Lawyer Pavel PetrovLawyer Pavel Petrov

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Non-Discharge of Debts in Russian Personal Bankruptcy

Discharge after asset realisation is the general rule; non-discharge is an exception that the Russian court must connect to proven circumstances under Article 213.28. Not every debtor error automatically preserves every debt. The court examines the conduct, its link to a particular obligation and facts established by judicial acts.

General rule

After completion, the debtor is normally released from further creditor claims.

Debtor conduct

Fraud, malicious evasion, false information or concealment may prevent discharge.

Surviving claims

Maintenance, life or health injury, current claims and other statutory categories remain.

Grounds for Non-Discharge

Article 213.28(4) covers final criminal or administrative liability for bankruptcy misconduct, deliberate or fictitious bankruptcy in the case; failure to provide necessary information or knowingly false information established by a judicial act; and proven unlawful conduct in creating or performing an obligation. Examples include fraud, malicious debt evasion, tax evasion, knowingly false credit information and concealment or intentional destruction of property.

Non-discharge is not a punishment for poverty. Supreme Court guidance treats it as an exception protecting socially important claims and preventing abuse.

Claims That Always Survive

Current claims, compensation for life or health injury, wages and severance, moral harm, maintenance and claims inseparably linked to the creditor survive. Article 213.28(6) also preserves controlling-person liability, specified losses and property harm caused intentionally or by gross negligence, and consequences of transactions invalidated under Articles 61.2 or 61.3.

Court Process

  1. The creditor identifies a precise statutory ground and supporting evidence.
  2. The debtor discloses records, explains transactions and addresses intent and causation.
  3. The practitioner reports cooperation and discovered facts.
  4. The court assesses conduct, causal link, materiality and existing judicial acts.
  5. The conclusion appears in the completion order or a later order if the facts emerge afterwards.

Documents for the Debtor

  • a complete list of accounts, assets, income and transactions;
  • loan applications and information supplied to lenders;
  • correspondence and responses to the practitioner;
  • evidence explaining default and settlement attempts;
  • an explanation for each disputed transfer;
  • judicial acts concerning allegedly non-dischargeable claims.
SituationLikely resultKey question
Ordinary insolvency with full disclosureNormally dischargedDid the debtor cooperate in good faith
Knowingly false information to court or practitionerPossible non-dischargeWas the fact established judicially
Unlawful conduct creating the debtThe related claim may surviveAre conduct and connection proved
Maintenance and life or health injurySurvive by lawWhat remains unpaid
Controlling-person liability and specified lossesSurvive under paragraph 6Does the claim fit the exact statutory category

Frequently Asked Questions

Does every default prevent discharge?

No. Insolvency and default alone are not the same as unlawful or bad-faith conduct.

Is an unfiled creditor claim discharged?

The general rule includes unfiled claims, subject to Article 213.28 exceptions, including claims unknown to creditors at completion.

Can only one debt survive?

Yes. The effect depends on the ground; misconduct may relate to one obligation, while statutory categories survive independently.

Is the issue decided at completion?

Usually, but a separate later order is possible where the statutory circumstances emerge after completion.

How can risk be reduced?

Provide complete information promptly, retain records, explain transactions and comply with lawful court and practitioner requests.

Official Sources

Related guides: debts that survive bankruptcy, termination of proceedings and transaction avoidance.

Concerned About Non-Discharge?

An initial consultation can review records, disputed transactions and creditor arguments before the court hearing.

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This material is general information. The commercial court determines discharge on the evidence in the particular case.