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Debts to housing and communal services: Impact on social benefits and subsidies

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Симиренко Ганна
Симиренко Ганна
Lawyer
Ukraine / Kyiv

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Publication date: 23.05.2024

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Debts to housing and communal services: Impact on social benefits and subsidies


Debts to utilities, or housing and communal services, are becoming one of the most urgent problems for many citizens. These debts can have a serious impact on their ability to receive social benefits and subsidies designed to help pay for housing and utilities.


The impact of debts to housing and communal services on various types of social benefits
Pensions and benefits: Debts to housing and communal services may result in the withholding or even reduction of pension benefits. This can happen if the debt for communal services is large and exceeds the allowed limits.
Benefits for the disabled: Disabled people of groups 2 and 3 are entitled to various benefits, including benefits for the payment of housing and communal services. However, the existence of debts to housing and communal services may make it difficult to obtain these benefits or even lead to their cancellation.


Subsidies: Subsidies are given to low-income citizens to offset the costs of paying for utility services. However, the presence of debts to housing and communal services may complicate the process of assigning subsidies or reduce their amount.

What to expect in case of debt?


When a consumer has unpaid utility bills and refuses to resolve them voluntarily or enter into a restructuring agreement, the case may be taken to court to collect the debt. In such a case, the court process can proceed in a simplified manner, through the issuance of a court order without summoning the parties, in accordance with section 2 of the Civil Procedure Code of Ukraine.According to Part 2 of Article 625 of the Civil Code of Ukraine, the creditor may demand payment of the debt taking into account the inflation index for the entire period of delay, plus three percent per annum of the amount of the debt.


If the debtor does not respond to notices and calls to pay debts, deliberately accumulates debts and does not seek help, the case may be referred to court. The court can impose various sanctions, from a ban on traveling abroad to the seizure of movable and immovable property.


In the case of a positive court decision, the debt can be forcibly collected. First, it may refer to the debtor's funds, which will be seized or debited from his accounts without his consent. If the debtor does not have enough funds to repay the debt, foreclosure can take place on his property if the amount of the debt exceeds a certain set limit.
Therefore, it is important to resolve the issue of debt in a timely manner, preventing the worsening of the situation and possible negative consequences due to court sanctions.

 


Issuance of subsidy and verification of its status
If a citizen has debts to housing and communal services, it is important to issue a subsidy in time to compensate for the costs of housing and communal services. To do this, it is necessary to contact the local center of social services or another relevant institution and submit an application together with the necessary package of documents.
It is also important to periodically check the status of the subsidy to make sure that it continues to work and is timely transferred to the account for the compensation of utility costs. This can be done by contacting the relevant authorities or through the online portal of social services in your region.Debts to utilities can become a serious problem for citizens, especially those who are in difficult financial conditions. It is important to solve this problem in time and get the necessary support in paying for housing and utilities.

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