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Waiver of the lawsuit on the eve of bankruptcy

Waiver of the lawsuit on the eve of bankruptcy

In the Review of Supreme Court Practice, published by the Bureau 10 November, various aspects of the bankruptcy procedure have been repeatedly covered.

One of the legal positions of the Supreme Court was that, the waiver of the claim, committed by the debtor shortly before entering the bankruptcy proceedings, can be seen as an attempt to hide financial or property assets.

The Supreme Court took into account the arguments, that the debtor's waiver of the claim shortly before entering into bankruptcy proceedings may be made in order to harm the property interests of creditors by reducing the insolvency estate.

The Supreme Court concluded, that the waiver of the claim negatively affects the property interests of creditors, whereas the size of the bankruptcy estate decreases, and, as a consequence, the probability of repayment of the debtor's obligations to creditors in the framework of bankruptcy proceedings.

For this reason, the waiver of the claim can be appealed by the creditor in accordance with the bankruptcy rules, in the established procedural form, challenging the transaction by appealing the court order, by which it was approved.

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