Disputed car: the boundaries of affiliation in the bankruptcy of individuals

The manager of the entrepreneur appealed to the debtor's wife's mother with a demand to invalidate the registration of vehicles for her (case no. A16-182/24).

In rejecting the application, the courts of two instances proceeded from the failure to provide evidence of the actual ownership and use of the disputed property by the debtor, as well as its acquisition at the expense of the debtor's funds to the detriment of creditors' property rights.

The cassation sent the dispute for reconsideration, noting that the manager had provided evidence of the debtor's signs of insolvency and insufficient property, interest (affiliation) parties and the purpose of harming creditors.

It is emphasized that the established judicial practice proceeds from the fact that on the eve of bankruptcy, the debtor can implement various schemes to conceal property from foreclosure on it according to creditors' claims.

It was also noted that the actual use of vehicles by the debtor and his spouse, as well as the defendant's lack of the right to drive vehicles and proper evidence of the financial ability to purchase them, remained without proper assessment by the courts.

In the opinion of the instance, the courts actually limited themselves to the explanations of the defendant and a third party who are interested in the debtor, without giving the parties to the dispute the opportunity to submit credible and convincing documents confirming the acquisition of the disputed property by the defendant solely at his expense.

In addition, it was concluded that the degree of interest of the defendant in relation to the debtor, information about his income at the time of the disputed transactions, the actual use of vehicles by the debtor and his spouse were left by the courts without proper assessment.


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