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Commentary of Alimirzoev & Trofimov lawyer published in “Profile” magazine

DATE: March 20, 2023 | AUTHOR: AT

The existing judicial procedure of personal bankruptcy prevents bankrupt citizens from retaining their only housing taken out as a mortgage. This calls into question the constitutional rights in the area of housing for citizens. Therefore, amendments to the bankruptcy law are being considered, the adoption of which would allow debtors to maintain their right to housing.
Yuri Semyonov, lawyer of Alimirzoev & Trofimov law firm, commented on the situation for the Russian business and analytical magazine “Profile”

Yuri Semyonov draws attention to the social orientation of the draft law: “This initiative seems socially just, as it aims to preserve mortgage housing for the most disadvantaged segments of the population”.
Notwithstanding the benefit to borrowers, however, the amendments to the bankruptcy law may lead to risks of abuse for creditors whose obligations will not be secured. As a rule, in personal bankruptcy cases, creditors receive only a few percent of the amount owed. Yuri Semyonov believes that this is primarily due to the fact that the vast majority of personal bankruptcy cases are handled in the absence of any property other than a single mortgaged housing, and if it is excluded from the bankruptcy estate, creditors may be left with nothing.
Read the full story here.

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