How to Survive on the Subsistence Minimum During Bankruptcy: Legal Nuances, Judicial Practice, and Excluding Additional Amounts

From the moment bankruptcy procedures (debt restructuring or asset liquidation) are initiated, a citizen is temporarily restricted in the right to independently manage their income. According to Art. 213.25 of Federal Law No. 127-FZ "On Insolvency (Bankruptcy)", all property and income of the debtor form the bankruptcy estate. However, the law strictly protects the debtor’s right to basic living funds.

1. Legal Mechanism for Paying the Subsistence Minimum: How Does It Work?

In accordance with paragraph 8, part 1, Art. 446 of the Civil Procedure Code of the Russian Federation, execution cannot be levied upon the subsistence minimum. This means these funds are automatically or upon request excluded from the bankruptcy estate.

Specifics of Calculation and Disbursement:

• Regional Subsistence Minimum Amount: Calculation is made based on the subsistence minimum for your socio-demographic group (able-bodied population, pensioners, children) in the constituent entity of the Russian Federation where you are registered. If the regional amount is lower than the national standard, the norms of Ruling No. 14-P of the Constitutional Court of the Russian Federation apply, using the federal minimum.


• By default, the court proceeds on the basis of an equal obligation shared by both parents (50/50); that is, 50% of the child subsistence minimum is allocated to the debtor. However, if a lawyer proves that the other parent is evading child support obligations or has no income, the court may exempt 100% of the child subsistence minimum in the debtor's favor. Find out the exact figures here.


• Technical Disbursement Process: Wages and pensions are deposited into the bankrupt’s main account. The financial trustee opens a special account or withdraws cash in person at the bank under a special permit (order) and hands it to the debtor against a receipt or transfers it to a card specified by the debtor.

2. How to Officially Increase Payments: Excluding Additional Expenses from the Bankruptcy Estate

The basic subsistence minimum is often insufficient to cover critical living needs. Pursuant to clause 2, Art. 213.25 of Law No. 127-FZ, the Arbitration Court, upon application by the citizen, has the right to exclude property (including money) exceeding the subsistence minimum from the bankruptcy estate.

What the Arbitration Court Allows to be Excluded Beyond the Subsistence Minimum:

Ground / Category	Required Documents and Evidence
Housing Rent	Official residential lease agreement, USRN excerpt confirming no other owned real estate in the area, payment receipts/vouchers.
Treatment and Medications	Doctor prescriptions (including Form No. 107-1/u), pharmacy receipts, certificates of chronic illnesses. Purchases of vital medicines are excluded with nearly 100% certainty.
Child Education Fees	Contract with the educational institution (kindergarten, sports section, university), organization license, payment receipts.
Utility Bills	Utility bills (provided the housing is the sole residence and current service debts should not accumulate during proceedings).

Position of the Plenum of the Supreme Court of the RF: According to Plenum of the Supreme Court of the RF No. 48 (cl. 2), the court must maintain a balance of interests between creditors and the debtor, preserving conditions necessary for a dignified existence for the debtor and their dependents.

3. Step-by-Step Algorithm: How to Secure Payments Without Delays

1. Submitting an Application to the Financial Trustee: Immediately after initiating debt discharge, send an application to the trustee requesting the release of the subsistence minimum, specifying third-party account details or delivery method.


2. Collecting Evidence for Additional Expenses: If you have expenses for medicines or rent, gather a full packet of supporting documents.


3. Filing a Motion in the Arbitration Court: If the financial trustee refuses or if formal approval is needed to exclude rent/medical amounts, file a motion within the bankruptcy case.

4. Practical Tips for Personal Budget Optimization

While the procedure is ongoing (averaging 6–12 months), discipline should be maintained:

• Avoid Current Arrears: Do not accumulate new debts on utility bills or current obligations, as they are not discharged in bankruptcy (Art. 208 of Law No. 127-FZ — current payments).


• Refuse Informal Schemes: Do not attempt to hide income on third-party cards without notifying your lawyer — discovering undeclared income can be grounds for refusal of debt discharge under cl. 4, Art. 213.28 of Law No. 127-FZ (debtor dishonesty).

5. Frequently Asked Questions (FAQ)

Conclusion and Legal Assistance

Bankruptcy proceedings require legal precision. The subsistence minimum is not a handout, but your legal right. If the financial trustee delays payments or you need to claim extra funds for rent or medical expenses through court, engage specialized attorneys.

To receive a free consultation on protecting your income during bankruptcy in Oryol and the region, fill out the contact form on our website or reach us via email.

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