SOLE PROPRIETOR · PROPERTY · ESTATE
A sole proprietor has no property separate from the individual: personal and business assets are assessed together. Ownership alone, however, does not mean the law permits sale of every item.
Legal provisions checked on 5 September 2026.
Which assets must be disclosed?
| Asset | General approach | Review |
|---|---|---|
| Stock | Realizable property | Inventory |
| Equipment | Valuation and sale | Title and security |
| Business account | Debtor’s money | Statements |
| Receivables | Property claim | Contracts and acts |
| Marital property | Debtor share may arise | Purchase date and source |
Inventory before filing
Quantity, condition and location should match records.
Separate third-party property
Lease, commission and custody require documents.
Avoid last-minute disposal
Price, counterparty and use of proceeds will be reviewed.
Can equipment needed for work be retained?
Article 446 of the Civil Procedure Code protects items necessary for professional activity, except items worth more than RUB 10,000. Saying that a machine generates income is therefore insufficient. Evidence of the item’s purpose, necessity and value matters. This is distinct from the court’s separate power to exclude low-value property under Article 213.25(2), which has its own conditions and aggregate value limit.
Example: an owned tool and a rented machine
A tradesperson owns a necessary tool worth RUB 8,000 and rents a machine. For the tool, assess professional-use immunity and evidence of value. The machine is not the debtor’s property: the rental agreement and owner’s records matter instead. The illustrative price is not a valuation, and the item’s label does not predetermine the manager’s decision.
Personal items and a spouse’s property
Calling property personal does not create immunity: a second car or commercial premises are not protected merely because they were not acquired for business. The law nevertheless protects specified household items, living funds and other Article 446 categories. Housing, security interests and special protection grounds require individual assessment.
Registering marital property in a spouse’s name does not eliminate the estate’s possible interest. Check acquisition date, source of funds, ownership regime and joint obligations. Do not assume that every asset will simply be halved or that a spouse’s property can never be affected.
How to request exclusion of an item
Give the manager an itemised list and evidence: agreements, receipts, value information, purpose and ownership records. Under Article 213.25(3), the manager excludes protected property; the bankruptcy court resolves disagreements. Do not conceal or transfer items while the issue is unresolved.
Once the debtor is declared bankrupt, the manager controls estate property. A debtor’s own sale of such property is not made permissible by charging market value. Keep receivables records too: a claim against a customer is an asset even before payment arrives.
Business Asset Map
Sole proprietor bankruptcy · Property inventory
FAQ
Will closing the sole proprietorship protect equipment?
No. Deregistration does not change ownership or itself exclude the items from the estate.
Can goods held on commission be omitted?
Separate third-party goods from your stock and prove their status with agreements and records. Do not conceal their presence during inventory: the documents explain why they are not yours.
Is money in the business account protected as working capital?
There is no blanket immunity for a sole proprietor’s working capital. Source, ownership and statutory exceptions must be checked.
Legal sources
Article 213.25 of the Bankruptcy Law addresses property, exclusions and the manager’s powers; Article 446 of the Civil Procedure Code lists enforcement immunities.
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