In Russian personal bankruptcy, property included in the estate is generally valued independently by the financial manager in a written decision. The creditor meeting may engage a professional valuer at the expense of those voting for the decision, while the citizen, creditors and authorised authority may challenge the valuation.
Financial manager
Identifies the value of the citizen’s assets and records the decision in writing.
Professional valuer
May be engaged by creditor decision and paid by those supporting it.
Challenge
Requires concrete methodological or factual errors affecting the applicant’s rights.
What Is Valued
Valuation concerns property already included in the bankruptcy estate. Ownership, spousal rights, security interests, restrictions and statutory exemptions must therefore be resolved first. A dispute about whether an asset belongs in the estate is not merely a dispute about price.
Personal-Bankruptcy Valuation Process
- The financial manager checks title, characteristics and restrictions.
- Comparable data and an appropriate method are selected; inspection and further records may be requested.
- The manager adopts a written valuation decision.
- After inventory and valuation, the manager drafts sale terms stating the starting price.
- The creditor meeting or committee considers the terms within the statutory period.
- Approved terms and the starting price are disclosed in the federal bankruptcy register.
When a Professional Valuer Is Used
A professional valuer is not mandatory for every asset of a citizen. The creditor meeting may order an appraisal of all or part of the estate, funded by those voting for it. An independent report is particularly useful for unusual real estate, shares, businesses, complex receivables or major differences between market indicators.
How to Review the Result
- confirm the object, area, condition and components;
- check security, lease, co-ownership and other restrictions;
- verify comparable properties and dates;
- review adjustments for material differences;
- distinguish market value from an assumed forced-sale discount;
- compare the starting price with the published sale terms.
How to Challenge Valuation
Article 213.26 expressly permits challenges by the citizen, creditors and the authorised authority. The application should identify a specific error and its impact: incorrect characteristics, stale comparables, omitted restrictions, missing inspection or a substantial divergence from supported market evidence. Useful exhibits include an alternative report, title records, listings and calculations.
For secured assets, the secured creditor determines the starting price and auction terms; disagreements with the financial manager are resolved by the bankruptcy court.
| Stage | Actor | Result |
|---|---|---|
| Asset identification | Financial manager, citizen and creditors | Inventory and estate records |
| Valuation | Financial manager | Written valuation decision |
| Independent appraisal | Valuer engaged by creditor decision | Valuation report |
| Sale terms | Manager and creditor meeting or committee | Terms stating the starting price |
| Disagreement | Commercial court | Judicial review of valuation, conduct or auction terms |
Frequently Asked Questions
Must the manager hire a valuer?
No. The default rule for a citizen’s property is independent valuation by the financial manager.
Who pays for an independent appraisal?
Those who voted for the creditor decision to engage the valuer.
Can an allegedly low value be challenged?
Yes, but concrete errors and infringement of rights should be proved rather than merely stating a preferred figure.
Is valuation the final sale price?
Not necessarily. The actual price is produced by the sale and auction process.
What follows valuation?
The manager prepares sale terms identifying the procedure, timing and starting price.
Official Sources
- Article 213.25 of Federal Law No. 127-FZ.
- Article 213.26.
- Article 138.
- Supreme Court Plenum Resolution No. 45.
Related guides: asset inventory, realisation of a citizen’s assets and auction challenges.
Is There a Dispute About Value?
An initial consultation can review the valuation records, starting price, evidence and the correct procedural remedy.
BOOK AN INITIAL CONSULTATIONThis material is general information. The procedure depends on the asset type, security interests, creditor decisions and orders in the particular case.