Bankruptcy of an absent debtor is a simplified Russian procedure used where an individual debtor, or the head of a legal entity that has ceased operating, is absent and cannot be located. The amount of the debt does not by itself bar an insolvency creditor from applying, but the applicant must prove the special statutory ground.
Short answer. Observation, financial rehabilitation and external administration are not introduced. Under Article 228, the court considers opening liquidation proceedings for a company or the sale-of-property procedure for an individual. This does not guarantee discharge, immediate liquidation or a short overall case.
When the simplified route may apply
| Possible ground | Evidence to examine |
|---|---|
| The individual debtor or company head is absent | Cessation of activity and inability to establish the person’s location |
| Company assets are clearly insufficient even for case costs | Asset, account and anticipated-cost records |
| No operations on the company’s bank accounts for the previous 12 months | Bank information covering the statutory period |
| Other signs of discontinued business activity | Objective evidence assessed as a whole |
Article 230 extends the absent-debtor rules to specified inactivity and asset-deficiency situations. The commercial court decides whether the evidence meets the statute.
Who may apply
Under Article 227, an insolvency creditor or authorised state body may file regardless of the amount owed. An authorised body may do so only where funds required to finance the procedure are available. Proof of the debt does not replace proof of absence or another Article 230 ground.
Procedure
- Investigate the ground. Check registered addresses, management, accounts, assets and actual business activity.
- File the application. State the precise simplified-procedure ground and attach supporting evidence.
- Court decision. Article 228 sets a period for the opening decision; it does not promise that the whole insolvency case will end within that period.
- Notify creditors. The insolvency practitioner writes to known creditors. They may submit claims within one month after receiving the notice.
- Search for assets. If assets sufficient to cover case costs are found, the practitioner may ask the court to move to the ordinary procedures.
Absent debtor versus a company already in liquidation
These are related but distinct statutory routes. A liquidating-debtor case concerns a legal entity already subject to a liquidation decision whose assets are insufficient. The absent-debtor route focuses on inability to locate the debtor or management, or the inactivity signs in Articles 227 and 230. One ground should not be substituted for the other.
Creditor checklist
- current corporate-register or other registration information;
- delivery attempts to all known addresses;
- enforcement and asset-search information;
- bank-account activity for the required period;
- known assets, receivables and transactions;
- a realistic plan for mandatory case costs.
Where the debt has already been established, also review the creditor bankruptcy application guide and the overview of liquidation proceedings.
Frequently asked questions
Is unanswered correspondence enough?
No. It may support the case, but the court examines all evidence of inability to locate the relevant person or discontinued activity.
Is there a minimum debt threshold?
For an Article 227 application by an insolvency creditor or authorised body, the debt amount is not by itself a restriction. The other filing conditions and evidence still apply.
Does the company disappear immediately?
No. The decision opens a procedure in which the practitioner identifies creditors, assets and other circumstances.
What if assets are discovered?
If they are sufficient to cover court costs, the practitioner may seek transition from the simplified route to the ordinary procedures.
Official sources
Need to assess the simplified-procedure ground?
An initial consultation can examine debtor status, evidence of absence and the funding risks of the case.