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We know everything about bankruptcy
05/12/2025
Friday
THIS DAY IN HISTORY:
5 December 
1936 The Stalinist Constitution of the USSR was adopted.
1936 the Stalinist constitution of the USSR was adopted.
1484 Pope Innocent VII initiated the "witch hunt".
1456 An earthquake that destroyed Naples occurred - 35 thousand people died.
1456 occurred an earthquake that destroyed Naples - 35 thousand people died.
5 December
1936 The Stalinist Constitution of the USSR was adopted.
1936 the Stalinist constitution of the USSR was adopted.
1484 Pope Innocent VII initiated the "witch hunt".
1456 An earthquake that destroyed Naples occurred - 35 thousand people died.
1456 occurred an earthquake that destroyed Naples - 35 thousand people died.
On the need to live where you work: the reasonableness of the debtor's housing expenses
The debtor filed a claim with the court to exclude funds from the bankruptcy estate to pay for the rent of residential premises (case No. A12-957/25).
Courts at both levels rejected the petition, citing a lack of evidence justifying the exclusion of funds for monthly rent from the bankruptcy estate, given the debtor's bankruptcy proceedings and the need to balance the property interests of creditors and the debtor's personal rights.
The cassation court remanded the dispute for a new trial and noted that the court determines the debtor's need for property on a case-by-case basis, taking into account the circumstances of the dispute.
In this case, it is established and follows from the case materials that the debtor resides in one city and works for an organization in another. The debtor's need to rent residential premises is due to the lack of his own housing, as confirmed by notification from a government agency.
In filing a motion to exclude the relevant amount from the bankruptcy estate, the debtor submitted a residential lease agreement, receipts for rent payments, documents confirming rental expenses, an electronic copy of the work record book, and an income certificate indicating that the debtor had been employed for a certain period by an organization in another city.
The debtor also drew the court's attention to the reasonableness of the rent, the impossibility of residing at the permanent address, and the reasons for not having temporary registration at the rental address, with supporting documents submitted, all of which were not examined or assessed by the court. The courts did not establish the circumstances of the debtor's actual residence at a different address (under different conditions).
The courts' conclusion that the debtor has the ability to reside at their permanent registration address cannot be considered justified, given that such registration was made in one region, despite the debtor working for an organization in another city, significantly distant from their permanent registration address. This was not taken into account by the courts when issuing the contested judgments. The argument that funds from employment in another city are not transferred to the bankruptcy estate for the purposes of considering the petition is unfounded. The manager, in order to fulfill their duties, has the right to request the necessary information from both the employer and the debtor.
Photo: Freepik
Courts at both levels rejected the petition, citing a lack of evidence justifying the exclusion of funds for monthly rent from the bankruptcy estate, given the debtor's bankruptcy proceedings and the need to balance the property interests of creditors and the debtor's personal rights.
The cassation court remanded the dispute for a new trial and noted that the court determines the debtor's need for property on a case-by-case basis, taking into account the circumstances of the dispute.
In this case, it is established and follows from the case materials that the debtor resides in one city and works for an organization in another. The debtor's need to rent residential premises is due to the lack of his own housing, as confirmed by notification from a government agency.
In filing a motion to exclude the relevant amount from the bankruptcy estate, the debtor submitted a residential lease agreement, receipts for rent payments, documents confirming rental expenses, an electronic copy of the work record book, and an income certificate indicating that the debtor had been employed for a certain period by an organization in another city.
The debtor also drew the court's attention to the reasonableness of the rent, the impossibility of residing at the permanent address, and the reasons for not having temporary registration at the rental address, with supporting documents submitted, all of which were not examined or assessed by the court. The courts did not establish the circumstances of the debtor's actual residence at a different address (under different conditions).
The courts' conclusion that the debtor has the ability to reside at their permanent registration address cannot be considered justified, given that such registration was made in one region, despite the debtor working for an organization in another city, significantly distant from their permanent registration address. This was not taken into account by the courts when issuing the contested judgments. The argument that funds from employment in another city are not transferred to the bankruptcy estate for the purposes of considering the petition is unfounded. The manager, in order to fulfill their duties, has the right to request the necessary information from both the employer and the debtor.
Photo: Freepik
20.11.2025
