Criteria for establishing a repayment plan in bankruptcy proceedings

When establishing a repayment plan for creditors, the court takes into account the bankrupt’s earning capacity, the need to support the bankrupt and his dependents and their housing needs, and the amount of unsatisfied receivables in bankruptcy proceedings.

In terms of the bankrupt’s earning potential, the court will take into account the bankrupt’s current financial situation, as well as his professional experience, education and health condition.

It should also be taken into account that enforcement restrictions are not binding when establishing a repayment plan. When determining the amount due to repay creditors, the court may take into account the entire financial resources of the bankrupt, including the amount of various types of benefits and other benefits not subject to seizure, including the so-called 800+, and leave at the bankrupt’s disposal an amount less than the lowest remuneration, not subject to seizure. If the assessment of the bankrupt’s overall economic and life situation justifies the belief that he can allocate a certain amount to repay creditors, without undue prejudice to the normal functioning of himself and the people in his household, enforcement limits do not constitute a restriction on the establishment of a repayment plan. In this case, the court takes into account the individual situation of the bankrupt and his dependents. In a given case, it may be justified to provide the bankrupt with an amount higher than the provisions on enforcement limitation for the period of execution of the repayment plan; sometimes it will be justified to establish a repayment plan while leaving at the bankrupt’s disposal an amount lower than the amount not subject to seizure.

The court issues a decision on establishing a repayment plan after a hearing if one of the legitimate entities, i.e. the bankrupt, the trustee and the creditor, has submitted a request for a hearing. If none of the above-mentioned entities has submitted a request for a hearing, the court will issue an appropriate decision at a closed session.