Lawyer Pavel PetrovLawyer Pavel Petrov

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Russian Sole Proprietor Bankruptcy: Debts, Assets and Consequences

A Sole Proprietor Uses Citizen Bankruptcy with Additional Business Rules

A Russian sole proprietor has no separate property shell, so personal and business liabilities are analysed in one case. An active sole proprietor publishes a notice of intended filing at least 15 calendar days before the judicial petition.
BlockReviewRisk
Sole proprietor statusRegistration and cessation datesWrong filing process
Business debtsTax, rent, suppliers and employeesOmitted creditor
Personal debtsLoans, guarantees and utilitiesIncomplete registry
PropertyPersonal and business-use assetsConcealment
LicencesRegulated activityCancellation on judgment

Fix status at filing

Obtain a current business-register extract and review licences.

Reconcile all debts

Personal and business labels aid analysis but do not create two debtors.

Publish intention on time

Evidence the active proprietor’s fifteen-day notice period.

A Bankruptcy Judgment Terminates Active Sole Proprietor Registration

Article 216 of Federal Law No. 127-FZ links the bankruptcy and asset-realization judgment to termination of registration and cancellation of licences. After completion, a five-year restriction applies to entrepreneurship and management of most legal entities unless a statutory exception applies. Discharge follows Article 213.28: tax or business origin alone does not remove the general framework, but personal, current and other surviving claims need separate review. Use one chronology for every conclusion: proprietor status, debt creation, transaction, petition acceptance, bankruptcy judgment and completion. Business-register, insolvency-register, tax, bank and court records must relate to the specific event. A search result saying “bankrupt” does not show whether the court applied Article 216 consequences, so read the full operative order. Before filing, retain primary records, accounting exports and counterparty correspondence. Reconstructing data is harder after account restrictions or loss of access. Do not promise off-priority payment or backdate documents that did not exist; those steps weaken the evidence and may affect discharge.

Before a Proprietor Petition

Former proprietor bankruptcy · Business-use property