SOLE PROPRIETOR · FILING · CONSEQUENCES
A sole proprietor follows citizen-bankruptcy rules with additional requirements. Preparation starts with status, all debts and funding, not a promise to discharge every obligation.
Legal provisions checked on 6 September 2026.
What to check before filing
| Block | Review | Risk |
|---|---|---|
| Sole proprietor status | Registration and cessation dates | Wrong filing process |
| Business debts | Tax, rent, suppliers and employees | Omitted creditor |
| Personal debts | Loans, guarantees and utilities | Incomplete registry |
| Property | Personal and business-use assets | Concealment |
| Licences | Regulated activity | Cancellation on judgment |
Fix status at filing
The document confirming presence or absence of sole-proprietor status must be obtained no earlier than five working days before filing. Review current licences too.
Reconcile all debts
Personal and business labels aid analysis but do not create two debtors.
Publish intention on time
Under Article 213.4(2.1), publish the intention in the Unified Federal Register of Facts of Legal Entities’ Activities at least 15 calendar days before applying. Keep publication evidence.
Filing grounds and funding
Article 213.4 distinguishes mandatory filing from the right to apply when bankruptcy is foreseeable. RUB 500,000 is part of the statutory combination triggering a filing duty, not a universal prohibition on filing earlier. Evidence debts, insolvency, income, assets and the circumstances in which obligations arose.
The deposit for the manager’s fixed remuneration is not the full case cost. Current Article 213.4(4) requires payment after acceptance of the application and before the hearing on its merits, identifying the case number. Other expenses also need funding. MFC eligibility is assessed separately: lack of money alone does not make a sole proprietor eligible for a free out-of-court procedure.
When does sole-proprietor registration end?
Article 216 links loss of registration and cancellation of licences for individual entrepreneurial activities to a bankruptcy judgment introducing asset realization. Merely filing the petition or entering restructuring is not the same event.
The general rule restricts re-registration and entrepreneurial activity for five years after completion of asset realization or termination of the case during that stage. Management of legal entities is also restricted for five years, and management of credit institutions for ten. Article 216(5) provides a specific exception whose conditions must be assessed rather than assumed.
Which obligations may survive?
A business origin neither guarantees nor prevents discharge. Current claims, maintenance, employees’ salary and severance claims, controlling-person subsidiary liability and other Article 213.28 exceptions require separate review. Concealed assets and false information may affect discharge.
Example: supplier, bank and employee
A sole proprietor owes a supplier, has a personal loan and owes an employee wages. All three must be disclosed, but identical discharge treatment cannot be assumed: the wage claim has special protection. This illustrates classification, not the outcome of an individual case.
Before a Proprietor Petition
Former proprietor bankruptcy · Business-use property
FAQ
Can only business debts be included?
The sole proprietor and the individual are not two debtors. Disclose personal and business obligations, distinguishing them where required.
Must I deregister first?
There is no universal requirement to close first. Compare consequences in light of contracts, employees and the procedural stage.
Can business continue after the bankruptcy judgment?
A sole-proprietor bankruptcy judgment introducing asset realization triggers Article 216. Business cannot continue under an invalid registration; ordinary employment is a separate question.
Sources and preparation
Article 213.4 covers the application, notice and deposit; Article 216 covers consequences; Article 213.28 addresses discharge.
Deregistration before bankruptcy
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