Realization of housing in the bankruptcy of a citizen: problems and solutions

This article analyzes the situation in relation to the reimbursement of debt obligations by bankrupt citizens, when it becomes necessary to sell housing due to the lack of available financial resources. The author carried out analytical work on the study of regulatory approaches and established judicial practice in relation to the sale of the debtor’s only housing. Particular attention is paid to the adoption of important decisions by the highest courts of the Russian Federation in relation to the considered problem of selling housing for a bankrupt citizen. Legal approaches are also indicated and an analysis of court decisions in relation to mortgaged housing in the event of a citizen’s bankruptcy is carried out. It is concluded that cases of bankruptcy of citizens are characterized by complexity and multidimensionality, especially with regard to the need to sell the debtor’s only housing in case of insufficient financial resources to repay debt obligations. In the past few years, the highest courts of the Russian Federation have adopted a number of significant decisions that have an impact on the formation of judicial practice in relation to the only housing of the debtor. Judicial practice has developed certain approaches in the situation of extending debt obligations to mortgage housing. In addition, it is possible to use various tools to remove the debtor from the number of borrowers and to keep mortgaged housing in the ownership of family members of the citizen-debtor. But the question of determining the criteria for “luxury housing” in bankruptcy cases remains extremely difficult, which leads to the formation of various positions of the courts and, as a result, affects the satisfaction of the stated claims of creditors.