THE COURT DECLARED BANKRUPTCY OF A MARRIED COUPLE DUE TO THE COMMUNITY DEBT

The case on declaring bankruptcy of two individuals at once – a married couple and co-borrowers under a loan agreement concluded with a bank - was referred to the arbitration court.

As it usually happens, the husband and wife signed an agreement under which they took the money, having pledged the property they owned. At first, the debt was regularly paid, but later the payments stopped.

The bank's attempts to get the money back were unsuccessful, and the credit institution demanded that the borrowers should be declared insolvent.

At the same time, both of them were declared insolvent, as they had a community debt.

The bank asked to satisfy its claims at the expense of the pledged real estate.

Having considered the claim, the court recognized the existence of a debt, as well as a delay in its execution.

In addition, the possibility of declaring both borrowers insolvent in the same case already has a similar judicial practice, which was also noted in the decision.

A debt restructuring procedure was introduced in respect of both debtors, and the court order became the basis for a judicial review 12 AAC.