Using a trusted person’s bank card during Russian personal bankruptcy does not make the debtor’s money belong to someone else, or turn the account holder’s money into the debtor’s property. The account owner, source of each receipt and actual purpose of transactions must be established. Card details are only a payment and access tool; debtor income and settlements through a relative’s account must still be disclosed.
A card and a bank account are not the same thing
Primary and supplementary cards may provide access to one account. The account agreement is made with a specific customer. Giving another person authority to make permitted transactions does not transfer ownership of the entire balance.
| Situation | Likely treatment | Main risk |
|---|---|---|
| The account holder is bankrupt | The balance is treated as that person’s property unless an exemption is proved. | The administrator reviews spending through supplementary cards. |
| The supplementary cardholder is bankrupt | The third party’s balance is not automatically included in the debtor’s estate. | Ownership and source of funds may need to be documented. |
| The debtor sends salary to a relative’s account | The money may be treated as effectively belonging to the debtor. | Suspicion of concealed income. |
| The cardholder only buys goods for the account holder | Access alone does not change ownership. | Transactions should have a clear purpose. |
Three questions the administrator will ask
- Whose account is it? Who signed the agreement with the bank?
- Whose money is it? Who earned or deposited the funds?
- Who benefited? Were payments made for the account holder or for the debtor?
If the primary account holder is bankrupt
During the asset-realisation stage, the financial manager controls funds included in the bankruptcy estate. Supplementary cards held by a spouse, child or another person do not remove the account balance from the estate. Statements and transactions, especially large transfers or cash withdrawals shortly before filing, may be reviewed.
If the supplementary cardholder is bankrupt
Access to another person’s account does not mean that its full balance belongs to the debtor. Yet a formal explanation may be insufficient where the debtor’s own salary or business revenue was paid into that account. Using a relative’s account as a substitute for one’s own immediately before bankruptcy may lead to a dispute and, if bad faith is proved, refusal of discharge.
Can the debtor use a trusted person’s card?
A power of attorney authorises transactions on behalf of the account holder but does not change ownership. Giving the debtor a trusted person’s card or payment details also does not alter the legal character of the funds. The authority, source of money and real transactions must be proved. Where the account mixed the holder’s own money and the debtor’s money, statements, contracts, receipts and explanations are needed to separate them.
- salary, self-employment income and other debtor receipts must be disclosed regardless of the receiving account;
- the account holder’s money should be supported by that person’s income and transaction purposes;
- cash withdrawals and unexplained transfers increase the risk of a dispute with the financial manager;
- a transparent arrangement for protected payments through the debtor’s main account is usually safer.
How an insolvency administrator may identify use of another person’s card
An insolvency administrator does not receive an automatic list of every third-party card used by the debtor. The review is based on lawfully obtained information and a comparison of facts: statements for the debtor’s and spouse’s accounts, transfers between connected persons, documents showing the source of funds, payment purposes, explanations and materials in the bankruptcy case.
Transfers and recurring payments
Repeated transfers to a relative’s account, returned funds and payment of the debtor’s expenses can be compared with the debtor’s income and obligations.
Connection with the account holder
Relevant facts include the relationship, who funded the account, who controlled the money in practice and who received the economic benefit.
Documents and explanations
The account agreement, statements, income records, receipts and a clear payment purpose help distinguish the account holder’s funds from the debtor’s funds.
What to disclose to the insolvency administrator
- the supplementary card and the holder of the linked account;
- regular payments by the debtor into that account;
- large transfers and cash withdrawals;
- any power of attorney and its limits;
- documents showing that funds belong to another person.
Frequently asked questions
Will another person’s account be included in my estate?
Not automatically. The administrator may nevertheless investigate and bring a claim if the account was used to hold the debtor’s money.
Can I keep using my spouse’s supplementary card?
Access is not universally prohibited, but transactions must be transparent. Written disclosure to the administrator is the safer course.
What proves ownership?
The bank agreement, statements, income records and documents explaining large payments.
Can the administrator obtain a relative’s statements?
Where there are sufficient grounds, information may be obtained through the legally prescribed process, including a court request.
Legal basis: Russian bank-account rules and Articles 213.25–213.28 of Federal Law No. 127-FZ. The assessment depends on the origin of the money and the parties’ conduct.
Official sources
- Article 213.9 of Federal Law No. 127-FZ: administrator’s powers and the debtor’s disclosure duty (Russian)
- Article 845 of the Russian Civil Code: bank-account agreement and Article 847: authority to operate an account (Russian)
- Russian Supreme Court review of 11 October 2023 on insolvency administrators’ participation in bankruptcy cases (Russian)
Related materials
Need your transactions reviewed?
At a paid initial consultation, we will examine the account holder, statements and risks arising from a supplementary card.
The Name on the Plastic Does Not Determine Ownership of the Money
| Scenario | Check | Main risk |
|---|---|---|
| Additional card to spouse account | Agreement and account owner | Mixing family funds |
| Another person’s card for salary | Source and income recipient | Concealment |
| Parent account for child benefit | Award and purpose | Mixing child funds |
| Corporate card | Expense report and receipts | Personal spending |
| Expense reimbursement | Underlying documents | Misclassification as income |
Obtain bank documents
Use the account agreement, cardholder list and full statement.
Trace the money
Sender, purpose, beneficiary and actual spending must be explained together.
Disclose the connection
A voluntary explanation is safer than discovery through an inquiry.
Another Person’s Card Is Not a Lawful Route to Preserve Income
Estate ownership follows the debtor’s property rights, not the name printed on a card. If the debtor’s salary, business proceeds or loan repayment is sent to a relative’s account, the entitlement and transfer circumstances still require disclosure. The reverse is also true: access through a spouse’s additional card does not make the entire balance the debtor’s property. Use the agreement, statements, source documents and a clear separation of expenses. Use of an additional card during asset realization also does not override Article 213.25 controls; an attempted bypass may affect good-faith findings.