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Russian Constitutional Court allows enforcement of debt judgments on bankrupt’s sole home

16/06/2021

The scope of enforcement immunity for the sole home of a debtor has been determined in a recent Ruling of the Constitutional Court of the Russian Federation. The Constitutional Court has considerably limited the immunity from enforcement on the sole residence of a bankrupt individual. Such immunity will not apply if a debtor is found to have abused his rights (e.g. by withdrawing assets from bankruptcy proceedings to secure their immunity by purchasing a “luxury” home). Judicial practice is also expected to change directions, allowing creditors to sell the debtor’s sole property when it can clearly be classified as “luxury”. However, questions remain unresolved as to the definition of criteria for “luxury” homes and the mechanisms to protect the rights of debtors in the sale of such homes.

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Authors

Portrait of
Sergey Yuryev
Igor Sokolov
Anastasia Entyakova