What a Bailiff Cannot Seize From an Individual Debtor in Russia: Article 446

Russian bailiffs have broad powers over a debtor's property, but Article 446 of the Civil Procedure Code (GPK) lists what cannot be taken from an individual. The most discussed protection is the sole residence rule: a home that is the only place suitable for permanent residence for the debtor and his family cannot be seized, together with the land under it, unless the home is mortgaged and mortgage law allows enforcement. Other protected items include ordinary household belongings, tools of a profession and food.

Many debtors do not know these limits, and many creditors expect more than the law gives. This guide explains the sole residence rule and its limits, the other items on the list, how to prove that property is protected, how the Constitutional Court has refined the rule and what a debtor should do when a bailiff seizes protected property.

The Sole Residence Rule

The home of a debtor-citizen cannot be seized if it is the only residential premises suitable for permanent residence for the debtor and his family members living with him. The protection extends to the land plot on which the home stands. The exception is a mortgaged home when the mortgage law permits recovery against it.

The commentary says that proof consists of the register entry of the debtor's ownership and the registration of residence at the address. If the debtor lives in rented premises while owning another home, the protection may not apply to the owned home, because it is not his only residence in practice.

In its Ruling No. 15-P of 26 April 2021 the Constitutional Court held that the immunity covers a home only to the extent that its area and value are reasonably sufficient to meet the need for housing. The rule is therefore not absolute: a court may refuse protection to a home that clearly exceeds that need, provided the debtor and his family are left with adequate housing.

Other Protected Property

Article 446 lists further items. They include ordinary household furnishings and clothing, excluding jewellery and luxury items. Tools and equipment needed for the debtor's profession are protected, except where each item is worth more than ten thousand rubles.

Non-commercial livestock, poultry, bees, their feed and outbuildings are protected, together with seeds needed for the next sowing, food and cash up to the subsistence minimum for the debtor and dependants. Fuel for daily cooking and heating in the heating season is also protected.

Vehicles and other items needed because of the debtor's disability, prizes, state awards and honorary badges and non-commercial pets are on the list. A free land plot given as social support to a family with three or more children, and the only registered vehicle of a large family, are protected as well.

Organisations

Article 446(2) says that the property of organisations is protected only as federal law provides. A company debtor cannot invoke the list for citizens. The protections for companies are found in the enforcement and insolvency laws, for example restrictions on seizing certain state property.

An individual entrepreneur is an individual and may rely on the list for his private property, though the line between private and business property needs care. The tools used in business are protected only within the rule on professional tools.

For a debtor with foreign property, the Russian bailiff can act only on property in Russia, and the protection rules of Article 446 apply to that property.

How to Prove That Property Is Protected

The debtor files a document with the bailiff stating which property is protected and why, and attaches proof. For the sole residence, he provides the register extract, the registration certificate, a document that shows who lives there and a statement that he owns no other residential premises.

If the bailiff ignores the application, the debtor may complain to the senior bailiff or to the court, as another page on challenging bailiffs explains. The time limit for such complaints and claims under the enforcement law (Federal Law No. 229-FZ, Article 122) is ten days from the day the debtor learned of the violation.

For cash and income, the debtor shows the source of the money: pension, social payments, wages. If the bank has blocked an account with protected funds, the debtor sends the bank and the bailiff the documents that identify them.

Mortgaged Property and Joint Property

The sole residence rule does not protect a mortgaged home if the mortgage law allows recovery. A creditor whose claim is secured by the mortgage can enforce against the home even if it is the only one.

Joint property of spouses raises a separate question. The creditor of one spouse may ask for the share of the debtor spouse to be separated from the joint property and then seize it, subject to the protection of the sole residence. The details depend on the facts of ownership.

A debtor who thinks that a transaction with a relative will protect the property should understand that transfers made to avoid creditors can be challenged and that the transfer may not help.

Cash, Wages and Bank Accounts

Article 446 protects food and cash up to the subsistence minimum for the debtor and his dependants, and it protects wages and other income at the level of the subsistence minimum for the working-age population. The protected amount is not a separate account: it is part of the money on the account, and the bank or the bailiff has to leave it to the debtor.

A debtor whose account is blocked should write to the bailiff and the bank, name the source of the money, attach proof such as a pension certificate or an employer's statement and ask for the protected amount to be released. Other pages on this site describe the exemptions for certain payments and the time limits for complaints, and the debtor should check the current rules before relying on a particular percentage.

Money that comes from sources that are not protected, for example a sale of a car or a business payment, is not covered by this rule merely because it lies on the same account. Keeping protected income on a separate account makes the proof easier.

If Protected Property Is Seized

Collect the documents. File a written application with the bailiff to release the property from seizure. If that fails, file an administrative claim within ten days against the bailiff's decision or, if the dispute concerns ownership, a separate claim to release the property from the seizure list. Ask the court for interim measures to stop the sale.

A debtor abroad whose Russian property is seized can act through a representative. The power of attorney must cover enforcement proceedings and challenges.

The attorney reviews bailiffs' actions, prepares applications on protected property and represents debtors in court. First review covers the enforcement document, the list of seized items and the debtor's documents.

The main channel of communication with the attorney is email: attorneypetrova1@gmail.com.