THE SUPREME COURT OF RUSSIA SUMMED UP THE RESULTS OF IMPOSITION OF MORATORIUM ON BANKRUPTCY

The moratorium on bankruptcy, which was introduced in the spring of 2020, provoked many questions in law enforcement activity. This led to a kind of summing up the results of its imposition in the form of a new resolution of the Plenum of the Supreme Court of Russia, which consolidated a number of important theses.

Some of them are here in our selection.

1.       The law allows a debtor included in the list of companies subject to the moratorium to be declared bankrupt in a situation where this debtor is already in the process of liquidation by his (her) own decision.

2.       During the period of the moratorium, the enforcement proceedings shall be suspended. Exceptions are certain actions (arrest, prohibition to dispose of property). In addition, it is impossible to suspend enforcement proceedings on the payment of alimony, wages or benefits, as well as compensation for harm caused to life or health.

3.       When initiating his (her) own bankruptcy, the debtor has the right to declare an installment plan during the period of the moratorium against him (her). In such a situation, the case can be initiated after the expiry of the moratorium.

At the same time, the consent of creditors for the provision of installments is not required.

4.       The prohibition on challenging a number of transactions made in the ordinary course of business of the debtor provides for the presumption of innocence of the latter. Until otherwise is unproven, it is assumed that all transactions entered into during the disputed period were concluded in the ordinary course of business. Recognition of a transaction as invalid is possible, in particular, in a situation where the counterparty to the transaction had information about the debtor's insolvency.

The resolution of the Plenum of the Supreme Court of Russia of December 24, 2020 No. 44.