The armed forces: the right balance between the interests of the creditor and the debtor’s dignity

The armed forces: the right balance between the interests of the creditor and the debtor’s dignity


In its ruling, including 49 points, the Supreme court clarified the lower courts the arbitration procedural details of the implementation of the new legislation on bankruptcy of natural persons.

MOSCOW, 13 Oct. When considering cases of bankruptcy of citizens of the arbitration courts must balance the property interests of creditors and the debtor’s personal rights, including the rights to dignity, follows from the adopted Tuesday by the Plenum of the Supreme court explanations of the lower arbitration courts.

“When considering cases on bankruptcy of citizens, including individual entrepreneurs, courts must take into account the need to ensure a fair balance between the property interests of the creditors, and personal rights of the debtor (including its rights to decent life and personal dignity)”, — stated in the decree of the Plenum.

Specifically, this fact should be taken into account, for example, when examining the applications of financial Manager to grant him access to the debtor belonging to the dwelling, to the addresses and content of its electronic and regular mail, as well as motions by the debtor to obtain of bankruptcy estate funds in a reasonable amount to pay personal needs.

In its ruling, including 49 points, the armed forces explained to the courts the procedural niceties of the application of the new legislation. In particular, the Supreme court noted that banks when applying to the court with claims about bankruptcy of citizens are exempted from the obligation of prior notification of such intention, which exist during the initiation of bankruptcy of legal entities.

In cases where the residence of the debtor is not known or it is known that he is outside the Russian Federation, a bankruptcy case of such debtor is considered by the arbitration court at the last known place of residence of a citizen in Russia, according to the resolution of the Plenum of the RF armed forces.

Changes in legislation in Russia, the Institute of bankruptcy of physical persons engaged in entrepreneurship, entered into force on 1 October. According to the Central Bank, in Russia to it have the potential to resort 400-500 thousand people. The new law defines mechanisms for the settlement of a debt of the citizen as by restructuring and writing off bad debts. The law applies to all types of obligations of a citizen.