Personal insolvency: what happens to your assets?

An assessment of personal insolvency cannot promise that every asset will be retained or every obligation discharged. Protection of a sole home does not depend only on the number of apartments owned. Mortgages, actual use and the property’s characteristics matter. The Russian Supreme Court permits consideration of selling luxury housing with replacement accommodation where the necessary conditions and balance between family and creditor interests are met.

Source: Russian Supreme Court review of personal insolvency cases, 18 June 2025.

Start with real estate, vehicles, company interests, accounts and other significant assets. For each, record when and how it was acquired, the documented owner, any security and its actual use. Identify jointly acquired property and cases where the paperwork does not clearly reflect the family’s ownership history.

Gather contracts, title records, loan and security documents, spousal agreements and inheritance records. For housing, include information on residents, family composition and relevant circumstances. Where a mortgage is involved, add the current debt calculation, payment schedule and bank correspondence, including settlement options already discussed.

Prepare information on income sources and regular family expenses. Identify expenditure relating to children, health and other personal circumstances and gather evidence. These records enable a meaningful discussion; an informal estimate does not establish what can be supported by documents.

Include earlier sales, gifts and large transfers in the discussion. Reconstruct their commercial or family purpose, payment arrangements and the subsequent use of funds. If documents have been lost, list what can be recovered from a bank, counterparty or your own archive. Transferring property to a relative is not a substitute for assessing the risks.

Discuss each significant asset separately: which facts are established, which need clarification and what positions other parties may take. Explore options for secured debt and implications for jointly owned property. An initial review should identify the questions and documents needed for an informed decision, without promising a predetermined outcome.