If a citizen is declared bankrupt by decision of the Arbitration Court, all of his property is subject to sale. The sale of property of debtors is a mandatory procedure, the purpose of which is the proportional satisfaction of the claims of creditors. What are its features and implementation?
Grounds for the sale of property
According to the bankruptcy law, the sale of property of debtors is possible only after debt restructuring. During restructuring, a plan for its redemption is developed and approved. The debtor at this stage may be limited in his actions, and his property is not yet under arrest. If the restructuring has not helped to pay off all obligations to creditors, the sale of property of debtors begins.
The sale of property is initiated only in court in two cases:
- At the initiative of debtors (the decision is approved after the bankruptcy petition is recognized as fully justified).
- At the initiative of the financial manager (if no proposal has been received within the prescribed period on a plan for paying off obligations to creditors).
Judicial Decision Making
The recognition of an individual as bankrupt and the further procedure for the sale of his property in court are possible if:
- bankruptcy managers, the debtor or authorized organizations were not able to develop and approve a restructuring plan;
- restructuring plan is not recognized by the meeting of creditors;
- the court unilaterally canceled the execution of the restructuring plan;
- the points of a settlement are violated;
- after the end of the debt restructuring procedure, the bankruptcy case resumed.
The sale of property of debtors after they receive bankruptcy status is carried out under the supervision of a financial manager. No seizure of property. However, a citizen is limited in the right to dispose of property. All operations can be carried out only under the supervision of a financial manager.
What is to be implemented
From the moment a natural person is declared bankrupt, all of his property is subject to sale to pay off the debt. The list of property items that cannot be realized is determined in article 446 of the Civil Code. It includes:
- debtor's housing, if it is the only suitable for his residence;
- the plot of land is the only one suitable for living;
- items of personal use, excluding jewelry and luxury;
- equipment or tools necessary to carry out the work;
- cattle, feed, animal pavilions, if they are in personal use;
- products
- fuel;
- awards and prizes.
Sale of property of debtors is impossible at a cost of less than 10 thousand rubles. Everything that costs more is put up for auction.
Powers of the financial manager
The financial manager completely disposes of the property of the bankrupt. Under his leadership, all operations are carried out, including the sale of property of debtors at auction. Transactions that are personally conducted by a bankrupt are void.
The manager can:
- to manage the money of the defaulter on his bank accounts;
- conduct operations on these accounts;
- to fulfill the legal rights of the defaulter;
- attend and accompany trials (this also includes the arrest and sale of property of the debtor).
The procedure for the sale of property of the debtor
The process of selling a bankrupt property includes four stages.
- Inventory and valuation of property. Everything subject to arrest and sale at auction is seized. Revealed objects that can not be implemented.
- Under the supervision of the financial manager, a provision is submitted to the court on the sale of property with the approved terms of sale and value.
- Sale of property at auction. As a rule, the process lasts 6 months, but this period can be increased by court order. Property that is transferred to creditors to pay off debt must also be sold during this period. Property items that cost more than 100 thousand rubles are sold at public auction. If the financial manager fails to sell the property, they will be returned to the debtor with the preparation of the deed of transfer.
- Funds received from the sale of property are transferred to creditors. If they are not enough to fully repay the debt, the non-payer is no longer obligated to pay them, since he is declared bankrupt.
Evaluation work
Valuation of property of the debtor is the most important stage in the enforcement proceedings. The effectiveness of enforcement measures depends on its outcome. Bankrupt is interested in high valuations of property, and lenders - in real.
Assessment of non-payer property in accordance with Section 85 of the Law on Enforcement Proceedings is carried out by bailiffs in accordance with current market prices. Bailiffs, as a rule, involve appraisers in this, since debtors and collectors often disagree with the results of the procedure. The party that disputes the results of the work pays the full cost of the services of the appraiser.
Valuation of securities is made by request of the bailiffs to the organizers of tenders in the relevant market. The price of units in investment funds is determined by requesting value to the managing organization.
Bidding for the sale of property of debtors and the procedure for their conduct
After conducting appraisal work, the sale of the debtor's property at open tenders begins, which are held in auction format.
With each "step" of the auction increases the value of the lot. The size of the "steps" is set by the organizers of the auction, as a rule, it amounts to no more than 10% of the initial value of the item. Every resident of Russia can take part in the auction. The one who offers a large amount wins.
Responsible for conducting tenders are financial managers or third-party enterprises. Organizational work on the auction is paid from the funds of the non-payer.
Bidding of property of debtors shall be declared invalid if not a single potential buyer has submitted an application for participation. If the application was submitted by one buyer and the value of the lot was higher than the initial value, the financial manager sells the bankrupt property.
If the public auction did not take place, they are held a second time. At the same time, the price of lots will be lower by about 10% of the initial cost. If the second attempt fails, the bankruptcy estate is sold at the expense of a public offer. The cost and terms of implementation in a public offer are reduced in proportion to the time of sale of property.
Trading floors
On electronic trading floors, property of debtors is being sold. Sberbank AST is the most popular among them. There are also other online sites:
- "Fabricant" (the site guarantees the transparency of transactions, offers more than 30 types of purchase and sale procedures).
- "Implementation Center" (organizes tenders for increase or decrease).
- "Lot-Online" (a universal platform with which items, goods and services are sold).
- UTender (a fully automated platform that stores trading data for 10 years).
Sberbank AST: features
As already mentioned, one of the largest electronic trading floors in Russia, where the property of debtors is being sold, is Sberbank AST. The acronym AST stands for "automated trading system."
It appeared in June 2009 by order of the Russian government as an electronic bidding operator, the scope of which includes the conclusion of state contracts for the supply of goods and the provision of services for the country's needs.
The rules of its work are fully defined in Federal Law No. 94.
By order of the Ministry of Economic Development in 2009, Sberbank AST was selected as the winner according to the results of the competition among electronic platforms. In the same year, the organization received state accreditation for a five-year period.
Sberbank AST conducts electronic tenders at the request of various commercial enterprises and provides platforms for large corporate clients. Also, purchases are made here for the needs of Sberbank of Russia itself.
What types of debt cannot be canceled
Although the sale of property is an effective method of satisfying creditors, bankruptcy cannot void some types of debt:
- alimony;
- payments to creditors for compensation for material and moral damage, including in connection with the infliction of harm to life and health;
- pay obligations;
- severance pay obligations;
- subsidiary liability ;
- reimbursement by the bankrupt of losses to the legal entity, the former participant of which he was;
- compensation for property damage;
- debt for the consequences of void transactions.
The sale of bankrupt property is a multi-stage process requiring the involvement of many specialized organizations. It is recognized as completed only after the transfer of funds to creditors. But this scheme in real life is far from ideal. In judicial practice, additional measures are often applied for the speedy sale of bankrupt property, including the use of qualified lawyers to monitor the progress of the entire process.