Nazheda V. Rodina

The article discusses the issues of applying the mechanism of subordination of claims of mortgagees in insolvency (bankruptcy) cases. The mechanism of subordination of creditors' claims secured by the debtor's pledge is differentiated depending on whether the claims of the debtor himself or a third party are secured. The grounds and mechanisms for protecting the rights and interests of creditors and bankruptcy estate are analyzed. The order of satisfaction of the creditor's claims, the obligation to which is secured by collateral, is considered, the order of satisfaction of the obligation secured by collateral is determined, if there are grounds for applying the subordination mechanism. The grounds for challenging the debtor's securing transaction for the obligations of a third party are considered. The consequences of qualifying the securing transaction as void on general grounds and contested on special grounds of the Bankruptcy Law are analyzed.