Lawyer Pavel PetrovLawyer Pavel Petrov

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Article 395 Interest in Russian Bankruptcy Proceedings

Short answerArticle 395 interest is statutory liability for late performance of a monetary obligation, not every contractual interest charge. In bankruptcy, the pre-procedure period and the statutory cut-off date are determined first. Ordinary accrual on a register claim is then restricted by the special bankruptcy regime.
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A cut-off date is required

The claim is fixed under Article 4 of Federal Law No. 127-FZ and the applicable procedure.

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The rate changes

The Bank of Russia key rate for the relevant periods normally applies.

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Status controls treatment

Register and current claims follow different rules even when both arise from delay.

Elements of the calculation

ElementRuleFrequent error
PrincipalSupported by contract, performance records, payments and any judgmentCalculating on an unproven amount
Delay periodFrom lawful default to the bankruptcy cut-off or earlier terminationContinuing ordinary accrual after the procedure begins
RateKey rate for each period unless law or contract provides otherwiseUsing one current rate for the whole historic period
PenaltyAnalysed separately; cumulative recovery depends on law and contractAutomatically adding both penalty and Article 395 interest
Keep separate: contractual loan interest, Article 395 interest, penalties and special bankruptcy interest have different legal grounds and calculation rules.

Creditor workflow

Classify the obligation

Identify the debt basis, due date and start of default.

Determine the cut-off

Compare the publication, court order and procedure introduced.

Split the rate periods

Show each period, principal, partial payments and formula.

File components separately

State principal, interest and sanctions on separate lines with their legal grounds.

Evidence

  • contract and creditor performance records;
  • payment demand and delivery evidence;
  • acts, invoices, bank statements and reconciliation;
  • calculation table by day or key-rate period;
  • judgment if the debt was previously adjudicated;
  • evidence of service on bankruptcy participants.

FAQ

Does Article 395 interest continue after bankruptcy begins?

Ordinary accrual on a register debt is displaced by special procedural consequences. Current claims and distinct grounds require separate analysis.

Can penalties and Article 395 interest be recovered together?

Not automatically. Article 395(4) and the contract must be reviewed; duplicate liability generally needs an express basis.

Can interest be charged on interest?

The general rule prohibits compound Article 395 interest unless legislation provides otherwise.

Is a prior judgment mandatory?

Not always, but the creditor must prove the debt and calculation in the bankruptcy case.

Official sources