Sequestration

Sequestration is the process of separating part of the debtor’s property from the bankruptcy estate. As a result of sequestration, the debtor's property is separated and becomes the property of a special person - a sequester, who disposes of this property in the interests of creditors.

Sequestration can be carried out by court decision or by agreement of the parties. In the case of sequestration by court decision, the court appoints a sequester and determines the conditions for the use of the property. The sequester must comply with these conditions and not use the property for personal needs.

When carrying out sequestration in accordance with Art. 139 of the Bankruptcy Law distinguishes the following types of property:

1. Cash in rubles and foreign currency.
2. Property that is not real estate, including securities, cash in accounts with banks and other credit institutions, deposits, deposits, etc.
3. Other property, with the exception of real estate.

After sequestration, the debtor cannot dispose of his property, except for the purpose of fulfilling obligations to creditors. The sequester has no right to sell or transfer his property to other persons, or use it for his personal needs. He must keep accounting records and provide reports on the movement of property in accordance with legal requirements.

Sequestration can help the debtor retain his property if it is the only source of income and is necessary to satisfy the claims of creditors. However, sequestration can also lead to a decrease in the debtor's income and a deterioration in his financial situation. Therefore, when deciding to carry out sequestration, it is necessary to take into account all possible consequences and make an informed decision.