What property should be excluded from the bankruptcy estate

The Arbitration Court of the Ural District has published recommendations containing a number of issues of law enforcement in the field of insolvency law.  One of them is the exclusion of certain categories of property from the bankruptcy estate of a debtor citizen.

Among the objects that may not be included in such a list of property, there is a dwelling acquired at the expense of a targeted housing loan in a situation where the debtor is a military. Here the task of the court is to bring the issue of concluding a settlement agreement between the debtor, the credit institution and ‘Rosvoenipoteka’ for discussion of the parties.

According to its terms, the disputed premises may not be included in the bankruptcy estate, however, obligations to pay debts will not be written off from military personnel upon completion of the procedure until their full repayment.

Another object that can be excluded from the bankruptcy estate is a land plot that was provided to the debtor as a measure of social support for large families. In relation to this property, the arbitration court has the right to apply the rule on the executive immunity of the only housing if the plot was provided to the family in order to improve housing conditions, if the family has no other housing, and the construction on the land plot has already begun.

Additionally, incentive payments made for the debtor's performance of work to provide medical care to patients with coronavirus may be subject to exclusion from the bankruptcy estate. This is possible if the court considers that the remaining funds for the citizen are not enough to provide vital needs in the situation of providing assistance in the fight against COVID-19 (paragraphs 5-7 of the Recommendations of the Scientific Advisory Board of the Arbitration Court of the Ural District No. 2/2021).