MOSCOW, December 2 (RAPSI) – The Volgograd Region Commercial Court has declared lawmaker representing a Just Russia party, Oleg Mikheyev, bankrupt, according to court records.

A bankruptcy claim against Mikheyev was filed by a Zarina company. The lawmaker’s debt is estimated to be 9.5 billion rubles ($143.4 million).

However, Mikheyev has only confessed his 175 million rubles ($2.6 million) debt to the company.

A law on personal bankruptcy, under which an individual can be declared bankrupt upon a creditor’s request if the total amount of debt exceeds 500.000 rubles ($7.600) took effect in Russia on October 1.

The law stipulates a three-year deferment for debtors with a stable income. Otherwise, a court will declare the borrower bankrupt and distribute the property among the creditors. Borrowers would be able to file for bankruptcy themselves.

The right to file bankruptcy lawsuits would be also given to creditors or authorized agencies, in which case borrowers would be able to say that they cannot honor their obligations irrespective of the debt amount.

The law reaches car, mortgage, and consumer credits. The legislation also touches foreign currency loans.

According to experts, about 500.000 Russian citizens are expected to initiate bankruptcy proceedings.