Income is no bar
An employed debtor may still be insolvent where the debt load is disproportionate.
No fixed threshold
Salary matters only together with debts and necessary family costs.
A plan may fit
An income source is one condition for proposing a restructuring plan.
Some funds are protected
Income treatment and protected subsistence are determined separately.
What income permits a filing?
Any income level may be compatible with a filing where the statutory insolvency or asset-insufficiency test is evidenced. A high salary may make a petition unfounded if it permits timely performance. A low income is not automatic proof either: the court checks the full liability list, assets, good faith and supporting records.
What the court compares
| Factor | Evidence | Why it matters |
|---|---|---|
| Stable net income | Employment, pension, self-employment, rent, bonuses and seasonality | Shows real capacity rather than one strong month |
| Necessary expenses | Subsistence, dependants, housing, treatment and documented special needs | Identifies the amount potentially available |
| Debt schedule | Amounts, due dates, arrears, security and enforcement | Compares resources with matured duties |
| Assets | Liquid property, shares, security and exemptions | Affects asset insufficiency and procedure choice |
| Expected change | Job loss, illness, lower orders or ending payments | Must be evidenced rather than assumed |
When income supports restructuring
Having an income source when the plan is proposed is one Article 213.13 requirement. It does not make the plan feasible by itself. The plan must provide proportional repayment, preserve statutory subsistence and use a realistic term. Creditors and the court assess stability, family load and change risk.
If no sustainable surplus supports a feasible plan, asset realisation may follow where the statutory grounds exist. That does not mean every rouble of salary is surrendered: protected amounts and special payments are determined under Article 213.25, Civil Procedure Code Article 446 and enforcement legislation.
Is the income picture ready for court review?
Check the records already collected. Nothing is transmitted.
Documents to prepare
Three-year income file
Employer certificates, tax and pension data, civil contracts, self-employment receipts and bank statements.
Family budget
Dependants, rent or utilities, treatment and other necessary expenses.
Complete debt list
Agreements, schedules, demands, judgments and enforcement files.
Assets and transactions
Land register, vehicles, shares, accounts, securities and review-period transactions.
Forward evidence
Redundancy, contract expiry, seasonality or another documented change.
Two scenarios
Compare a feasible restructuring plan with asset-realisation consequences.
Frequently asked questions
Can an employed person become bankrupt?
Yes. Employment does not exclude insolvency; net income is compared with all obligations, expenses and assets.
Is there a maximum salary?
No fixed maximum. A larger surplus makes plan feasibility and the explanation of insolvency especially important.
Does the debtor keep the whole salary?
There is no general whole-salary exemption. Protected subsistence and special payments follow statutory rules and family circumstances.
Does self-employment income count?
Yes. Receipts, bank statements, seasonality, costs and actual stability matter.
Should a debtor resign before filing?
Artificially reducing income can raise good-faith concerns. Changes should be disclosed and evidenced, not manufactured.
Primary legal sources
- Insolvency Law Article 213.6
- Article 213.13: income source for a plan
- Article 213.14: plan content
- Article 213.25: estate and exemptions
- Civil Procedure Code Article 446
Related guides
Debt restructuring · Money retained for living · Employment and bankruptcy
Need to test bankruptcy against your income?
We can compare income, family budget, assets and debts and review both judicial scenarios.
INITIAL CONSULTATIONGeneral information as at 30 August 2026. Income alone neither proves nor disproves insolvency.