Sergei Bakeshin has commented for the DP on the impact of the bankruptcy moratorium on the financial performance of collectors

According to the results of 2021, collection agencies in St Petersburg managed to increase their own assets by more than a third and earn a record profit in the history of the legal collection market.

Nevertheless, as Sergei Bakeshin, Head of Dispute Resolution & Insolvency practice at Maxima Legal, commened for the Delovoy Peterburg newspaper, it is difficult to give a forecast on the financial results of collection agencies for 2022. “Now there is a six-month moratorium on filing bankruptcy petitions, the consequence of which is the suspension of enforcement proceedings and the accrual of penalties and fines on debts incurred before the moratorium was introduced. As a result, revenues and profits of debt collectors can be expected to decrease considerably. Their assets, however, may continue to grow as banks and other creditors are interested in writing off bad debts from their balance sheets,” the expert explained.

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