Experts from GRM consulting company forecast an increase in the number of applications for declaring individuals bankrupt to 260,000 in 2021, which is 65% more than in 2020, the company’s press service told TASS.
“In 2021, GRM analysts predict that the 2020 trends will continue: an increase in the total number of applications within 65% against the level of 2020; maintaining the conversion rate of submitted applications to ongoing procedures at a rate of 94%; an increase in debt restructuring procedures to 10% of the total submitted applications,” GRM reported.
In 2020, the number of applications for recognizing individuals as bankrupt exceeded 157,000, which is almost 64% more than in 2019. According to GRM partner, financial consultant Sergey Novikov, the increase in the number of applications was due to both adopting bankruptcy procedures as a civilized instrument for resolving the debtor’s insolvency, and the impact of the negative consequences of the coronavirus pandemic on the solvency of individuals.
“Starting in July 2020, we began to record at least 15,000 filed bankruptcy applications every month. The climax came in December last year, when creditors filed 19,400 such applications,” Novikov added.