IF THE FATE OF THE PROPERTY IS NOT CLARIFIED, IT IS TOO EARLY TO COMPLETE THE BANKRUPTCY PROCEDURE

IF THE FATE OF THE PROPERTY IS NOT CLARIFIED, IT IS TOO EARLY TO COMPLETE THE BANKRUPTCY PROCEDURE

IF THE FATE OF THE PROPERTY IS NOT CLARIFIED, IT IS TOO EARLY TO COMPLETE THE BANKRUPTCY PROCEDURE
In the framework of the citizen's insolvency case (No. A43-35459/21), the financial manager filed an application for the completion of the bankruptcy procedure and the release of the debtor from obligations. The creditor also filed an application for the resolution of disagreements between him and the manager regarding the debtor's real estate.

The courts of two instances completed the procedure for the sale of the citizen's property and, having considered the objections to creditors, indicated that the residential premises had been removed from the debtor's property, but in any case would have been subject to exclusion from the bankruptcy estate as protected by executive immunity.

The district court did not agree with this approach and sent the dispute for a new consideration, emphasizing that the manager did not analyze the transaction, as a result of which the residential premises were disposed of from the debtor's property, it was not established in whose favor and on what basis this transaction was carried out, the reasons why the apartment was encumbered with a mortgage and the grounds for its terminations. The courts did not investigate the fate of the apartment during the consideration of the financial manager's petition, including taking into account the fact that on the date of filing the application for recognition as bankrupt, the debtor continued to be registered in the disputed residential premises, that is, retained the right to use it a year after its alienation.

14.11.2023