Loan amnesty in 2021 for individuals

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

The credit amnesty for individuals in 2021 provides for the implementation of the citizen's right to write off loan debt or receive a deferral for the period established by law. The program applies only to a limited number of citizens, in accordance with the legislation of the Russian Federation.

What is a credit amnesty

In Russia, a credit amnesty can be implemented through the provision of mortgage and credit vacations, giving the right to defer payments, as well as under the bankruptcy program and the complete termination of debt obligations.

Who can write off debts

If the bill is adopted, the complete cancellation of debts becomes possible upon the occurrence of the following conditions:

• having an impeccable credit history;
• an increase in the number of dependents;
• the death of a working family member;
• decrease in income for reasons beyond the control of the borrower;
• other circumstances preventing the performance of debt obligations.

In addition, pensioners, disabled people, families with children and other socially vulnerable groups of the population can count on a bank amnesty. When making a decision, the purpose of lending will also be taken into account. For example, for rural residents there is a program for writing off debts on loans taken for the purchase of basic necessities.

Whether there will be a cancellation of debts in relation to other categories of the population is not yet clear.

The main task of the lender is to identify the reasons that prevent the performance of debt obligations. The program can be implemented if:

• the client does not have the opportunity to pay off the debt;
• the amount of penalties on the part of the creditor is too large;
• debt on current loans does not exceed the values established by law;
• a citizen cannot pay off the debt in full due to his age (for example, more loyal requirements will be presented to pensioners).

Individual bankruptcy

According to the latest news, on September 1, 2020, a new bankruptcy law came into force, establishing a mechanism for conducting the procedure. It applies to citizens whose debt to the bank is 50-500 thousand rubles. Now the debtor can initiate the financial insolvency procedure out of court and completely free of charge.

Recall that according to the norms in force since 2015, the implementation of the program required some material costs, which turned out to be a serious barrier for most borrowers.

The main condition is to conduct enforcement proceedings against the debtor and terminate it due to the lack of funds, as well as liquid property. In other words, the law determines whether the debt will be written off based on the financial situation of the borrower.

To exercise this right, it is enough to contact the My Documents Center (MFC) with a corresponding application. After checking the state of enforcement proceedings, specialists independently post information on the financial insolvency of an individual in the Unified Federal Register. From this moment, the accrual of fines, penalties and interest stops, and after 6 months, a complete write-off of debts occurs, and the citizen is declared bankrupt.

Despite the apparent simplicity of the law, citizens may face some obstacle in the process of its implementation. So, filing an application becomes possible only after the end of the enforcement proceedings. That is, the court proceedings initiated by the MFO or another credit institution must be completed first, after which the bailiffs issue a ruling that it is impossible to collect the debt. According to Dmitry Yanin (head of the board of the Confederation of Consumer Societies), the procedure can take from several months to several years.

Interesting! Tax holidays for individual entrepreneurs in 2020-2021 due to coronavirus

In addition, the FSSP has the right not to terminate enforcement proceedings if the borrower periodically has any income. In addition, a credit institution may decide to transfer debt obligations to collectors, and in this case, there may be no litigation at all.

Simultaneously with the release from credit obligations, the citizen receives some restrictions in his actions: during the six-month procedure for declaring bankrupt, he does not have the right to act as a surety, as well as to reopen loans. If the borrower was an individual entrepreneur, the former borrower is deprived of the right to carry out entrepreneurial activities and hold leadership positions (as well as after bankruptcy by a court decision).

Credit Holidays

Citizens who have documented a decrease in income for objective reasons (for example, due to the coronavirus pandemic) have the right to apply to the bank with an application for a vacation for mortgage and consumer loans.

As it became known from the latest news, in 2021 the credit amnesty can be used for both individuals and private entrepreneurs. The client is given the opportunity to defer payments for up to six months without any sanctions from the credit institution. The bank does not have the right to refuse the borrower a deferral if the latter has fulfilled all the conditions enshrined in FZ-106:

• at the time of contacting the lender, the borrower did not have a credit vacation;
• the client is officially recognized as unemployed or his income has decreased by more than 1/3 (30%) compared to the month preceding the application;
• the amount of the debt is within the limits specified in the legislation of the Russian Federation.

Credit holidays can be obtained by citizens whose debt obligations do not exceed the following amounts:

• for mortgage loans - 1.5 million rubles;
• for car loans - 600 thousand rubles;
• for consumer loans - 250 thousand rubles.

A preferential interest rate is set for the period of the credit indulgence, while the loan maturity is extended.

The borrower has the right to apply to the bank for a deferred payment for up to three months, even if credit holidays are already in force under the agreement. Primary applications are accepted until December 31, inclusive.

Outcomes

Credit amnesty is a special program implemented by providing credit (mortgage) vacations or complete cancellation of debts through bankruptcy proceedings.

Only low-income citizens of the Russian Federation who have debt, the amount of which varies in the range of 50-500 thousand rubles, can count on exemption from debt obligations.

According to the new law, bankruptcy proceedings are carried out out of court and free of charge.