District Court allowed an installment payment on amicable agreement in bankruptcy

The Arbitration Court of the Ural District considered the complaint of the debtor, whose claim for man installment plan under an amicable agreement was rejected.  At the same time, the applicant referred to the objective circumstances of the impossibility of fulfilling the conditions previously agreed by the parties, but the judicial board was adamant.

We are talking about the bankruptcy of an individual who, as part of the procedure, entered into an amicable agreement with his creditors. However, subsequently, due to the protracted procedure for the sale of the debtor's property, the latter was unable to comply with the schedule of payments approved in the agreement. Then he applied to the court, pointing out the need for an installment plan. At this time, several creditors also submitted applications, but to terminate the settlement agreement due to non-fulfillment of its terms.

The court of first instance was on the side of the debtor and provided an installment plan for the execution of the agreement.

However, the appeal cancelled this decision with reference to the fact that the court had no right to make adjustments to the amicable agreement concluded between the parties.

The judicial board of the District Court reminded its colleagues that the creditor, who owns more than 25% of the total amount of debts under the transaction, has the right to challenge and terminate the amicable agreement. The applicant in the present case owned a smaller share, which deprived him of the right to challenge it.

Moreover, the conclusion of the lower instance that the court had no right to change the terms of the amicable agreement was also erroneous.

As a result, the ruling of the court of first instance was upheld, and the ruling of the court of appeal was canceled (decision No. F09-7441 / 17 of September 6, 2021 in case № A60-4409 / 2016).