Ways to satisfy the claims of construction participants in the bankruptcy case of developers in Russia

Abstract

Bankruptcy legislation in Russia is constantly changing. The main purpose of such changes is to create favorable conditions for creditors. During the bankruptcy case of developers, the rights of construction participants were violated for a long time. The Russian bankruptcy law currently contains special rules governing the bankruptcy of developers. The law provides for various guarantees of the rights of construction participants. The experience of applying bankruptcy legislation to developers abroad demonstrates its peculiarities. The task of the state is to ensure a high level of protection of the rights of citizens whose funds are attracted for the construction of housing. The bankruptcy law provides for special ways to satisfy creditors’ claims in a developer’s bankruptcy case. Such methods include the creation of a housing construction cooperative, the settlement of claims by transferring residential premises, and the attraction of a new developer to complete construction. Much attention is given to the transfer of a developer’ right on the object under construction and a plot of land to the housing and construction cooperative or another specialized consumer cooperative as a means to satisfy the requirements of construction participants. The author reveals the conditions for such satisfaction, specifics of making the corresponding decision.