Debt restructuring for housing and communal services: procedure, sample applications, agreements and contracts

What does debt for utilities lead to?

The main regulatory document regulating the legal relations between citizens and management companies is the Housing Code of the Russian Federation. An entire section (VII) is devoted to the issue of payment for residential premises and utilities, which states that the obligation to pay payment arises for the following categories of citizens:

employers under a social tenancy agreement;
tenants of state or municipal housing stock;
members of a housing cooperative;
home owners;
developers or persons who accepted the premises under the transfer deed.

According to Art. 155, payment is due by the 10th day of the month following the billing month: for January - before February 10, for February - before March 10, and so on. It also provides that in case of late/incomplete payment for services, owners and tenants are required to pay the management company (MC) a penalty in the amount of 1/300 of the refinancing rate of the Central Bank of the Russian Federation for each day of delay, starting from 31 days. This leads to an increase in the amount of debt and even collection of it in court.

If there is a debt of 500,000 rubles or more, the company has the right to demand foreclosure on the debtor’s property: a car, an apartment, etc.

What does debt restructuring mean for citizens?

The concept of restructuring is enshrined in Art. 105. It implies an agreement-based change of debt obligations to other terms and payment terms, as well as the possibility of their partial write-off.

This agreement establishes more acceptable terms for the payer, giving him the opportunity to pay off his bills in full with:

reduction of monthly payments when the payment term increases;
writing off part of the debt that arose for a good reason;
providing temporary holidays on payment of bills with mandatory repayment of current accruals.

For management companies, it is important to regularly pay for the services consumed, which is stipulated in the concluded contracts. If payment deadlines are not met, a debt arises. It entails negative consequences not only for citizens, but also for the resource supplying organization, because a balanced budget and high-quality provision of services are possible only with proper payment of bills.

So, restructuring the utility debt is beneficial to both parties. The contract will allow the potential consumer to settle payments in stages, without accruing penalties, and the management company will save time and money on legal proceedings, working with bailiffs and collecting payments under enforcement documents.

The reasons for the debt and the amount may vary, but the most common are:

dissatisfaction with the quality of services provided and the belief that tariffs are greatly inflated;
deterioration in the financial situation of a family or a citizen living alone;
personal reasons: illness, living in a remote area, etc.

In this regard, when establishing the terms for repayment of rent payments, an individual approach to each tenant is practiced: family composition, employment and average monthly income are taken into account. This allows you to choose an installment plan that will allow you to make current payments on time and repay the debt.

Benefits from debt restructuring

Debt restructuring benefits both parties. For utility workers, this is an opportunity to receive their money, albeit in parts, later than the deadline.

The consumer benefits are as follows:

the amount does not have to be found in full immediately, since the money is paid gradually and in parts;
the debtor eliminates the risk of accrual of penalties and penalties, since the utility company voluntarily provides a deferment;
the owner of the property is protected by the terms of the contract signed by the parties.

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By agreeing on a restructuring, the consumer has the opportunity to continue making current payments without further increasing the amount of debt.

The legislative framework

Since the collection of utility bills almost always occurs in an indisputable manner, home owners and tenants need to know what laws govern the calculation and procedure for paying utility bills.

Having studied the relevant regulatory documents, it is easy to figure out in which cases the conclusion of a restructuring agreement is beneficial to the payer, and in which it is not.

Since the contract is the main regulator in any area of relations, including housing, the main legal act regulating obligations and the procedure for their fulfillment is (Articles 420-453).

The issues of providing utility services and their payment are discussed in more detail in Section VII of the Housing Code of the Russian Federation.

The relationship between providers and consumers of utility services, the procedure for quality control and determining the amount of payment is regulated.

Controversial relations between consumers of utility services and management companies, as well as resource supplying organizations, are regulated. An example is the illegal shutdown of electricity or other housing and communal services.

Who can apply for debt restructuring

Revision of the terms of the contract for the provision of utility services or settlements is possible only under certain circumstances. The main reason is the financial situation, which does not allow timely payments for gas, water and heat supply. It is for this reason that most consumers are interested in whether it is possible to pay off the debt for light in installments.

The owner or tenant of an apartment has the right to initiate the conclusion of an installment agreement if the following circumstances arise:

long-term illness or disability;
loss of a breadwinner and lack of sources of income for other residents;
job loss and long-term inability to find work;
maternity leave or family problems;
a large number of loans and the inability to pay them.

All circumstances require documentary confirmation. Evidence may include income certificates, work records, birth/death certificates, extracts from an outpatient card and other documents.

What is restructuring?

Restructuring is, first of all, a rehabilitation procedure. Its goal is to restore the debtor’s solvency and proportionately satisfy the creditor’s claims.

Restructuring is not aimed at writing off debt, but at returning it. In fact, it is the opposite of bankruptcy

Conditions for restructuring housing and communal services debts

Although the payment schedule under the restructuring agreement is drawn up taking into account the capabilities of a particular debtor, management companies try to comply with the principle specified in Art. 138. According to this article, monthly deductions from wages should not exceed 20% of the amount remaining after taxes. Under these conditions, the consumer will be able to easily repay debt and pay current bills.

There are often cases when, when concluding an agreement to revise payments, the previously accrued penalty is written off:

taking into account the proportionality of the principal debt and the penalty, established by Art. 333 Civil Code of the Russian Federation;
when applying the limitation period, according to Art. 196 of the said act.

As a rule, when determining the conditions for debt restructuring, management companies take into account the following circumstances:

the period of non-fulfillment of obligations;
dishonesty of consumer actions;
ratio of the amount of debt and penalty;
the financial ability of the debtor to pay the amounts under the contract and current payments.

It is worth noting that restructuring the debt for housing and communal services for a dysfunctional family is impossible, because in an atmosphere of conflicts, parasitism, abuse of alcohol and drugs, or addiction to gambling, compliance with any agreements is doubtful.

In this case, the debt is collected in court. Consideration of claims for the collection of debts on utility bills up to 500,000 rubles takes place by order, without calling the parties, in accordance with Ch. eleven .

In this regard, before submitting an application for concluding an agreement, it is worth checking the information on the collection of the amount provided by the official website in the Russian Federation. If enforcement proceedings have not been initiated, you can contact the resource supply organization and apply for an installment plan.

Restructuring of Ukrainian gas debts: pros and cons

This is approximately the same as if you, for example, borrowed 100 UAH from your neighbors or colleagues, and returned it after a few years, and even in parts. The difference is that your creditors, if they are wealthy enough or altruistic, may not charge you interest, nor require any form of guarantee of repayment of your debt (i.e., its security). But there are fewer and fewer altruists. And in international practice - in relations between two or more states - this would be nonsense today. OJSC Gazprom - NJSC Naftogaz of Ukraine

I would now like to tell you in detail how the restructuring of the corporate debt of NJSC Naftogaz of Ukraine to the Russian Gazprom will turn out for Ukrainians and residents of Ukraine. But, alas, this is not yet possible - a specific document of this kind between NAC and Gazprom, as far as we know, has not yet been signed. And even the procedure for issuing the promised Eurobonds by Naftogaz of Ukraine has not yet been fully developed. There is only what is called an intergovernmental agreement on the restructuring of NAC’s “gas” debts, signed on October 4 during negotiations in Kyiv by Ukrainian Prime Minister Anatoly Kinakh and the head of the Russian government, Mikhail Kasyanov.

However, it is more logical to consider any document of this kind not as an intergovernmental and especially not an interstate, but simply as an international treaty, like all others. Because modern Ukrainian legislation does not provide for other formulations in such cases. Nevertheless, the Cabinet of Ministers of Ukraine intends to send the Ukrainian-Russian intergovernmental agreement on the restructuring of the “Ukrainian” debt for previously supplied Russian gas to the Verkhovna Rada for ratification.

And not only does the Prime Minister of Ukraine A. Kinakh express his hopes that the country’s parliament “will ratify this document in the near future.” He is also counting on the so-called package ratification - together with other intergovernmental agreements - on guarantees for the transit of Russian gas through Ukrainian territory and on the conditions for reserve supplies and payment for Russian gas.

The essence of the first of these agreements expresses Russian Gazprom’s fears of unauthorized withdrawals of its transit export gas by Ukraine. To prevent this from happening, the Russians proposed signing such an agreement. And besides, the second one is about reserve gas supplies to Ukraine (5 billion cubic meters in 2001). But in the case of using “reserve” gas from the Ukrainian “undergrounds”, the Ukrainian side must pay 80 dollars for every thousand cubic meters of such gas (for the transit of its gas through the territory of Ukraine, Gazprom, also traditionally, “pays” in gas at the rate of 50 dollars per 1000 cubic meters). These agreements also contain a traditional mention that Ukraine undertakes not to export gas. After all of the above, it is logical to ask: what does parliament have to do with it? And what is the need for him to ratify these “intergovernmental agreements”! In addition, the document on restructuring the debt for Russian gas must be signed (and implemented) by business entities of two states - NJSC Naftogaz of Ukraine and OJSC Gazprom. So what does the ratification of the agreement by the Ukrainian Parliament have to do with it?

Very reluctantly and very unofficially, the correspondent received the following explanation: they say that the agreement on the restructuring of NAC’s corporate debt, among other things, contains “certain obligations of the Ukrainian state.” Among these “certain”, it may be necessary to include the fact that although the debt for gas to OJSC Gazprom was recognized as corporate (i.e., $1,401.4 million of the debt was “hung” on NJSC), it is still In the event of “financial incapacity” of Naftogaz of Ukraine (100% of which is still owned by the state), the entire amount and interest will have to be paid from the state budget of Ukraine. Perhaps - But even before this “happy” moment, NAC’s debt must be converted into Eurobonds, which, according to Deputy State Secretary of the Ministry of Finance V. Lisovenko, will become the object of trading on the securities market. Currently on the European market. I note that the Russians were precisely trying to obtain such “universal” securities from NAC.

To the question: can such securities subsequently be offered (exchanged) for shares of Ukrainian enterprises put up for auction, the answer was approximately as follows: “But in this case, the question will be that the State Property Fund of Ukraine should pay for corporate debts with state shares -” In other words, the state of Ukraine. And if this is so, then here is an answer to the question of why ratification of intergovernmental agreements was needed, in particular the agreement on the restructuring of NAC’s “gas” debts. But all the same: why did the Russians need “universal” securities... Which, by the way, NJSC Naftogaz of Ukraine intends to issue at the beginning of 2002. The previous restructuring of the Ukrainian government debt for Russian gas provoked the emergence of so-called “Gazprom deals”. Throughout this period, other media informed subscribers in sufficient detail about them, their circulation and repayment. If I'm not mistaken, the Ministry of Finance dealt with this task in a timely manner. The same cannot be said about relations with Ukraine’s restructured public debt to Turkmenistan.

Ukraine — Turkmenistan

Having signed an interstate (intergovernmental) protocol with Turkmenistan in 1994, Ukraine actually recognized the debts of all companies working in this field as state-owned. The amount of debt was over $700 million. Turkmenistan then kindly agreed to restructure Ukrainian debts. And the Ukrainian Ministry of Finance, again, quite accurately paid both the interest and the very amount of the debt for the previously supplied Turkmen gas. And everything would have been fine if more than a year ago Ukraine, being on the verge of declaring a default, had not refused to pay the agreed amounts of debt to Turkmenistan. Refused in January 2000. Probably forced. Since around the same period, Ukraine also refused to pay its debts to the Paris Club of creditors, seeking debt restructuring. In 2000, Ukraine restructured its external commercial debt in the amount of $2.7 billion. So, by the beginning of this year, its total debt to foreign creditors was just over $10.3 billion. Since the spring of this year, Ukraine has been lobbying the Paris Club and Turkmenistan (which is not a member of this club) to restructure its debt in the amount of $1.007 billion. This did not make it any easier for Turkmenistan. And it is even more surprising that after almost two years of non-supplies of Turkmen gas, in 2001 the “gas” contract was signed again. Moreover, on conditions quite acceptable for Ukraine. 30 billion cubic meters of Turkmen gas at a price of $40 per 1000 cubic meters; calculation 50x50. That is, Ukraine (or rather NAC) must pay 50% of the cost of gas supplies of Turkmen gas in foreign currency, and the other half - in supplies of goods. As far as is known, NAC did not have any particular problems with the “currency part” of payment for Turkmen gas supplies. But with the “commodity”... Our fellow citizens know how and strive to “sell” to Asians whatever they can get their hands on. But the “Asians” also became more skilled during their “cooperation” with Ukraine. They know the specifications and prices of manufacturers no worse than we do... Therefore (or also because) the “commodity” part of the payment did not work out very well for the Ukrainians. Yes, plus the Eastern mentality - the devil will break his leg... Further - more (in the sense - worse). Ukraine (its representatives) continued to negotiate with Turkmenistan about another deferment of the payment of gas debts. It seemed that Ukraine said (this was also reported) that after the Paris Club of creditors extended loans to Ukraine and “cut down” the payment of interest and the loan itself, Turkmenistan would agree to restructure the Ukrainian “gas” debt for the second time (or at least extend the previous protocol). But... it didn't happen. Turkmenistan rejected Ukrainian proposals. Very diplomatically, but with the same degree of categoricalness. May Turkmenbashi forgive me, I would formulate it this way: “Money for a barrel” (or a turban, or something else). Turkmenistan says that Ukraine’s agreement with the Paris Club is, in principle, a good thing. But what do they have to do with it? They have their own scores to settle, and theirs to settle with them. They are not at all satisfied with the deadline for restructuring the Ukrainian debt by the Paris Club, much less the interest rate. At least, as far as we have been able to find out, the Turkmens have so far rejected most of the proposals from the Ukrainian side. The Ministry of Finance, the Ministry of Fuel and Energy of Ukraine and NAC express cautious hope that the process of agreeing on the terms of restructuring the Ukrainian “gas” debt to Turkmenistan will continue. And it continues. The question is what concessions can both contracting parties make? What will the compromise consist of? After all, without it, obviously, there can be no talk of any restructuring of Ukrainian debts by Turkmenistan. In addition, Turkmenistan is already meeting Ukraine halfway, agreeing that NJSC Naftogaz of Ukraine can “pay” for half the cost of the gas it supplies in goods. And although NAC, as already mentioned, has not been very successful in this so far, Turkmen gas is still supplied to Ukraine. Officials of the ministries and state committees involved in this topic say: if a second restructuring of the Ukrainian gas debt happens, it will most likely happen in 2002. Well, we'll wait and find out.

The procedure for drawing up an agreement to revise the terms of debt payment

It is advisable to clarify all the details of how to properly restructure the housing and communal services debt with the management company or resource supplying organization. But in most cases, after considering the application and making a decision on installment payments, the tenant is offered to enter into an agreement containing a new payment schedule, installment period and payment method.

Documents for obtaining installments

The main document for making a decision on debt restructuring is a statement, to which should be attached:

identification;
certificate of family composition;
a certificate of the amount of debt or readings of measuring instruments;
document on official employment or work book confirming dismissal;
family income certificate;
in case of illness - a certificate of the need for treatment;
confirmation of the right to reside in a residential premises: rental agreement, social lease or certificate of ownership.

Typically, all documents, except certificates of family composition, income and employment, are provided in the form of copies.

Application for concluding an installment agreement

There is no established application form for applying to the management company with a request for installment payment of the debt amount. But any written appeal must comply with the requirements of Art. 7 and contain the following data:

name of company;
Full name, address and telephone number of the applicant;
reason for contacting and a brief description of the situation;
proposal of terms and conditions for installment plans;
signature and date of the application.

The specified documents are attached to the application, after which it remains to wait for the decision of the Criminal Code and the invitation to sign the contract.

Debt restructuring agreement

If both parties are satisfied with the terms of the installment plan, they sign an agreement that contains:

details of the company and the debtor;
detailed information about the occurrence of debt, amounts written off and planned repayment of the balance;
new payment schedule;
liability of the parties in case of violation of obligations under the contract;
duration of the agreement.

The main obligation of the resource supplying organization is to provide utilities in full, and the tenant’s is to timely pay current payments.

The document is drawn up in two copies having equal legal force. One is received by the debtor, the other by the service provider. From the moment the contract is concluded, the debt is no longer such and the accrual of penalties for the specified amount ceases.

When is debt restructuring introduced in bankruptcy?

The debt restructuring procedure begins with the consideration of a citizen’s application to be declared bankrupt. When considering the debtor’s application, the arbitration court may make the following decisions:

declaring the application unfounded if there are compelling reasons;
recognize the application as justified, which will entail the introduction of a debt restructuring procedure. However, it must be borne in mind that the introduction of this procedure does not necessarily mean the drawing up and approval of a restructuring plan, and, accordingly, its implementation

Russian legislation imposes a number of requirements

for individuals who may enter into a debt restructuring procedure. These requirements include:

the debtor must have official income (at the time of filing an application to the arbitration court to declare him insolvent), at the expense of which debts to creditors will be repaid;
the debtor has no criminal record for crimes in the economic sphere;
expiration of administrative punishment for certain types of offenses (if any). These include: fictitious bankruptcy, petty theft, etc.;
absence of the fact that the debtor was declared bankrupt 5 years before the debt restructuring procedure.

If a citizen does not meet the listed requirements, the arbitration court makes a decision to introduce the next stage of the bankruptcy procedure - the sale of the debtor’s property.

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Positive aspects of debt restructuring

The main advantage of concluding an installment agreement is the opportunity, even if there is debt, to apply for benefits or a subsidy to pay for housing and communal services. This rule is established in Art. 160 of the Housing Code of the Russian Federation and states that compensation for expenses for payment of residential premises and utilities is provided in the absence of debts or the conclusion and implementation of agreements for its repayment.

Other benefits of restructuring include:

uninterrupted provision of energy supply, heat supply and other services;
settlement of the dispute peacefully;
the ability to minimize the amount of debt and write off penalties.

The agreement also has negative sides: confirmation of the amount of debt and the inability to challenge it, as well as an extension of the statute of limitations.