Bankruptcy : insolvency criteria.

A legal entity may be subject to bankruptcy proceedings if it has failed to satisfy the claims of its creditors or to make obligatory payments to budget within three months of the due date, provided that the overdue amount exceeds RUR 100,000 (approximately USD3,500).

Individuals may be subject to bankruptcy proceedings if their debts exceed the value of their assets and the overdue amount is at least RUR 10,000 (approximately USD350).

Claims include those owed for goods delivered or work/services provided; loans (both principal and interest); amounts payable as a result of unjustified enrichment; and damages. However, when determining whether or not bankruptcy proceedings may be initiated, amounts owed as salary or severance payments, authors' fees or dividends (or similar payments payable to shareholders) are not taken into consideration.

Obligatory payments include taxes, duties, and any other obligatory payment to the Government, under exception of penalties or other sanctions.

 

 

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