FEATURES OF THE PARTICIPATION OF SECURED CREDITORS IN A BANKRUPTCY CASE

Abstract

The article examines the features of the legal status of secured creditors in a bankruptcy case. The emergence of secured creditors is due to the fact that before the opening of bankruptcy proceedings, such a creditor provided for additional protection of his claims against the debtor by providing security for the performance of the obligation. The purpose of the article is to disclose the regulatory and legal regulation of the protection of the rights of secured creditors in a bankruptcy case and to identify the characteristic features of the participation of secured creditors in the bankruptcy process. It is emphasized that secured creditors are the most protected category of creditors in a bankruptcy case. In this context, the following provisions of bankruptcy legislation are disclosed and analyzed: 1) a secured creditor is a party to the case on an equal footing with a bankruptcy creditor and a debtor; 2) a commercial court may limit the effect of a moratorium in exceptional cases if such a moratorium may result in the loss of the secured creditor's collateral; 3) there is no statute of limitations for secured creditors to present creditor claims; 4) if the secured creditor wishes to become a bankruptcy creditor, the secured creditor may fully or partially waive the security; 5) the arbitration manager’s report on the accrual and payment of monetary compensation, the implementation and reimbursement of expenses must be approved by the creditors’ meeting (in the case of insolvency of an individual) or the creditors’ committee (in the case of bankruptcy of a legal entity), and in terms of expenses related to the collateral property, by the secured creditor; 6) the rehabilitation plan must be approved by the secured creditor; 7) the repayment of the claims of the secured creditors at the expense of the bankrupt’s property, which is the subject of security, is carried out out of turn; 8) if the debtor’s property, which is the subject of security, is not sold at a repeated auction, the creditor whose claims it secures has the right, within 20 days from the date of the end of this auction, to demand from the arbitration manager the sale of the unsold property to him. The restrictions provided for in bankruptcy legislation, which concern the legal status of secured creditors, are investigated.