25.04.09

Chairman of Russia's Supreme Court of Arbitration Anton Ivanov paid a visit to the United States to study consumer bankruptcy experience in order to protect Russian individual debtors in conditions of financial crisis.

Debts collection agencies have mushroomed in Russia, as a growing number of people cannot repay consumer credits because of dismissals, depreciated ruble or reduced salaries. The agencies often resort to intimidation and blackmail in order to hammer out the debts.

"In certain cases the interests of citizens have to be protected," Ivanov told reporters on Thursday, adding amendments to the bankruptcy law, which will cover also private individuals, will be submitted shortly.

"The lawbill has been ready for long and is being considered by the economic development ministry. I believe it will be submitted (to parliament) by summer anyway and may be passed under the first reading," he said.

Ivanov said US experience is fruitful, as it may both protect consumers and help avoid the mistakes that triggered the financial crisis, as people took major unsecured loans hoping to declare themselves bankrupt if they fail to repay.

"A simplified consumer bankruptcy system would be dangerous for us, as it may ruin our banking system," he said.

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Source: Itar-Tass