Sergei Bakeshin told the DP about the conditions formulated by the Russian Constitutional Court for exchanging a debtor’s luxury housing for reasonably sufficient one

According to Fedresource (Unified federal register of legally significant information on the activities of legal entities, individual entrepreneurs and other subjects of economic activity), about 40.5 thousand people were declared bankrupt in Russia in the first quarter of this year, which is 81.5% more than in the same period of 2020. At the same time, at the end of April 2021, the Constitutional Court of the Russian Federation again pointed out the need to amend the legislative provision on immunity of the only housing of an insolvent citizen and gave creditors an opportunity to apply to the court with a proposal to replace the debtor’s “luxury” housing with “reasonably sufficient” one.

Sergei Bakeshin, Head of Dispute Resolution and Insolvency Practice at Maxima Legal, has explained to Delovoy Peterburg newspaper that “it shall be located in the same settlement and its area shall comply with provisions of the social rent agreement for the debtor and family members living with him but subject to market value. The state has not yet been obliged to provide replacement housing and is unlikely to be obliged to do so.

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