What kinds of property may not be included in the bankruptcy estate during a bankruptcy of an individual
March 22, 2019

In accordance with Art. 213.25 of the Law on Bankruptcy all property of a citizen, available on the date of the decision of the arbitral tribunal on declaring a citizen bankrupt and introducing the sale of the property of a citizen and revealed or acquired after the date of the said decision, constitutes a bankruptcy estate.

But, in accordance with the Decree of the Supreme Court of 25.12.2018 No. 48 "On some issues related to the peculiarities of the formation and distribution of the bankruptcy in bankruptcy cases", if the debtor receives payments intended for the maintenance of other persons, then such income does not get included in the bankruptcy estate.

Thus, the financial manager in the course of the procedure for selling the property of a citizen in the estate included alimony for a minor child in the amount of 50,000.00 rubles paid on a monthly basis. Disagreeing with the decision of the financial manager, the citizen, in respect of whom the bankruptcy procedure was introduced, appealed to the arbitration court considering the bankruptcy case, with a statement on the exclusion of alimony for the maintenance of a minor child from the bankruptcy estate.

The Arbitration Court upheld the arguments of the citizen and clarified in its Definition that it is impossible to include in the bankruptcy estate alimonies for minor children, child support, as well as social pensions. The Arbitration Court of Appeal upheld the ruling of the court of the first instance.


Kristina Khitrova