The character of a person can be guessed by his attitude towards debt. Some people cannot sleep peacefully if they have not returned the hundred rubles they borrowed for travel on time. For others, multi-thousand-dollar debts do not cause any moral torment. Obviously, failure to fulfill obligations has a bad impact on both the well-being of the creditor and the state of the economy.
But how to deal with this? Alas, there are no effective mechanisms for working with debtors. Of course, they can be prohibited from traveling abroad or driving a car. Collect half of the starvation wages. What if we act radically - put him in prison? After all, there were “debt pits” in the Russian Empire.
As they say, I like this kind of feudalism. Let’s understand the legislation and find out which debts you can get imprisoned for and which ones you can’t.
Loans
Russians don’t pay their loans – that’s a fact. In 6 months In 2021, bailiffs had 12 million enforcement proceedings to collect loan debts. The total amount of “overdue payments” to be paid amounted to 2.3 trillion. rubles Are all these millions of people potential criminals?
Not really. Criminal liability in the field of loans arises for:
- Applying for a loan to other people by deceiving them. A “hanger” (victim) is used, to which the fraudster takes a loan for a fee. Liability is provided for in Article 159 of the Criminal Code of the Russian Federation; the initiation of a case often occurs with several victims. If you try really hard and cause damage worth 12 million, you can end up in prison for a term of 3 to 10 years with a fine.
- Providing the bank (lender) with false information in order to obtain a loan.
Late repayment of a loan in itself will not entail liability. But if, in the absence of payments, it turns out that unreliable or false information was provided, liability is possible under Article 159.1 of the Criminal Code of the Russian Federation. If damage exceeds 6 million rubles, imprisonment for up to 10 years with a fine will apply. This is interesting! In 2021, 1,866 citizens were convicted under Article 159.1 of the Criminal Code. Of these, 28 people are in the “hardest” fourth part. But one accused under Part 4 of Article 159.1 of the Criminal Code of the Russian Federation was acquitted. - Taking out a loan without the intention of repaying it. The most exotic option, because it is not easy to prove intent to defraud a bank. But if the stars align, criminal liability will shine under Article 159 of the Criminal Code of the Russian Federation.
Fraud in obtaining loans: when there is a threat of criminal liability
The bank may demand criminal liability for the borrower if fraud or other illegal actions were committed when applying for loans. Here are a few reasons why a borrower may be sent to court:
- if the borrower took out a loan, but initially did not plan to repay the money;
- if forged documents or deliberately false information are submitted with the loan application, which influenced the bank’s decision;
- if the borrower has committed other illegal actions, deceived bank employees, or misled them.
For credit debts, several articles of fraud may apply at once. For example, there is a special offense for fraudulent actions with bank cards in the field of cybersecurity. Punishment for fraud occurs if the damage to the creditor is significant, but not less than 5 thousand rubles. If the damage from the borrower’s actions does not exceed 5 thousand rubles, he will be punished under the Code of Administrative Offenses of the Russian Federation.
Business debt
Legal entities and individual entrepreneurs also like to borrow funds and not pay them back. Moreover, “legal lawyers” deceive not only banks, but also each other. Especially for such situations, the legislator provided for Part 5 of Article 159 of the Criminal Code of the Russian Federation. It is possible to initiate a case if the offender deliberately fails to fulfill his or her obligation.
, which entails damage of 10 thousand rubles and more.
Important!
In 2021, 66 people were convicted under this article, and 7 of them were sentenced to imprisonment.
Example: one entrepreneur takes an advance from another to complete work (contract), and uses the money to pay off existing debt. Another option is to accept funds when it is obvious that it is impossible to fulfill the obligation (as a rule, this involves the preparation of fictitious documents). This article is rarely found in practice, the maximum penalty is 5 years in prison
.
Malicious evasion of loan repayment
Article 177 of the Criminal Code of the Russian Federation is reminiscent of the practice that existed in the Russian Empire. However, the rule is applicable only to the head of the company or to a person. To initiate a case you need:
- a judicial act on debt collection that has entered into legal force (for example, a court decision or a ruling on a court order);
- large amount of liability (2.25 million rubles or more);
- a real opportunity to pay off the debt, which the criminal did not take advantage of.
And also - the investigator’s desire to understand the specifics of the case.
. As a result, for the entire 2021, only 57 people were convicted under Article 177 of the Criminal Code of the Russian Federation, and 3 were acquitted. This is a fairly high percentage, much higher than the statistical average.
Duty to the common man
There is a risk of being investigated, even if a person does not take money from banks and is not engaged in entrepreneurial activities
. This scheme is as old as the world: by deceiving acquaintances and strangers, a swindler accumulates debts. The specificity of our legislation is that a law enforcement agency can intervene only if fraud is obvious.
Then the case will be opened under Article 159 of the Criminal Code of the Russian Federation, and the attacker will certainly be convicted. But this is unlikely to lead to the repayment of debts. To initiate a case, you need many victims and the obvious impossibility of fulfilling obligations. The investigation sometimes drags on for years. Fraudsters most often spend their money on entertainment that does not correspond to their income, and also on gambling.
What to expect for people with problem debt
What the government will do and how the banks will behave can be assumed, but cannot be stated with certainty. Financiers think that we will see improvements in credit legislation, but not complete amnesty and debt forgiveness. As always, the safest solution is to do it yourself if possible, rather than expecting unreasonable improvements. Of course, it is worth monitoring changes in laws and taking advantage of possible relaxations, but you need to check the conditions carefully - if you understand them incorrectly, you may face negative consequences. In any case, it’s worth knowing what borrowers can expect from lenders—and which ones.
From banks
Banking organizations are also suffering losses amid the crisis, which is especially noticeable in the consumer lending segment. In 2021, interest rates may rise or conditions for issuing loans may tighten. But at the same time, lenders are trying to make conditions more attractive for existing borrowers. It is not profitable for the bank itself if a person stops paying. Therefore, if a creditor sees that a client is experiencing difficulties, he increasingly meets halfway:
- offers deferments and credit holidays;
- reduces the amount of payments by increasing the term - this is called restructuring;
- refinances the loan at a new interest rate.
Credit history does not deteriorate after such measures, but such programs, unfortunately, only work for people who have not previously had any arrears. If you have found yourself in a difficult situation before, it may be worth negotiating with the creditor individually - programs are also being developed for people with overdue debts.
From collectors
It may be even more profitable for a borrower to work with collection agencies than with a bank. Collectors who purchased a loan under an assignment agreement do not impose additional fines and penalties, and can also write off and forgive part of the debt. Like banks, it is more profitable for them if the client pays, even a small amount, so agencies often offer borrowers individual flexible repayment terms. For example, EOS always takes the client’s side and helps develop a payment scheme that will not burden him.
From the bailiffs
If it comes to enforcement proceedings and the bailiffs are handling the debt, then in 2021 the FSSP will most likely resume active activities. Last year, service employees were limited in their activities due to events caused by the epidemic, but in 2021 their work is returning to normal. It is expected that bailiffs will act most actively in relation to borrowers of large banks: they regularly remind the FSSP about enforcement proceedings against their debtors. But even in such a situation you can find a way out if you try to agree with the bailiffs on a repayment schedule that is convenient for everyone. There is one more positive change: amendments to Article 446 of the Code of Civil Procedure will prohibit bailiffs from communicating with third parties without written consent and from seizing pets for debt. Previously, arresting a cat or dog was a standard practice; now owners will not have to fear for their pets.
Useful:
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Alimony
Alimony is a monthly amount collected from one parent in favor of the other for the maintenance of children. The problem of non-payment of these funds is so acute that since time immemorial the criminal code has included liability for debt for a child. Article 157 of the Criminal Code of the Russian Federation is popular; in 2021, 37,732 people were convicted under it, and only 4 were acquitted.
It is noteworthy that most often criminals were assigned correctional labor (in 23,745 cases). In order to be held accountable, several factors must come into play. Firstly
, evasion of payment of alimony is committed without good reason. Lack of work is not an excuse, but the presence of illness is a good reason not to transfer funds for maintenance.
Secondly
, the negligent parent must be subject to administrative penalties under Part 1 of Article 5.35.1 of the Code of Administrative Offenses of the Russian Federation. In practice, it’s like this: if you don’t pay alimony for two months, you get a protocol. If you don’t pay the same amount after the ruling, a case is initiated. Since funds for the maintenance of children must be transferred for many years, the risk of becoming a criminal is very high.
Summary. Getting out of debt is difficult, but possible
Attitudes towards criminal prosecution for unfulfilled obligations vary greatly depending on the person’s situation. While debtors advocate relief from liability, creditors see justice as the only effective way to deal with the problem. The state has taken an intermediate position and uses criminal prosecution in relatively rare cases. Most often - for alimony.
In order to initiate a case, there must be malicious intent in the actions of the debtor
. This is either evasion of child support - the sacred duty of every parent. Or fraud: deception of the bank, citizens, business partners. Or failure to comply with a court decision, but only for large debts and with a real possibility of repaying them. Therefore, do not accumulate debts - it may come back to haunt you.
The procedure for bringing to criminal liability for debts
Only the court can make sentences in criminal cases. Before the case is brought to court, an inquiry and/or investigation is carried out. Depending on the elements of the crime and the stage of recovery, the inquiry and investigation may be carried out by employees of the FSSP, the Ministry of Internal Affairs, and the Investigative Committee of the Russian Federation. The accused can only be an individual.
If a legal entity received a loan based on unreliable documents or information, or is in arrears on a large scale, then a criminal case may be initiated against the manager, chief accountant, or founders of the company. The legal entity itself is not held criminally liable.
Who can demand initiation of criminal proceedings
The formation of debt violates the interests of creditors under the obligation, since they cannot receive the money due. Banks, microfinance organizations, collectors of alimony or other types of debts may require the initiation of a case.
Let us note that when conducting enforcement proceedings, bailiffs are obliged to check themselves whether grounds for criminal liability for debts have arisen. If there are such grounds, the FSSP employee is obliged to initiate a case and begin an investigation, or transfer the materials to the Ministry of Internal Affairs.
Inquiry and investigation
If the debtor becomes a suspect or accused, he has the right to involve a lawyer in his defense. It is better to do this as soon as the FSSP or law enforcement agencies have opened a case. During the inquiry and investigation the following activities will be carried out:
- send requests to identify the debtor’s place of work, source of income and confirm their amount;
- will interrogate the debtor and check documents to establish the reasons for evading debt repayment;
- They will check the debtor’s property status and whether he has the ability to pay his obligations.
The amount of damage for the items listed above is quite easy to confirm. To do this, you need to check the court decision and writ of execution, materials produced by the FSSP.
What is the penalty for debts?
Real imprisonment for debt can only be obtained in exceptional cases. Usually, for such crimes, the court imposes a large fine, or sentences the debtor to arrest, probation, or various types of forced labor. However, for alimony debts you can be imprisoned for up to 1 year. Loan debt can result in a prison sentence of up to 2 years.
What are the consequences of being convicted of debt?
After the court verdict, you will have to serve the assigned sentence, i.e. pay a fine, serve imprisonment, fulfill other sanctions. Also, the obligation to pay debts will not be lifted, so creditors will be able to continue collection. Criminal liability entails a criminal record for the debtor. Consequences of a criminal record:
- problems in finding work and finding employment, since many positions and professions with a criminal record will not be hired;
- if you have a criminal record, it is almost impossible to get debts written off in bankruptcy;
- for a convicted person, each subsequent crime will be considered as a recidivism, which will significantly increase the punishment;
- the bank will immediately identify a criminal record when considering a loan application and refuse approval;
- Some countries prohibit entry for citizens with a criminal record.
These are just the main consequences that a conviction entails. It can be removed only after the expiration of a certain period, and early cancellation of a criminal record is generally used extremely rarely.
