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«The Supreme court allowed to withdraw the only housing from the bankrupt» — Tatiana Tereshchenko for the Legal Information Agency

The only housing can be withdrawn for debts from the bankrupts. This decision was made by the Supreme court of Russia.

According to the current Civil procedure code of the Russian Federation, the penalty can not be applied to the housing, which is the only suitable for permanent residence of the debtor and his family. The exception applies only to apartments and houses purchased on mortgage.

Tatiana Tereshchenko, head of analytical department of "Prime Advice":

There is nothing extraordinary in the position of the Supreme court of Russia. The impossibility of withdrawal of the only housing established by the current law is a socially significant guarantee that puts the housing interests of the debtor above the interests of any creditor. This is due to the right of everyone to housing enshrined in the Russian Constitution.

However, guarantees should not be abused. The Civil code of the Russian Federation prohibits to take any advantages of its unfair behavior. Therefore, having assessed all the circumstances of the case, the court has the right to conclude that the debtor deliberately disposed of his property in order to formally leave only one habitable apartment or other property. The consequence of the identification of such circumstances may include the deprivation of the debtor's so-called property immunity in foreclosure.

In addition, in the case considered by the highest instance we are talking about a fairly large apartment (five rooms, total area of 198 square meters). It is not excluded that due to its sale possible not only to repay debts but to purchase another dwelling. Most likely, when assessing the debtor's bad faith, the Supreme court of Russia proceeded from the idea of the need to "book" premises from recovery only to meet reasonable housing needs.

In general, legislators consistently pursue the idea of depriving any preferences of persons who behave unfairly and unwisely. For example, according to the bankruptcy law, a citizen who acted illegally, including fraud, maliciously evaded repayment of accounts payable or payment of taxes, provided the creditor with knowingly false information when receiving a loan, concealed or intentionally destroyed property cannot be released from obligations.

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