When does the court cancel a restructuring plan?
Article 213.23(1) sets out three grounds. Keep them separate: disproving payment arrears does not itself resolve an allegation of inaccurate information in the documents.
| Ground | What is checked | Practical action |
|---|---|---|
| Inaccurate information in the plan and attachments | Which information is incorrect and the supporting evidence | Compare the draft, attachments and primary records |
| Failure to notify creditors of Article 213.13(2) circumstances | A relevant creditor or authorised-body motion and failure to notify | Check disclosures and notification evidence |
| Non-performance of plan obligations | A motion from a creditor or authorised body included in the plan and performance at the hearing | Reconcile the schedule, recipient details, credited payments and balance |
The Article 213.13(2) notification duty concerns specified facts: listed types of administrative liability, known criminal and administrative cases against the individual, unspent or unexpunged convictions, and earlier bankruptcy decisions or performed plans within the specified eight-year period. These disclosures are included in the plan. This is not a general rule making any change in everyday circumstances an automatic cancellation ground.
Who can seek cancellation for non-performance?
A bankruptcy creditor or authorised public body may apply where the obligation to that applicant remains unperformed and its claim is included in the plan. Evidence that a copy of the motion was sent to the debtor must be attached.
The court considers the motion within fifteen days of receipt. This is a court consideration period, not a newly guaranteed payment extension. Article 213.23(2) links cancellation to obligations remaining unperformed under the plan at the hearing date.
- 1. Applicant
Is its claim included and its obligation unperformed? - 2. Notification
Is there evidence of sending the debtor a copy? - 3. Payments
What was scheduled and performed by the hearing? - 4. Court decision
Grounds are assessed within the bankruptcy case.
What should the debtor do after receiving the motion?
Check the calculation
Compare dates and amounts under the approved schedule with statements. Distinguish overdue instalments from sums not yet due.
Prove performance
Retain payment records, statements, payment descriptions and recipient information. Check returned transfers and incorrect details.
Prepare objections
Identify the disputed ground, provide a calculation and attach evidence. Simply saying “I paid” is insufficient.
If non-disclosure or inaccurate information is alleged, provide evidence addressing that particular ground. Timely attendance and written submissions allow supporting material to be presented before the decision. Not receiving a copy does not establish that no motion was filed.
Hypothetical example, not a reported case. RUB 30,000 falls due on the 10th under the plan. The creditor alleges non-receipt. If funds were credited before the hearing, provide evidence of credit and check for other arrears. If the transfer was returned, a payment instruction alone does not prove performance. Paying one instalment does not eliminate separate grounds involving documents or notification.What follows cancellation?
Under Article 213.23 the court issues a cancellation order and a decision declaring the debtor bankrupt. Article 213.24 provides for asset realisation. Its initial period is no more than six months; further extension is permitted, so completion in exactly six months is not guaranteed.
Claims included in the cancelled plan are recorded in the register in the portion that must be satisfied at cancellation and are satisfied as third-priority claims under Article 213.23(4). Reconcile the amount with repayments already made: cancellation does not entail collecting paid amounts twice.
Cancellation is not equivalent to refusal to discharge every debt. Discharge is assessed at the end of asset realisation under Article 213.28. The debtor’s conduct and statutory exceptions matter. False information may affect later discharge assessment, but one judicial decision must not be substituted for another.
How is cancellation different from amendment?
If objective obstacles prevent performance, promptly consider amending the schedule or extending the plan. Article 213.20 provides a separate mechanism requiring its own grounds and court decision. Merely submitting an amendment proposal does not invalidate the existing schedule.
The restructuring guide explains initial requirements and approval. Refusal to approve a draft, cancellation of an existing plan and later discharge are distinct stages with different grounds.
Frequently asked questions
Is the plan automatically cancelled after the first missed instalment?
No. Cancellation is by the court. For non-performance, Article 213.23 provides for a relevant creditor or authorised-body motion and assessment of performance at the hearing.
Can any creditor seek cancellation for a schedule breach?
Under Article 213.23(2), the applicant must be a creditor or authorised body owed an unperformed obligation and included in the plan.
Are fifteen days allowed for voluntary payment?
This is the statutory period for the court to consider a received motion. Check the actual hearing date and existing schedule.
Are all debts immediately discharged after cancellation?
No. A bankruptcy declaration and asset realisation follow. Discharge is a separate completion issue under Article 213.28.
Does paying arrears remove every cancellation risk?
Payment matters to non-performance, but does not automatically disprove inaccurate information or notification failures.
Legal sources
- Law No. 127-FZ, Article 213.23: cancellation grounds, motion and consequences.
- Article 213.13: required creditor disclosures.
- Article 213.24: bankruptcy declaration and asset realisation.
- Article 213.28: completion and discharge.
- Article 213.20: amendments and extension.
Check the alleged ground and evidence
For a consultation, prepare the approved plan, creditor motion, payment records and hearing date. These help assess the calculation and possible procedural position.
Discuss the situation →