Sergei Bakeshin has explained to DP what affects the cost of bankruptcy litigation
‘DP-Analytics. Legal Services Market’ research conducted by Delovoy Peterburg newspaper showed that in the first half of 2024, bankruptcy disputes in St Petersburg were the most expensive in terms of legal support – about RUB 5.7 mn for three instances. At the same time, according to Fedresurs, the region ranked third in terms of the number of corporate bankruptcies in January-June: 288 companies were declared insolvent, which is 43.3% more than in the same period last year. The first and second places are traditionally occupied by Moscow and the Moscow Region with 970 and 429 bankrupt companies respectively.
Sergei Bakeshin, Counsel, Head of Dispute Resolution & Insolvency practice at Maxima Legal, explained to Delovoy Peterburg newspaper what influences the cost of bankruptcy litigation.
‘A bankruptcy case consists of many separate disputes (inclusion of claims in the register, invalidity of transactions, etc.). The number of participants in the process also affects the cost of complex support of the case and the cost of handling a separate dispute, as each creditor can participate in it (to declare its position, submit documents and appeal court acts). An increase in the number of active participants leads to an increase in labour costs for its conduct. The price of the bankruptcy process and its value to the customer also depend on financial indicators, the most obvious being the size of creditors‘ claims against the debtor,’ Sergei explained.