The number of Russians filing for bankruptcy has surged, with a notable increase among younger individuals, prompting concerns about financial literacy and debt management. According to Kontur.Focus analysts, bankruptcies in 2024 have risen by 1.5 times compared to 2022, while applications for simplified insolvency through the MFC have increased 8.5 times.

Young adults are increasingly turning to bankruptcy due to factors like easy access to credit, lack of financial planning, and unexpected life events. One example is a 25-year-old woman named Katya, who accumulated debt through credit cards used for entertainment and large purchases. After falling ill and experiencing job problems, she resorted to microfinance organizations, leading to a debt of over 500,000 rubles. Similarly, a student named Yegor took out loans for luxury items and vacations, but lost his job and was unable to repay the 750,000 rubles he owed, due to microfinance companies.

Experts emphasize that the perception of bankruptcy as an easy solution, fueled by widespread advertising, contributes to the problem. Bankruptcy expert Svetlana Sazonova notes that young people often take out loans for non-essential items without understanding the consequences. She also highlights a trend of individuals obtaining loans with no intention of repaying them, sometimes using fraudulent means.

Creditors are becoming more vigilant in bankruptcy proceedings, scrutinizing transactions and investigating potential fraud. Courts are also taking a stricter approach, potentially holding debtors criminally liable for fictitious bankruptcy and fraud. This includes challenging transactions made in the three years prior to filing for bankruptcy.

Data from the National Bureau of Credit Histories (NBKI) indicates that borrowers under 30 make up the largest share of newly issued credit cards, accounting for 27.8% in April 2025. This trend is particularly pronounced in regions such as the Sverdlovsk region, St. Petersburg, and the Moscow region.

To address the growing number of bankruptcies, the state is implementing measures such as tightening regulations on microfinance organizations and promoting a self-ban on lending. The procedure for extrajudicial bankruptcy has also been expanded, increasing the debt limit and including pensioners, recipients of child benefits, and participants in the SVO.

While extrajudicial bankruptcy through the MFC offers a simplified process, it is not suitable for everyone, as it requires the debtor to be unemployed and have no income. The debt must also be “sued,” which can take years and involve the seizure of assets.