Annotation

This article examines the legal nature of claims of public-law entities arising from the provision of compensation housing to construction participants in the context of developer bankruptcy. The author analyzes the conflict between the mandatory priority order established by Paragraph 7 of Chapter IX of Federal Law No. 127-FZ of October 26, 2002 «On Insolvency (Bankruptcy)» and the subrogation nature of the claims of a constituent entity of the Russian Federation that has performed the debtor’s obligation. Based on a critical analysis of judicial acts, including the Ruling of the Supreme Court of the Russian Federation of July 20, 2026 in Case No. А40-266163/2019, the approach of the highest judicial instance is substantiated, which qualifies the regional recipient of citizens’ claim rights not as a fourth-priority bankruptcy creditor, but as a legal successor whose claims are subject to priority satisfaction. The conclusion is drawn on the necessity of legitimizing the subrogation construct in bankruptcy legislation in order to stimulate regional social protection mechanisms.