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More than 1 million Russians potentially bankrupt

More than 1 million Russians potentially bankrupt

According to the National Bureau of Credit Histories, 1.03 million Russian borrowers may declare bankruptcy as of November 1, 2019. The following Russians are subject to the bankruptcy law:

• have a debt of more than 500 thousand rubles;

• no obligations payments for more than 90 days.

The bureau found out what kind of loans lead Russians to potential bankruptcy:

• consumer loans - 65.7%

• microloans - 7.4%

• car loans - 7.2%

• credit cards - 5.2%

• mortgage loans - 2.2%

• liabilities for loans of various types - 12.2%

However, bankruptcy proceedings are rarely carried out, says the General Director of the bureau Alexander Vikulin: “About 10% of the citizens formally subject to this law decide to accept bankrupt themselves. This is primarily due to bankruptcy being a forced and, moreover, “expensive” measure for borrowers, resorting to which is necessary only in extreme cases.”