Publication date: 07.02.2024
Hello! My name is Kyrylo Tomakh, I am a practicing lawyer and co-founder of the law firm DKVA Legal Group. For over 3 years, I have been helping clients protect their rights, find solutions to complex legal situations, and successfully resolve disputes both pre-trial and in court.
How to reduce debt ?
Reducing the debt to the creditor is an important task for ensuring financial stability and improving the financial situation. Below is how to reduce debt to a creditor in Ukraine:
Negotiations with the creditor:
- Start by contacting the creditor to discuss debt reduction options.
- This may include restructuring the debt, lowering the interest rate, or entering into an agreement to repay the debt in installments.
- It is important to keep a record of all negotiations and agreements in writing for future reference.
Filing for Bankruptcy:
- In the event that you are unable to pay your debts, filing for bankruptcy may be an option.
- During bankruptcy, the court may order debt restructuring or asset liquidation to satisfy creditor claims.
- However, it should be borne in mind that the bankruptcy procedure has serious legal and financial consequences, so it is recommended to consult a qualified lawyer.
Checking the loan agreement:
Check the terms of your loan agreement for possible violations by the lender. For example, you may discover invalid or illegal terms that can be used in court to reduce the debt or cancel certain claims.
Seeking Professional Counselors:
- Counseling with financial or legal experts may provide you with additional options and strategies for reducing your creditor debt. They can provide tailored advice based on your specific situation.
- Avoiding additional debt: Avoid entering into new credit agreements or increasing current obligations to prevent further debt growth.
- It should also be noted that each situation is unique, and the selection of specific strategies to cancel debt to a creditor should be based on your specific financial situation and consultation with professionals.
- It is recommended to contact a qualified lawyer for individual advice.
- Writing off illegal interest is one of the ways to cancel a debt to a creditor in Ukraine.
- Unlawful interest may include excessive interest that has been charged by the creditor without proper notice or consent of the debtor, as well as interest that is contrary to the law or the terms of the credit agreement.
In order to successfully write off illegal interest, it is recommended to take the following steps:
Study your loan agreement:
- Carefully study the terms of your loan agreement, paying special attention to the terms regarding interest and its accrual.
- Check that all interest has been calculated according to the terms of the agreement and meets the legal requirements.
Contact the creditor:
- Start by contacting the creditor to discuss the delinquent interest situation.
- Provide specific facts and evidence regarding the improper charges and ask about the possibility of writing off these interests.
Submit a written appeal:
- If negotiations with the creditor have not yielded results, send a written appeal stating all the facts and evidence regarding the unlawful interest.
- Offer to write off these interests or carry out a recalculation on the basis of legislation.
Contacting Law Enforcement Organizations or Regulators:
In the event that the creditor refuses to acknowledge the illegality of the charges, contact the appropriate human rights organizations or regulators, such as the National Financial Services and Securities Markets Commission, for assistance and protection of your rights.
Going to court:
As a last resort, if other methods do not work, you have the right to go to court to resolve the dispute with the creditor regarding unlawful interest. Prepare all necessary evidence and arguments to support your position before the court.
