THE RIGHT TO A NEW LIFE: CONDITIONS FOR THE DEBTOR'S EXEMPTION FROM OBLIGATIONS

THE RIGHT TO A NEW LIFE: CONDITIONS FOR THE DEBTOR'S EXEMPTION FROM OBLIGATIONS

THE RIGHT TO A NEW LIFE: CONDITIONS FOR THE DEBTOR'S EXEMPTION FROM OBLIGATIONS
The manager applied to the court with a request to complete the procedure of the debtor's property sale and apply the rules on exemption from further fulfillment of obligations to creditors (case No. A75-1681/24).

The courts of two instances came to the conclusion that it is necessary to complete the procedure of the citizen's property sale and it is impossible to apply the rules on exemption from obligations to him due to the debtor's unfair behavior.

This behavior manifested itself in the failure to comply with the court's order to provide documents confirming ownership of the property, as well as bank account statements for a period of time. Additionally, the debtor's unscrupulous behavior was characterized by the intentional infliction of material damage to the creditor, as evidenced by a decision from a general jurisdiction court in another case, where it was established that the debtor had damaged the interior of the apartment, causing material harm to the creditor.

The Court of Cassation sent the case back for reconsideration in part, as the courts' conclusions that there are grounds for not applying the rules on the debtor's release from obligations in relation to the amount of the creditor's claims that are not related to property damage are premature. The failure to provide the requested documents does not in itself prove that the debtor intended to conceal property or commit other illegal acts.

It has been established that the manager carried out measures to identify the debtor's property and sent requests to registration authorities and banks, but no other property was identified that should be included in the bankruptcy estate. There is also no evidence that the debtor concealed any property or documents.

Therefore, the court's conclusions are based on incomplete facts and evidence.


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27.08.2025