Sergei Bakeshin told DP about the changes concerning the bankruptcy of real estate developers

The bankruptcy reform in conjunction with other legislative changes may significantly affect insolvency proceedings.

For example, according to Sergei Bakeshin, Head of Dispute Resolution& Insolvency Practice at Maxima Legal, the novelties may have a negative impact on citizens involved in bankruptcy proceedings of real estate developers. “The fact is that a large number of individual creditors are usually involved in the bankruptcy proceedings of real estate developers. Their claims are included in the register of creditors’ claims by the bankruptcy trustee without going to a court. However, in case of disagreements with the trustee, citizens will now have to pay a state duty for filing an application to a court, which resolves such disputes. Filing a claim against a debtor only electronically via the “Moi Arbitr” (My Arbitrator) system may also complicate the life of citizens,” Sergeш explained specially for Delovoy Peterburg newspaper.

In addition, the expert drew attention to the fact that the number of bankruptcies of real estate developers has significantly decreased in recent years. But now the state has stopped subsidising mortgages, and the key rate is rising. In such conditions, the construction market threatens to shrink, and relatively small developers may not survive this contraction.

To read the full article (in Russian), please see Delovoy Peterburg website >>>