amount, avoiding confiscation. However, even after putting the borrowed apartment up for auction, it can be returned by paying off the entire arrears.

Eviction from a home purchased with a mortgage is common. Such processes are heard in court, which makes a decision. If there is a large, long-term payment arrears, the bank has the right to seize the apartment and put it up for auction.

The whole process is carried out in three steps:

1. The formation of a deficiency on a mortgage debt obligation.
2. A statement of claim from a bank to foreclose on a home purchased with a mortgage.
3. Court decision and placement of the apartment for sale (most often public auction).

If the confiscated living space is not sold at auction, it becomes the property of the creditor company. In such a situation, the bank has the right to use the apartment at its discretion.

When considering a case, the judicial authority takes into account the following nuances:

1. The debtor does not hide and does not refuse credit obligations.
2. Loss of regular work as a citizen.
3. The borrower made attempts to solve the problem peacefully (wrote applications for interest reduction, granting deferment).

Of course, it is better not to take matters to the extreme and if the slightest difficulties arise, try to solve them without resorting to a statement of claim, then the bank will not take your home.

The court may decide to evict debtors from the mortgaged apartment

Sale of the debtor's only home in bankruptcy

If the borrower at fault was unable to peacefully resolve the debt issue with the bank, the collateral and other valuables are subject to sale. First, a financial expert evaluates the apartment, then he draws up a list of property and sets a date for the auction.

After the sale of a mortgaged apartment, no more than 80% of the proceeds go to pay off the mortgage and other debts, the remaining funds go to pay legal costs. If there is money left after satisfying creditor claims, it is returned to the client. In reality, the amount of debt often exceeds the market value of the mortgaged apartment. The uncovered loan balance is written off by the bank.

This situation makes it possible to buy your apartment at a debtors’ auction at a reduced price (a bankrupt can take advantage of the first right of redemption).

How to keep a mortgaged apartment during bankruptcy

There are several ways to avoid losing your apartment during bankruptcy proceedings:

• involve the board of trustees (if minor children live in the residential area, then until they turn 18, the apartment remains at the disposal of the bankrupt person);
• take a loan from a private company and buy an apartment at a bankruptcy auction at market value;
• resort to debt restructuring, which will allow it to be repaid according to a newly developed scheme (the process can last up to 3 years);
• refuse to pay the mortgage, then the debt obligations will be transferred to the co-borrower and the guarantor.

Even government benefits will not help in the fight with banking structures for an apartment mortgaged, for example, maternity capital used as a down payment.

The only amendment: the guardianship and trusteeship authorities will take part in the case. Children must be allocated a share of at least 8% of the total living space. But in practice this rarely happens.

What is considered the only residence?

The only housing is considered to be where the debtor and his family can live all year round in decent conditions. If we refer to Article 446 of the Code of Civil Procedure, such living space must be withdrawn from the bankruptcy estate at the auction of the debtors. An exception, according to paragraph 1 of the mentioned article, is the subject of a mortgage, which is not considered the only dwelling.

Expert opinion

Irina Bogdanova

Expert in the field of mortgage lending.

The mortgaged apartment is subject to sale, and everyone living in it (even minor children) will be forcibly evicted.

Will the apartment be taken away from the mortgage debtor?

Many unscrupulous borrowers believe that if the mortgaged property is their only home, then it will not be taken away to pay off the debt. In fact, this rule does not apply to the pledged object, and it is not excluded from the bankruptcy estate (Article 131 of Law 127-FZ “On Bankruptcy” dated October 26, 2002).

Expert opinion

Irina Bogdanova

Expert in the field of mortgage lending.

An encumbered apartment is not fully the property of the borrower until he pays the bank. He can use it, but has no right to sell it or give it to anyone.

Such an object is recovered in accordance with the norms of the Civil Procedure Code, Federal Law No. 138, Art. 446, as well as on the basis of the provisions of the “Mortgage Law” No. 102-FZ.

How can you save your mortgaged home before bankruptcy?

There are several options that will help the borrower save mortgaged housing without going through bankruptcy:

1. Apply for a credit holiday - a temporary deferment of payments until the financial situation stabilizes. Perhaps the bank will make concessions and agree that the client will pay only interest for a certain period.
2. Resort to loan refinancing - recalculating the mortgage loan at a lower rate or extending the installment period. Many banks do not refuse this to bona fide borrowers. Options for refinancing:
   

   Bank	Loan amount, up to	Bid	Mortgage term
   up to 30,000 rub.	from 9.8%	up to 30 years old	Go
   up to 30,000 rub.	from 8.7%	up to 25 years	Go
   up to 30,000 rub.	from 8.7%	up to 25 years	Go

1. Restructure a loan - change the mortgage payment schedule, extending payments over a longer period. As a result, monthly payments are reduced, and the client can pay off the debt without harming the family budget.
2. Take advantage of installment payments through government support. Families with small children, participants in military operations and other socially vulnerable citizens have the right to subsidies in the amount of 30% of the amount of debts.

Is it possible to save real estate during bankruptcy proceedings?

The only chance to save a mortgaged apartment (house) during the bankruptcy process is to go for restructuring. If the payment schedule is changed by the court or directly by the bank, the borrower will not receive bankrupt status, and his property will not be sold at the debtors’ auction.

This procedure is available to the borrower under the following conditions:

1. there are no outstanding economic convictions;
2. you have income that allows you to pay off your mortgage loan under the new scheme;
3. over the previous 8 years, the citizen has not resorted to loan restructuring;
4. for the last 5 years he has not initiated bankruptcy proceedings.

The parties can also sign a peace agreement. After it is approved in court, the procedure for declaring the borrower insolvent is suspended.

What if you just stop paying?

If the bank does not want to meet halfway, or the borrower himself does not ask for help, the obligations do not disappear anywhere. There is a loan agreement that must be respected. And if the desire to abandon the mortgage is caused by a drop in the level of solvency, a delay occurs.

What will happen in this case:

1. After the delay, the bank will start calling the debtor to clarify the situation. In principle, already at this stage you can indicate your position and say that you want to refuse the mortgage, that you do not intend to pay.
2. The bank can fight with the borrower for several years, and every day penalties will be added to the overdue payment. And since the loan is not paid, the amount of overdue will increase every month.
3. The bank cannot stand it and will sue to take the apartment. The court will take his side, and eviction will be organized.
4. The apartment is sold at auction for pennies, the debt is repaid ahead of schedule. If there is not enough money, the bank can sue and demand the missing funds.

Yes, this is also an option to refuse a mortgage, but it is very specific and problematic. It’s better not to bring it up to him and try to establish a dialogue with the creditor.

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Stages of implementation of the bankruptcy procedure

Expert opinion

Irina Bogdanova

Expert in the field of mortgage lending.

The rules for conducting bankruptcy procedures for individuals are prescribed in Federal Law No. 127 “On Insolvency (Bankruptcy)”. They are standard for all debtors, including mortgage debtors. The whole process lasts about 9 months.

Stages of declaring a citizen financially insolvent:

1. Analysis of debt obligations.
2. Collection of necessary documentation.
3. Submitting a claim to an arbitration court.
4. Trial.
5. Making a decision.
6. Sale of property.

Collection of documents confirming bankruptcy

To initiate a bankruptcy procedure, a citizen will need to provide the following documents:

1. statement;
2. Russian passport or other document confirming the identity of the applicant;
3. certificate of state registration of an individual (for individual entrepreneurs);
4. SNILS;
5. TIN;
6. certificate of income from employment, bank account statement for the previous 3 years;
7. a copy of the work book sheets;
8. title papers for owned property;
9. agreements on all unclosed loans, bank statements on the existence of debt;
10. medical certificates, disability certificates and other official explanations of the reasons for the deterioration of the financial situation.

Sample bankruptcy petition:

Filing an application to the arbitration court

The bankruptcy applicant can submit the collected package of documents along with the completed application to the court in different ways:

1. submit in person to the office;
2. send by mail (registered mail with a list of attachments);
3. through the online service “My Arbitration”.

The court issues a ruling declaring the applicant bankrupt no later than 5 days from the date of filing the application (Article 42 of the Federal Law No. 127).

How to challenge the bank's actions

If the court decides that the apartment is subject to confiscation, then the citizen has exactly 5 days to repay the debt. If during this time it is not possible to find the required amount, then the apartment becomes the property of the creditor and will be sold.

The decision made by the bank can be challenged

To file a claim, the slightest reason to believe that the credit institution acted unlawfully is sufficient. Much depends not only on the current legislation, but also on the terms of the specific mortgage agreement. Before filing a lawsuit against a bank, you need to study all the nuances of the loan agreement and assess the likelihood of success.

In any case, a counter-petition will allow you to delay the decision and gain additional time, during which you can try to find money to pay off the debt.

The procedure is as follows:

1. You are looking for a clue in the contract, legislation and actions of the bank in order to draw up a statement of claim based on this.
2. You fill out the document together with a lawyer so that all points are taken into account.
3. Submit a petition to the judicial authority handling your mortgage case.

If everything is done correctly, you can either win the case, then you can stay in your home, or delay the eviction.

When debts are not written off in bankruptcy

Mortgage debts will not be written off if the bankrupt citizen:

1. brought to justice (administrative or criminal) for fraudulent actions during the insolvency procedure;
2. did not provide all documents or deliberately distorted facts;
3. When applying for bank loans, he knowingly provided false information about his income.

These provisions are regulated by Federal Law 127-FZ “On Bankruptcy” (Article 213.38).

Also, in case of bankruptcy, arrears for alimony payments, compensation for moral and physical damage will not be written off.

Debts on loan payments and mortgages will be closed after the sale of the debtor’s property and settlement of the creditors’ claims. As a result, the borrower is released from further fulfillment of his debt obligations.

Bankruptcy of individuals and foreign currency mortgages

It does not matter in what currency the mortgage is issued - in dollars or rubles. If bankruptcy is initiated, the property will still be collected and sold at auction, and the proceeds will be used to pay off the debt.

Mortgage restructuring through the court

The bankruptcy procedure in court can be used as a way to fix debt. This is done so that it is possible to restructure the loan (when it is not possible to continue paying according to the established schedule).

As a result of restructuring through bankruptcy in court, it is possible to:

1. suspend the accrual of interest and penalties;
2. receive a deferment of up to 2 months to draw up a new mortgage payment schedule;
3. temporarily not to pay on all existing loans.

Expert opinion

Irina Bogdanova

Expert in the field of mortgage lending.

This procedure can last up to 3 years if approved by creditors, 2 years - without their consent, according to the court.

Postponement of the sale of a mortgaged apartment through bankruptcy proceedings

When a credit institution files a lawsuit to collect debt on a mortgage loan, the borrower is unlikely to have time to return to the approved payment schedule. Then the sale of property is inevitable. The only way out is to agree with the bank to defer the execution of the court decision. Typically, the sale of a collateral property can be postponed for a maximum of 12 months.

Is it possible to refuse a mortgage after approval?

Sometimes the intention to take out a mortgage disappears even before the loan agreement is signed. And this is the simplest situation from which you can get out without problems. You can calmly tell the bank that you have changed your mind if:

• you applied for a mortgage online and received pre-approval;
• you bring your documents to the bank and receive final approval indicating the amount;
• you have collected a package of documents for the property being purchased, the bank has checked it and agreed to accept it as collateral;
• the contract was signed, but the transaction was not registered in Rosreestr, ownership rights were not formalized, the seller did not receive the money.

That is, at any stage of registration, you can tell the bank that you have changed your mind about concluding a loan agreement. Even if the agreement is signed, you can write to the bank an application to refuse it and simply not register the transaction.

The loan transaction is finalized at the moment of transfer of money. If the money is not transferred, the loan agreement has no legal force.

How is the sale of a mortgaged apartment and other property going?

The apartment of the bankrupt borrower, which was purchased with a mortgage, will be included in the bankruptcy estate - it includes all property owned by the debtor. Sales take place on public auction platforms (Article 131 of Federal Law-127 “On Bankruptcy”).

Standard scheme for selling a mortgaged property:

1. The apartment is assessed (based on data from the mortgage agreement or an independent expert report).
2. An electronic platform is designated where trading will take place (for example, the online service arbitat.ru).

3. Implementation is underway.
4. The proceeds go to settle the claims of creditors, the remainder (if any) is given to the bankrupt.

Expert opinion

Irina Bogdanova

Expert in the field of mortgage lending.

Part of the property may be excluded from the bankruptcy estate: furniture, small household appliances, personal clothing, cars, etc. (Article 456 of the Code of Civil Procedure of the Russian Federation).

Is it possible to refuse a mortgage after the transaction?

Now let's consider another situation. When the transaction is finally completed, the contract is signed, registered in Rosreestr, a bank encumbrance is placed on the property, and the buyer receives the money. This situation can no longer be reversed; it is impossible to terminate the contract and the deal.

Why:

1. The seller has already received the money, which means that, according to the law, the loan transaction is considered fully completed and the loan agreement has entered into legal force.
2. An encumbrance has been officially registered on the property and a mortgage has been drawn up. This data is reflected in the extract from the Unified State Register.
3. A purchase and sale agreement has been concluded, the seller has received money, and the transaction for this part is also completed.

That is, terminating the mortgage agreement is technically impossible. A mortgage can only be waived by fully paying off the debt to the bank.

How much does personal bankruptcy cost?

Costs associated with bankruptcy proceedings:

1. state duty - 300 rubles;
2. services of a financial manager - 25 thousand rubles;
3. entering information on the Fedresurs portal - approximately 10 thousand rubles;
4. postal costs and other payments - from 5 to 15 thousand rubles.

In total, all costs will amount to about 70 thousand rubles. But this does not guarantee a successful outcome. You can hire an experienced lawyer, but he will have to pay about 150 thousand rubles more.

Consequences of bankruptcy of an individual

Possible consequences of bankruptcy proceedings for the initiator:

1. a ban on registering your own business and assuming a leadership position over the next 3 years;
2. taboo on purchasing shares, shares in LLC;
3. the need to notify about bankruptcy every time you apply to a bank or microfinance organization for a loan (within 5 years);
4. inability to temporarily travel abroad;
5. cancellation of documents permitting business activities

A reminder of what you need to know about personal bankruptcy with a mortgage

A mortgage debtor who has initiated bankruptcy proceedings should take into account a number of nuances:

1. the status of an insolvent citizen will not help preserve housing purchased with a housing loan (even if it is the only one);
2. It is reasonable to initiate bankruptcy due to mortgage arrears if there are other debts on loans, utilities, and taxes;
3. reorganization is mandatory only when the amount of debt exceeds 500 thousand rubles; if less, an individual can independently (if desired) file a claim in court;
4. the process of declaring a citizen bankrupt can last 9 months (about 3 months are spent on court proceedings, the rest of the time on the sale of property);
5. for fraudulent actions during the procedure, the applicant will face criminal liability - imprisonment for up to 6 years (Articles 196 and 197 of the Criminal Code of the Russian Federation).

It is unacceptable to hide your financial situation and existing property in the information provided. If such a fact is revealed as a result of the inspection, the citizen will be recognized as an unscrupulous debtor and will be refused to write off debt obligations. An unemployed applicant is advised to register with the labor exchange before filing a claim.

It is advisable to resolve all problems with mortgage loan payments without the intervention of higher authorities . If you find a compromise with a credit institution, it is likely that you will be able to save your apartment (house) and avoid unnecessary expenses that will inevitably arise during the trial.