New Law on Debts: What Has Changed

Previously, inclusion in the Unified Register of Debtors (URD) and the imposition of restrictions required a separate decision by an enforcement officer. Now, information will be entered into the register automatically. This means that restrictions can be applied immediately after entry into the URD, regardless of the amount of debt—whether it is a minimal fine of 170 UAH, alimony, or utility payments.

The legislation предусматривает the following sanctions:

• blocking registration actions with real estate and vehicles;
• freezing funds in bank accounts and electronic wallets;
• seizure of securities;
• information exchange for оперативного identification of assets.

At the same time, the threshold for enforcing claims against a debtor’s only residence by court decision has been increased from 20 to 50 minimum wages (432,000 UAH). For military personnel during martial law and for one year after it ends, such enforcement is not allowed. Additionally, in combat zones or temporarily occupied territories, arrests related to utility debts are automatically lifted.

The new law also provides for:

• direct electronic integration of the Enforcement Proceedings Register (ASVP) with state registries (real estate, vehicles, securities), banks, non-bank payment institutions, notaries, and other bodies;
• automatic lifting of seizures and removal from the URD after full repayment of the debt (without applying to an enforcement officer);
• the possibility of issuing court decisions and enforcement documents in electronic form with a qualified electronic signature.

Overall, the introduced changes are aimed at reducing processing times, minimizing the human factor, and increasing transparency.