In Tatarstan, the procedure for selling a person's only home during bankruptcy may change
According to the draft federal law «On Amendments to the Federal Law «On Insolvency (Bankruptcy) », a new mechanism for the sale of debtors' only residences during bankruptcy proceedings is planned.
The draft law allows for the sale of a debtor's only residence, provided that its characteristics «clearly exceed those reasonably sufficient to meet the debtor's housing needs». The following will be taken into account when assessing such residences:
- - living space
- - location
- - structural features
- - level of finish and decoration
- - level of infrastructure
- - technical equipment
The sale of «excess» residences is only possible if replacement housing is purchased for the debtor. This replacement housing must be located in the same locality (and district), comply with housing legislation, ensure the debtor and their family maintain a decent lifestyle, and take into account the debtor's place of study, work, and special needs of family members.
The debtor will have the right to participate in the selection of replacement housing, and the financial manager will not be able to terminate the debtor's ownership of the old residence until the new one is acquired.
If the sale of the property through a public offering fails to achieve a price sufficient to purchase a replacement home and substantially pay off the debt, the debtor will retain the property.
These changes are aimed at establishing a fair balance between the interests of creditors and maintaining decent housing conditions for debtors in financial distress.