Oksana Savytska
the United Voices in Action program’s lawyer

In May, the United Voices in Action program’s lawyers started getting an influx of requests from IDPs who were unable to make payments using their bank cards. It was found that during martial law, debtors could access funds from their accounts if their debt was less than one hundred thousand hryvnias. However, from May onwards, the limit on spending transactions was reduced to two minimum wages — UAH 13,400.

What’s the next step? How can a debtor gain access to these funds from a seized bank account? The first step is to submit a request to either the state enforcement service or the private enforcement officer who applied the seizure, requesting the identification of an active bank account for performing expenditure transactions.

The request should include:

• The active account number;
• The name of the bank where the account is held.

The request can be submitted either personally or electronically, in which case it must be endorsed with an electronic digital signature. It’s critical to document the date the executor received the application. For instance, send the document via registered mail with a list of attachments, or get a receipt confirmation when submitting in person.

If funds are seized on active accounts in the same bank or on active accounts across different banks, only one active account is selected for expenditure transactions.

After receiving the application, the public or private enforcement officer must issue a decision to identify the debtor’s bank account for the purpose of making expenditure transactions within two business days. If no resolution is made within two days, a complaint can be lodged against the officer for their inaction. The procedure for lodging a complaint varies depending on whether it is against a public or private enforcement officer. A complaint about a public officer’s inaction should be lodged with the head of the bailiff’s department to which they report. If a private enforcement officer is inactive, a written request should be submitted to the Ministry of Justice of Ukraine or the Council of Private Executors of Ukraine for an examination of their actions. In extreme cases, lodge a complaint with the court.

By no later than the next working day following the issuance of the decision, the officer must forward the documents to the bank and check for other enforcement proceedings.

Key Point: The maximum expense limit is UAH 13,400 per month. The number of enforcement proceedings and the debt amount does not influence the amount the debtor can “unfreeze”. It also doesn’t roll over. In other words, if the account holder has not spent UAH 13,400 this month, it doesn’t mean they will have UAH 26,800 available next month. There’s a monthly limit of UAH 13,400, which doesn’t carry forward.

You can verify information on ongoing enforcement proceedings in the Unified Register of Debtors. Additional information about the state enforcement service can be found on the Ministry of Justice website, while contact details of private enforcement officers can be found in the Unified Register of Private Enforcement Officers of Ukraine.

Every day, IDPs with blocked accounts reach out to our lawyers. We assist in preparing an application to a public or private enforcement officer, enabling individuals to use their funds up to the maximum amount stipulated by law.

There are instances where the rights of debtors are infringed. For example, special accounts may be seized, which is unlawful. In these instances, we also assist in drafting an appropriate claim and explaining the action plan. We provide this legal assistance at no cost. To make use of this service, IDPs simply need to complete an online form briefly outlining their issue and providing contact details.

Source: Rubryka