1. Development of the discharge procedure for secured creditors’ claims in insolvency proceeding

2. The legal status of secured creditors in insolvency proceeding Review by effectual legislation secured creditors’ claims are discharged prior to the other creditors except for obligations to the first and second priority creditors if their claims occurred before a relevant contract of pledge/mortgage had been concluded the pledged or mortgaged debtor’s assets are included in a bankruptcy estate the pledged or mortgaged debtor’s assets are realized by public sale; pledgee or mortgagee cannot take property on the pledged or mortgaged debtor’s property

3. The problems to solve the discharge procedure for secured creditors’ claims in insolvency proceeding; the discharge procedure for secured creditors’ claims which have arisen after the commencement of insolvency proceeding; a possibility of exception the pledged or mortgaged debtor’s assets from a bankruptcy estate; the recovery procedure for pledged or mortgaged property in insolvency proceeding new ways of realization of the pledged or mortgaged property in insolvency proceeding and consequence in law of these ways; the discharge procedure for secured creditors’ claims (mortgagee’s claims) if mortgager is insolvent and the third party’s obligations are provided by mortgager’s property

4. International experience of regulation remedies for secured creditors Foreign legislations provides for: secured creditors can exclude pledged or mortgaged debtor’s property from a bankruptcy estate and enforce this property; secured creditors can realize pledged or mortgaged property by auction without trustee, also pledged or mortgaged property can be realized by private sale on basis of court decree

5. International experience of regulation remedies for secured creditors The trustee determines the terms of sale for pledged or mortgaged debtor’s property: by public or private sale Secured creditor may become the owner of the asset pledged/mortgaged according to court order and expert opinion

6. The aims of amendments to legislation with respect to the legal status of secured creditors in insolvency proceeding to eliminate conflicts of laws concerning the legal status of secured creditors in insolvency proceeding to correct provisions relating the discharge procedure for secured creditors’ claims to protect third parties rights and interests to develop provisions concerning the recovery and realization procedures for pledged or mortgaged property in insolvency proceeding

7. Review of foreign legislations Main points: the peculiarities of secured creditors claims discharge; remedies for secured creditors; the priority of secured creditors claims discharge in insolvency proceeding the ways of security rights enforcement; In what cases is a court process or out of court procedure applied The realization of pledged or mortgaged debtor’s property; the special status of creditors’ claims which have arisen after the commencement of insolvency proceeding

8. Ministry of Economic Development of the Russian Federation Bankruptcy division