Mass Bankruptcies in russia: over Half a Million Citizens Declared Insolvent

Economic problems in the rf are increasingly affecting the population, as evidenced by the rapid growth in the number of personal bankruptcies. According to the results of 2025, sverdlovsk region was among the top five regions of the rf with the highest number of bankruptcy proceedings involving individuals and individual entrepreneurs.

During the year, the number of reports of judicial sales of property in the region increased by almost 28%. In absolute terms, the region surpassed st. petersburg, where more than 20,000 bankruptcies were recorded. Along with sverdlovsk region, the city of moscow, moscow region, and the krasnodar territory – the regions with a high concentration of household debt – traditionally make up the anti-rating.

This trend is associated with a decline in real incomes, rising living costs, and chronic household indebtedness. The formal “economic stability” declared by russian authorities is not reflected in the real financial situation of citizens.

At the national level, the situation is even bleaker. In 2025, the number of personal bankruptcies increased by more than 31% and reached almost 568,000 cases. This indicates the systemic nature of the crisis, which shows no signs of being overcome quickly.

Over 97% of bankruptcy cases are initiated by the debtors themselves, effectively acknowledging their own financial insolvency due to the lack of alternatives.