COLLECTION OF DEBT FROM MILITARY SERVANTS
For many Ukrainians mobilized into the army, changes in life have become unexpected and abrupt. Some did not have time to complete all their civil affairs, and in the conditions of the service there is no time for this at all.
Unfortunately, the number of cases when banks go to court with lawsuits to collect debts from military personnel has increased. The court and the bank do not take into account that the debtor is defending the country or is unemployed at home. How to act in such a situation, how to avoid lawsuits and fines, if you are a military man, we will consider in this article.
Requirement for payment of debt from military personnel
According to Clause 15 of Article 14 of the Law of Ukraine "On Social and Legal Protection of Servicemen and Their Family Members", servicemen called up during mobilization may not be charged penalties, fines or interest for using credit during martial law and six months after its termination.
If the bank charged interest, fines or penalties due to ignorance of the status of a military serviceman, the military man has the right to apply to the bank to write off these charges for the period of mobilization and suspend their further accrual.
This prohibition applies to:
- banking institutions;
- microfinance organizations (MFIs);
- pawn shops;
- credit unions;
- leasing companies;
- other legal entities and individuals providing financial services.
Financial institutions can increase the interest rate if the contract provides for the possibility of its change.
Protection of military borrowers
In July 2022, the Verkhovna Rada of Ukraine introduced amendments to the legislation on consumer credit aimed at settling the issue of debt repayment to banks by military personnel and members of their families during martial law.
Under the new rules, creditors are barred from dealing with service members and their families regarding debt payments for the duration of martial law and for 90 days after it ends or is lifted. This prohibition applies to all types of credit obligations of military personnel to banks and other financial institutions.
Algorithm of actions for military personnel to avoid accrual of debts
One of the main problems faced by mobilized servicemen is the lack of information about their status in banking institutions, which leads to the continuation of penalties and fines for overdue debts. To solve this problem, it is necessary to provide the creditor bank with the appropriate documents confirming the service status of the serviceman.
Such documents include:
- A certificate of conscription for military service or an extract from the order of enlistment in the ranks of the Armed Forces, a copy of a military ticket with a note on enlistment (for reservists);
- Certificate of military service under contract in form No. 5 (for contract workers)
Lawyer's consultation in the event of a credit problem
Consulting a lawyer when a credit problem arises is important for understanding your rights and possible ways to resolve the situation. A lawyer will help assess your case, analyze the terms of the loan agreement, negotiate with the creditor to achieve more favorable debt repayment terms, provide legal support in case of violations by the creditor or the need for a lawsuit, as well as consider the possibility of bankruptcy in case of serious financial difficulties.
Current questions - answers
Questions
What are the limitations for collecting arrears from the wages of military personnel?
Answer
The legislation prohibits the collection of arrears from the wages of military personnel in an amount exceeding 50% of their income, in particular to ensure their basic needs and a decent standard of living. There are also special rules that limit the collection of revenues paid from the state budget.
Questions
How can the debt collection procedure change if a serviceman is in a combat zone?
Answer
If a serviceman is in a combat zone, the legislation may provide for a delay or temporary suspension of debt collection. This is due to the need to ensure the rights of military personnel in difficult service conditions and protect them from financial difficulties during the performance of official duties.
Questions
What rights does a serviceman have if the creditor violates the rules of debt collection?
Answer
A military serviceman has the right to appeal the creditor's actions that violate the legal requirements for debt collection. This includes submitting a complaint to the court or to the bodies that control the activity of creditors, as well as the opportunity to submit an application to the military commissariats to receive legal assistance and protect your rights.
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Military personnel who are mobilized or in a combat zone may face debt collection problems due to untimely notification of their status by banks and financial institutions. The legislation of Ukraine provides protection for such persons, prohibiting the charging of penalties and fines during martial law and for another 90 days after its end. It is important that servicemen provide appropriate documents to creditors to confirm their status and avoid negative consequences. In case of problems with creditors or violation of their rights, consulting with a lawyer is an important step to protect your interests and effectively resolve the situation. Order a consultation online, call us or visit our office for professional legal support. Military lawyer online, military lawyer, military lawyer Kyiv, wartime lawyer, military lawyer, legal advice during war, lawyer in war.
