FBK Legal Provides Commentary for ‘Probankrotstvo’: Cassation Court Rules Good Faith Debtor Protected in Case of Invalid Assignment
The district court highlighted that the consequences of the invalidity of an assignment agreement for the debtor depend on their good faith when repaying the debt to the new creditor. The website ‘Probankrotstvo’ issued a report regarding case No. A70-24691/2022.
Anna Aktanaeva, Manager at FBK Legal, on the case:"The cassation ruling reinforces the balance of interests between creditors and good faith participants in legal transactions, while also establishing a predictable legal framework for parties involved in assignment deals. At the same time, we anticipate an increase in cases where, when challenging an assignment, the primary focus will be on the debtor’s actual good faith, the fulfilment of their obligations, and the conduct of the parties involved. This legal position sets an important precedent for protecting honest participants in legal transactions, while simultaneously increasing the accountability of assignees".
