This article examines current issues related to the realization of the right to housing in insolvency (bankruptcy) procedures. It analyzes the conditions for the admissibility of the substitute housing mechanism, including the economic justification for increasing the bankruptcy estate, the need to ensure a decent standard of living for the debtor and members of their family, as well as compliance with the requirement that substitute housing be provided prior to the realization of the substituted property. The article also addresses problematic issues of legal practice, particularly those related to determining the location of substitute housing in the context of the administrative and territorial characteristics of large urban areas, discrepancies between the debtor’s center of vital interests and the location of their property, as well as the possibility of replacing an individual residential house with an apartment. The conclusion emphasizes the need for legislative consolidation of uniform criteria for the application of the substitute housing institution in order to ensure legal certainty and consistency of judicial practice.