Arbitration court clarified when it is necessary to pay off a bankrupt’s rental debt

The Arbitration Court of the Ural District explained that if the debtor's expenses for commercial rental of housing are recognized by the bankruptcy trustee or by the court as reasonable, they are subject to repayment within the framework of the current payments.  To do this, it is necessary to take into account the need for rent, the area of   the premises, the cost of living and a number of other criteria.

In a situation where the bankrupt does not have enough money to pay off all the debts, and in connection with this there is a risk of terminating the contract, the court has the right to deviate from the established order of priority for repaying claims.

This is done in order to satisfy the constitutionally significant right of a citizen to housing, as a necessary consequence of life support.

In such a situation, the order of priority for satisfying creditors' claims can be changed by a court decision, and the lease payments can be repaid in priority in relation to the obligations of the first and the second priority.

Thus, it is permissible to change the order of repayment of claims in favor of paying funds for commercial rent in a judicial proceeding, even to the detriment of other financial obligations of the debtor.

Source: paragraph 8 of the recommendations of the Scientific Advisory Council at the Arbitration Court of the Ural District.