THERE IS NOTHING UNFAIR ABOUT INVESTING IN FINANCIAL PYRAMID SCHEMES

THERE IS NOTHING UNFAIR ABOUT INVESTING IN FINANCIAL PYRAMID SCHEMES

THERE IS NOTHING UNFAIR ABOUT INVESTING IN FINANCIAL PYRAMID SCHEMES
The manager appealed to the court with an application for the completion of the procedure for the sale of property and the release of the debtor from obligations (case No. A05-7729/22).

Refusing to release the citizen from obligations, the courts of two instances proceeded from the fact that when issuing a loan, the debtor informed the bank knowingly false information about his income.

The debtor took out a loan not for personal urgent needs, not under the influence of fraudsters, but for investing in financial instruments, following the example of his acquaintances and acquaintances who allegedly had significant income from such investments, that is, she took money to perform high-risk financial transactions. In such a situation, reporting unreliable income information to the Bank in order to obtain a large loan amount cannot be justified, and debt relief would mean encouraging unfair actions by the court, shifting the debtor's losses from voluntarily assumed risks to the creditor.

The cassation of judicial acts canceled and released the debtor from obligations, guided by the fact that the circumstances of the case do not indicate an obvious and obvious deviation of the actions of the debtor as a participant in civil turnover from good faith behavior, any evidence of the presence of circumstances provided for by law in which the debtor cannot be released from fulfilling obligations, including the presence in his actions there are no signs of malicious evasion from repayment of accounts payable or knowingly providing false information, while the bank has not substantiated the opposite, and the courts have not established it.

The debtor's lack of property at the expense of which the creditor's claims can be repaid, as well as the debtor's debt in connection with the obligations assumed, cannot in themselves indicate unfair behavior of the debtor.

According to the debtor's explanations, the indication in the application form for a consumer loan of monthly income in an inflated amount compared to official income was due to the estimated income from investing in an investment company.

The courts have not established that the termination of the fulfillment of obligations under the loan agreement was due to unfair behavior of the debtor or evasion of the debtor from fulfilling obligations.

05.07.2024