Of course, almost every resident knows that if he is a debtor and his obligations are confirmed on the basis of a judicial act that has entered into legal force (on collection or in bankruptcy proceedings), his property can be sold to cover the debt of the creditor.
ATTENTION : our lawyer for enforcement proceedings will help you in the procedure for selling the debtor’s property, both on the side of the claimant and on the side of the debtor: professionally, on favorable terms and on time. Call today!
When is the sale of the debtor's property impossible?
To begin with, let us tell you that according to the norms of the current legislation, not all of the debtor’s property can be sold, with the exception of:
- The only residential real estate suitable for habitation (more information about the debtor’s only home is available at the link);
- Property that the debtor needs to carry out professional activities (for example, a car, office equipment);
- Individual items (wardrobe items, etc.);
- Property related to household use, furnishings;
- Food products.
The implementation itself can be either independent (subject to restrictions) or completed by force.
The debtor may independently sell property, the value of which should not exceed thirty thousand rubles, upon appropriate petition.
Compulsory implementation is carried out with the involvement of specialized organizations (Rosimushchestvo or the bailiff service).
What are the disadvantages of enforcement?
First of all, the amount received from such a sale will be lower than the market value, so if the debtor manages to sell his property before it is arrested, this will only be to his benefit. Note! The value of compulsorily sold property cannot be lower than the estimated value (there are exceptions).
Please note that real estate, securities, objects of historical and artistic value, expensive property (according to estimates of over five hundred thousand rubles) are sold only at auction.
USEFUL : read about the sale of property of a bankrupt debtor using the link
What can be included in the bankruptcy estate?
Let's consider what property a person can lose in the event of bankruptcy of an individual. All property assets of a citizen worth over 10 thousand rubles and real estate (regardless of value) are subject to sale.
The property of the spouses acquired during marriage will be auctioned. After its sale, the debtor's spouse will be paid half of the proceeds from the sale of the common property. In principle, the spouse can buy out half of the bankrupt's property if there is money to do so.
A citizen can retain property in bankruptcy on the basis of Art. 446 Civil Procedure Code:
The list of such property includes:
- the only housing and the land plot on which it is located, except for mortgage and pledged;
- household and personal items;
- machine, tools and devices necessary for disabled people;
- tools for performing professional duties
- seeds, feed, food, fuel supplies for cooking and living during the heating season;
- domestic animals and livestock (if they are not bred for commercial purposes), as well as buildings for their maintenance;
- funds in the amount of the subsistence minimum for the maintenance of the debtor and his dependents - will be paid monthly from income (salary, pension);
- prizes, state awards and memorable signs.
The property of children, parents, alimony, maternity capital, social benefits and payments is not included in the bankruptcy estate.
The procedure for selling the debtor's property
As follows from Article 87 of the Law on Enforcement Proceedings and mentioned above, if there is no dispute over the valuation of property, its value is more than 30 thousand rubles. it will be sold by a specialized organization at open bidding (auction), in the following order:
- Within 10 days from the date of signing the act of acceptance and transfer of seized property, it (the specialized organization) must post the relevant information in the media (printed or posted on the Internet)
- If receivables are subject to sale, the rules of Article 76 of the Law apply to such auctions.
- If investment shares are sold, the bailiff makes demands for their repayment to the relevant management company.
- In the period from 10 to 20 days from the date of assessment of the property, it is transferred by the bailiff for sale, about which a corresponding decision is made. The corresponding acceptance certificate is signed (between the bailiff and the specialized organization).
- The value of property (as well as receivables) put up for auction cannot be lower than its estimated value (if you are interested in the procedure for challenging the bailiff’s assessment of property, then follow the link).
- If the property is not sold within 30 days (except for sale at auction), its value may be reduced by fifteen percent (by decision of the bailiff).
- If the property is not sold within 30 days after the price reduction, it can be offered to the creditor in accordance with the priority (as repayment of the debt).
- The transfer of property to the creditor is carried out taking into account its reduced value, that is, 25% below the estimated value. If its value is greater than the amount of the debt, the difference must be returned to the SSP deposit. However, this rule applies to the creditor if he agrees to accept the property.
If the creditor does not agree to accept the property mentioned above, it is subject to return to the debtor, about which a corresponding resolution is made and an act is signed, of which the parties participating in the enforcement proceedings are notified.
Advantages of purchasing at auctions and auctions
Although an auction involves identifying a buyer through competitive bidding methods, this option for acquiring property can significantly save money.
If the cost is less than 500,000 rubles, an auction is not necessary, and the market value is assessed taking into account the standard and physical wear and tear of the objects. Such a purchase will cost significantly less than similar offers on the open market.
It is necessary to take into account the specific timing of implementation. The law establishes a two-month procedural period during which FSSP employees must complete the entire procedure. If no buyer is found within the specified period of time, the price of the property is reduced by 15%. This reduction will continue every two months until a buyer appears.
Is it profitable or unprofitable to buy the seized property of bankrupts? As a rule, the task of the bankruptcy manager is to complete the bankruptcy procedure as quickly as possible, which can lead to a significant reduction in the initial cost of the objects. In addition, not every potential buyer has the opportunity to constantly monitor notices of upcoming auctions, as a result of which a minimum number of participants may apply for the auction.
Time limit for the sale of the debtor's property by bailiffs
After the court decision on debt collection has entered into legal force and a writ of execution has been received by the SSP, the SSP official initiates enforcement proceedings and searches for property.
Within a month from the date of search for property, it must be assessed by the bailiff himself or with the involvement of a specialist (if its preliminary value is more than 30 thousand rubles).
Then, within a period not exceeding 20 days (but not less than 10), the property is transferred for sale. Acceptance of property is carried out within a period not exceeding ten days.
Initially, the property must be sold within a month; after this period, its value is reduced by fifteen percent, and if a buyer is not found within this period, then the property is offered to the creditor as a means of repaying the debt. Moreover, the value of this property should be 25% lower than the estimated value.
If the creditors do not want to accept the property as repayment of the debt, then it is transferred to the owner. Thus, the total period for the sale of property is 3 months (conditionally, of course).
What to do if there is no property
The procedure for selling property is carried out even if the debtor does not have property to be included in the bankruptcy estate. Let’s assume that a citizen who has decided to go bankrupt has only a single home and personal belongings: in this case, no property will be confiscated from him, and the procedure will go much faster.
If the debtor has no property, the financial manager:
- makes an inventory
- submits it to the court for consideration
- the court learns that the debtor does not have property that could be used to pay off the obligations
- debts are written off, bankruptcy proceedings are completed
That is why if you have no property, but have debts, then admitting financial insolvency is the best solution to the problem.
Petition for the sale of the debtor's property
At the request of a person, namely the debtor himself, his property (not exceeding the value of 30 thousand rubles) can be alienated by him independently (Article 87.1 of the Law on Enforcement Proceedings).
The deadline for submitting such a petition is no more than 10 days from the moment he learned about the assessment of the property. If there are violations, then we, as lawyers for the protection of the debtor’s rights, will help you.
After the bailiff receives the above-mentioned petition, he issues a corresponding resolution, according to which enforcement measures are postponed. In addition, the commented resolution should determine that funds from the sale should be deposited with the SSP within no more than 10 days from the moment when the specified non-normative act was issued. In addition, the debtor is warned of liability for failure to transfer funds, as well as for inaction resulting in failure to sell property.
After the expiration of the 10-day period, the bailiff may invite the owner to keep the unsold property for himself, otherwise it will be transferred for compulsory collection, a resolution, which is sent to the parties to the enforcement proceedings.
Foreclosure system
Foreclosing on the debtor's property includes several steps or stages. First, a seizure is imposed on property in general or a specific object. At the second stage, an inventory is made and a seizure is made. The third step is the assessment of the debtor’s property. For this purpose, experts may be involved if we are talking about expensive objects. The next task is to resolve the issue of transferring property for storage and ensuring its integrity. Fifth, the property is sold. At the final stage, the collector receives the debt due to him or part of it. The issue of mutual offset of homogeneous claims can also be resolved. That is, foreclosure is a long, multi-stage process associated with procedural delays. To seize certain objects, the competence of the bailiff is not enough and a court decision is required. Certain categories of property are not subject to sale under any circumstances. In this context, it is important that a competent legal assessment of the situation is given, risks and prospects are analyzed, and a behavior strategy is developed.
Appealing the procedure for selling property
In addition to the above, we consider it necessary to tell you how and where to complain if your rights are violated by the actions of SSP officials.
So, such a complaint can be filed in the order of subordination - to the senior bailiff. You can send a complaint by mail (including electronically) or hand it in yourself. In addition to the mandatory details of the person filing the complaint and the person who violated the right, you must indicate the details of the non-normative act about which you are complaining or the actions/inactions of the SSP employee, and describe the situation itself. The petition part should indicate what you want to achieve if the complaint is satisfied. Of course, sign, date and attach documents confirming your requirements.
The complaint itself must be considered within a period not exceeding thirty days from the date of its receipt.
