THE ONLY HOUSING OF DEBTOR WAS FIRST SOLD AT AUCTION

As a part of the insolvency case of an individual, an argument arose about the fate of his two-level five-bedroom apartment. The debtor insisted at the exclusion of it from the bankruptcy estate, referring to the fact that it was the only housing. The lenders, in turn, pointed to the luxuriousness of the apartment and demanded its implementation. The result of a long-term dispute was the sale of real estate and the acquisition of much more modest housing for the debtor.

The history of the apartment began three years ago, after the initiation of an insolvency case. Then the applicant first asked the court to exclude real estate from the bankruptcy estate with reference to the fact that it was his only housing. The court first satisfied the claim, but the cassation instance sent an application for a new consideration.

Then the creditors voted for the replacement of a five-room apartment with a one-room housing, and the courts supported them during the re-consideration of the case.

After that, the debtor applied to the court with the requirement to exclude an apartment from the bankruptcy estate for the second time, but he received only the definition of termination of production with reference to the fact that this issue had already been solved earlier. As a result, the real estate was sold at auction.

Probably the fate of this case may have a direct impact on a variety of similar situations. Now the debtors, demanding an exception of their only but luxurious housing from the bankruptcy estate, may face the refusal and replacement of their expensive apartment with very modest, but suitable housing.

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