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“Without creditor extremism: debtors will be deprived of expensive assets” — Anna Volynets for Delovoy Peterburg

The Supreme Court strengthens judicial practice on foreclosure on expensive assets of debtors. His new decision follows the trend formed since 2016, which was actually developed by the Constitutional Court. In the spring, it allowed creditors to sell the bankrupt's only but luxurious housing.

It is possible if there is no other housing

Judicial practice, which has been developing over the past few years, allows foreclosure on the debtor's expensive assets. This position was stated at the end of 2016 in the review of the Supreme Court of the Russian Federation, said Anna Volynets, project manager of "Prime Advice".

The courts recognize that it is possible to foreclose on "expensive" assets if the debtor does not have other property, the value of which is commensurate with his debt. This position follows from the important principle of the correlation of the volume of the recoverer's claims and enforcement measures enshrined in Article 4 of the Law on enforcement proceedings,

Anna Volynets explains.

For example, in one of the cases, the Odintsovo District Court of Moscow in October 2020 refused to foreclose on the debtor's land plot, since its value was about 16 times the amount of the debt. At the same time, the court found that the debtor has other immovable property that can be foreclosed on.

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