The number of Russians declaring bankruptcy has significantly increased, with a notable rise in cases among young people. Analysts report a 1.5-fold increase in bankruptcies compared to 2022, and an 8.5-fold surge in simplified insolvency applications.

Young Russians are increasingly turning to bankruptcy due to factors such as easy access to credit, lack of financial planning, and the allure of consumerism. Experts note a trend where young individuals, often students or recent graduates, accumulate debt through credit cards and microfinance organizations to fund lifestyle expenses.

The easy availability of credit and aggressive advertising promising debt relief contribute to the problem. Many young people underestimate the long-term consequences of debt and are unaware of the potential restrictions and losses associated with bankruptcy.

Bankruptcy expert Svetlana Sazonova highlighted the growing number of young individuals seeking bankruptcy, often with multiple loans from microfinance institutions. She advised parents to communicate with their children about finances and monitor their spending habits.

The National Bureau of Credit Histories (NBCH) reports that borrowers under 30 now constitute the largest group for newly issued credit cards, accounting for 27.8% of the total. This trend is particularly pronounced in regions like the Sverdlovsk region, St. Petersburg, and the Moscow region.

Experts warn that creditors are becoming more active in bankruptcy proceedings, scrutinizing transactions and challenging intentional bankruptcies. Courts may impose criminal liability for fraudulent actions, and debts will not be written off in such cases.

To alleviate the burden on arbitration courts, an extrajudicial bankruptcy procedure was introduced in 2020, allowing individuals to apply through Multifunctional Centers (MFCs). Since November 2023, the debt limit for this procedure has been expanded, and eligibility has been extended to include pensioners, recipients of child benefits, and participants in the Special Military Operation (SVO) under certain conditions.