Kasyanenko & Partners Law Company experts will help to:
- cancel the enforcement proceedings on the recovery of debts;
- remove the seizure of real estate;
- cancel the process of selling collateral in payment of arrears;
- solve problems with SIS authorities or a private contractor;
- exempt from paying the state fee;
- prevent the debtor from being evicted from their mortgage housing.
What are the possibilities for closing enforcement proceedings in a debt case?
How to cancel the seizure of property imposed by the executive service?
Do not panic, and take rash actions even if the court has ruled against you. Fortunately, modern Ukrainian legislation provides debtors with a large number of options for delaying the process of enforcement proceedings, and collecting property to pay the debt. This, in turn, allows you to extend the deferred period for further credit payments. The postponement period also makes it possible to obtain specific positive results: the removal of property from collateral, repayment of the loan in full or cancellation of part of the debt.
Kasyanenko & Partners Law Company is engaged in complex solutions to problems related to credit debts at the stage of enforcement proceedings. Our lawyers will help you not only release your property from arrest but also close the relevant proceedings, minimize possible losses, etc.
You only need to sign a contract with our company to represent your interests. We will do all the other actions on our own!
Based on the long-term legal practice of our company, we can say with confidence that after delaying the process of debt collection for long enough periods, the bank will certainly make concessions to stop wasting time, and financial resources. If the bank transfers the case to the executive service, it commits an unprofitable action for itself.
How does the process of executive paperwork work?
Let’s imagine that the process of appealing the beginning of the enforcement proceedings in the court of the first instance did not bring the desired results. How to operate the debtor’s next? What consequences should we expect? To begin with, we will try to consider each stage of enforcement proceedings at which the debtor can gaBesidesal time under the current legislation.
After the court decision comes into force, the Bank will receive a writ of execution, and apply it to the SIS at the debtor’s place of residence. After that, the corresponding executive office will be opened, based on the writ of execution, and an application from the banking institution. It is important to note that the Bank has only one year to apply to the SIS after the court decision comes into force.
If a representative of the state Executive service or a private contractor receives an application from the bank, and a writ of execution in time, a decision will be issued within three days to open the executive office or to refuse to open it. After that, the interested party has only 10 days (from the moment when the chief of SIS or the court receives the decision) to appeal the decision of the executive service.
If the SIS or private executor decides to open enforcement proceedings, the resolution will specify the period that is given to the debtor to voluntarily fulfill its credit obligations to the financial institution. If the debtor ignores this information, and does not repay its debt at the specified time, the enforcement service will issue a resolution obliging the debtor to pay an additional enforcement fee for the delay. The enforcement fee is 10 percent of the amount owed. After that, compulsory enforcement proceedings of the court’s decision will be initiated.
In the process of enforcement, a SIS representative or a private contractor has the right to make requests for information about the debtor in various authorities.
These bodies may include:
- Fiscal service. The request is made to find out the level of income of the debtor, the place of work, whether the debtor is engaged in business, the State of his Bank accounts.
- District state administration. To establish the fact of the debtor’s involvement in business activities, his place of residence, etc.
- National police, land administration service, BTI. To establish whether the debtor has vehicles, land plots, agricultural machinery, etc.
- The bodies of registration of acts of civil status. To find out whether the debtor is married. This is done so that the recovery can be carried out on the common property of the couple.
- Internal Affairs. To get information about the registration of a debtor-borrower;
- PF, Employment Center. To establish information about whether the debtor is registered with these authorities.
- Banking institution. To seize the debtor’s financial assets.
After the above information is established, the executive body will seize the property of the debtor, evaluate it, and open a tender for the sale of the property in payment of the debt to the Bank.
Before proceeding to the process of delaying enforcement proceedings, it is necessary to carefully consider further steps, and find legal loopholes to protect own interests. The main thing that the debtor needs to understand is that his actions should not contradict the law. Otherwise, the debtor may be accused of fraud, and abuse of their rights. Now let’s look at the main ways to suspend the activities of SIS, and protect your property from being sold at auction.
Method 1. Sending a complaint to the court
Of course, from the law, filing a complaint to the court is not a reason for suspending enforcement proceedings. But if the court makes a positive decision to suspend the initiated procedure until further consideration of the dispute, the debtor will receive a deferred period of up to 2 years.
Method 2. An appeal against the decision of the state executive to open office
If the complaint was rejected by the higher court, it is still possible to appeal the decision of the Executive service to open the office.
As Kasyanenko & Partners Law Company practice shows, quite often the Bank’s application, and the writ of execution, based on which the enforcement proceedings are opened, are issued incorrectly. These documents may contain errors in the debtor’s full name, place of registration, identification code, etc.
Any inaccuracy or error in the documents may be a reason for refusing to open enforcement proceedings. This gives the debtor the right to appeal the decision of the Executive body to open the office.
A complaint against the actions of the executive body must be submitted to the court that issued the relevant decision. Consideration of the complaint may take about a month, and a half, plus additional time to make changes to the writ of execution, and transfer it to the SIS. This method can win the debtor from 3 to 6 months.
Method 3. Filing a complaint to the court about the actions or omissions of a representative of the state executive service or a private contractor
Collection for repayment of the debt to the bank is carried out in a strictly defined order: the first, in respect of the debtor’s financial resources; if they are not enough on movable property;, and only after that on real estate (land, housing).
Often, state performers neglect these Articles of the law, and, without paying attention to the debtor’s money or car, start collecting real estate. This is a gross violation of the law, which allows you to appeal the actions of SIS, and win up to a year.
Method 4. Preparation of an application for installment payments for debt repayment
Following Article 35 of the Law On enforcement proceedings, the state executive (on own initiative or the initiative of the parties), and the parties themselves can apply to the court that issued the relevant decision on the case, to grant a delay or installment of enforcement proceedings or change the conditions for its implementation.
The debtor has the right to apply to the court to get an installment plan for six months or a year, or to recover real estate, and other assets belonging to the borrower. Although such an appeal is also not a significant reason for suspending enforcement proceedings, most often the courts make this decision to prevent the formation of any overlaps, and inconsistencies.
That is, if the court makes a positive decision for the debtor, the performer can get into a very strange situation when the debtor’s property has already been sold, and the court has granted him an installment plan. Such a request will help to win about 2 months, if the court grants the request, then even more.
Method 5. Filing a claim by a third party for recognition of ownership of property that the state executor has seized
This method is an excellent option if you previously signed a contract of sale but the ownership was not properly registered in the BTI. The buyer has the right to file a claim to the court for recognition as the owner of the property that the Executive service has seized. This will force the court to suspend enforcement proceedings until the end of the court proceedings. Even if the claim of a third party is not satisfied, this will help to win from 2 months to a year for the debtor.
Method 6. Appeal against the results or process of evaluating the property to be sold
The property is assessed by the executive body based on current market prices. However, there are circumstances when the property can only be evaluated using the services of a qualified appraiser. For example, the participation of an appraiser is mandatory if the recovery is in respect of real estate or vehicles.
If the parties to the case do not agree with the results of the property assessment, they can submit their objections to the state executor. After that, the state executor will obligatorily appoint a review of the property assessment. If the review is unsatisfactory for the parties, they have the right to submit their objections to the court within 10 days. This period begins from the moment of receiving notification of the review results.
Based on the above information, and the experience of our experts in this legal field, we can say with confidence that this method can help to win up to 8 months of additional time. Since the contractor will not have documents confirming the value of the property, it will not be able to start bidding, and, accordingly, sell this property.
Method 7. Appeal against the results of auctions organized by the executive service
The procedure for the sale of collateral is regulated by the Decree of the Cabinet of Ministers dated 22.12.1997 No. 1448.
The provisions of this decree indicate that the trade may be invalidated in the course of legal proceedings. Initiate legal proceedings in any of the bidders, the bank or the debtor.
If we take into account Kasyanenko & Partners Law Company practice, we can say with confidence that the executive service most often allows two main violations: incorrect from the law, bidding, errors in providing information about upcoming auctions.
Besides to the above, special attention should also be paid to the Protocol that is conducted during the auction. This Protocol must contain information about the initial, and final price of the property, the bids made by the participants, and the winner of the auction, as well as information about it. The Protocol must be signed by the bidder, and the winner (their representative), and submitted to the bid organizer no later than three days after their completion.
If the winner of the auction (the person who offered the highest price for the property) does not make full payment for their purchase within 10 days, then the auction must be considered invalid, and their results invalid.
That is, if any violations are noticed at the stage of selling the debtor’s property, the borrower has the right to appeal the results of the auction in court. to get a positive court decision, you need to prepare weighty arguments in defense of your point of view.
If the auction was held following the current legislation, then you will not be able to find significant arguments for their cancellation. If the court makes a decision canceling the sale of the property, the debtor will receive at its disposal another delay for repayment of non-payment on the loan.
This method is the last opportunity to save the property from sale for a while. That is why we recommend contacting professional lawyers in advance, so that your actions, and actions are as effective as possible to obtain a satisfactory outcome of the case.
Of course, the best option is not to delay until the auction stage but to use other methods described above to get additional time to pay debts. Keep in mind that legal settlement actions are already very limited from the start of trading. That is why it is better to seek legal assistance in time. Kasyanenko & Partners Law Company experts will do everything possible to help you save his mortgaged property from the sale. Our lawyers, and attorneys are equipped with the most effective methods for minimizing credit debts, and saving property from foreclosure. Among them: removal of property from collateral obligations, sale of the debtor’s property on favorable terms, delaying property, and debt disputes.
Note that with a competent approach to the case, the debtor can not only get rid of their credit obligations but even earn on the sale of property! The current legislation provides for some procedures that allow the debtor to sell property that costs less than what is necessary to repay the entire debt, and at the same time achieve write-off of the credit balance. If you are interested in information about these procedures, please contact our company using the contacts listed on the website.
As a result, if you do not want to give banking institution the property that you have earned with hard work, then is sure to use professional legal assistance. Our lawyers fight every day for the interests, and collateral of debtors. They are helped by considerable experience in supporting cases in this legal field, the ability to work with non-standard situations, and find the most effective, and original ways to solve certain problems related to loan debts.