Debtors may have their only housing seized in bankruptcy.

      The text concerns amendments to the law "On Insolvency (Bankruptcy)." According to the initiative, enforcement can be directed towards housing if its characteristics significantly exceed the reasonable needs of the debtor and their family. When assessing, factors such as area, location, level of infrastructure, equipment, and other parameters will be taken into account.

      However, this measure will not be widespread. The sale of housing is only possible under a number of conditions: the debtor has no other property to settle debts, the funds raised are sufficient to purchase new housing and partially settle with creditors, and the decision is approved by the creditors' meeting and the arbitration court.

      The bill also provides for social guarantees. In exchange for the sold housing, the debtor must be provided with another one — in the same locality and meeting the requirements for normal living. Ownership of the old apartment is terminated only after the new one is formalized.

      If the auction does not yield a sum sufficient to purchase a replacement and settle debts, the housing will remain with the debtor, as reported on the Unified Resource for Developers' website.

      It is noted that the initiative has been prepared taking into account the position of the Constitutional Court and the already established judicial practice.