The Verkhovna Rada has adopted in the first reading draft law No. 14005 aimed at simplifying and digitalizing the enforcement proceedings. The document includes a number of innovations that will strengthen control over the property of debtors and complicate their ability to evade financial obligations.
This is reported by Finway
Main Changes for Debtors and Creditors
The draft law stipulates that creditors will be able to obtain information about the debtor more quickly and impose liens on their property. This will significantly complicate the sale or re-registration of movable and immovable property by debtors until the debt is fully repaid. The introduction of such measures is expected to reduce the number of cases where debtors attempt to hide or dispose of property without complying with court decisions.
Digital Tools and Process Automation
An important component of the initiative is the expansion of the capabilities of the automated enforcement system. It is planned to integrate it with government agencies, banks, financial institutions, and non-bank payment service providers. Additionally, the interaction of the Unified Register of Debtors with other state registries will be ensured.
If a person applies with the intention of disposing of or pledging property, the presence of a record in the Unified Register of Debtors will serve as grounds for refusing to carry out such actions, except in special cases defined by law.
“The aim of the document is to prohibit debtors from selling movable and immovable property until the debt is repaid”.
The draft law also contains a provision that in the event of funds being credited to the account of the enforcement agency or private executor that are subject to collection, the system will automatically generate a notification of debt repayment. Following this, the relevant information about the debtor will be removed from the Unified Register of Debtors.