What peculiarities of bankruptcy of individuals you need to know

There is a number of features in individual insolvency cases that distinguish them from those in which a company is a key player.  The Arbitration Court of the Ural District drew the attention to a number of such moments, the most curious of which are collected in our selection.

1. In a situation where it is necessary to sell the debtor's shares of a business entity, such a procedure must be established by the arbitration court that considers the insolvency cases of individuals. The rule also applies to persons who have the status of an individual entrepreneur or have already lost it. It is connected with the fact that realizable shares are not included in the property which is about to be used for entrepreneurial activities.

2. When considering a bankruptcy case of an individual who is also the head of a peasant farm enterprise, it is important to remember that it is possible to initiate one or two bankruptcy cases at once: a case on the insolvency of an individual and a peasant farm enterprise or a combination of these judicial proceeding. When making a decision on the procedure for considering such cases, circumstances related to the nature of creditors, the presence of personal obligations of an individual in the case, as well as the possibility of separating the property of an individual from the property of a peasant farm enterprise should be taken into account.

3. If there is an arrest imposed by a criminal court on the property of a bankrupt individual, the bankruptcy trustee has the right to file a petition with the bailiff or with the court of general jurisdiction to remove it. However, in case of refusal, the arbitration court has the right to suspend the proceedings on the case.

The source: Recommendations of the Scientific Advisory Council at the Arbitration Court of the Ural District.