How to legally get rid of loans in Ukraine – how can you legally write off debts?

Credit obligations are popular in any country, including our state, because it is a good tool to get the necessary funds to implement the plans and meet one's own needs. Before all this, in today's realities, with the full-scale invasion of the Russian Federation on the territory of Ukraine, many of our citizens have lost their main source of income, as a result of which lending has become even more relevant. In this article, we will consider how to legally get rid of credit obligations in accordance with the law and whether it is possible to write off debts in Ukraine.

What are the methods of writing off debt obligations in Ukraine today?

1. insurance;
2. bankruptcy;
3. incapacity or disability of a person;
4. expiration of the debt statute of limitations;
5. death of the borrower.

We will describe in more detail each of the debt write-off methods:

• Insurance. Many financial institutions require the conclusion of an insurance contract as a condition for receiving a large amount of credit, regardless of the purpose of obtaining such funds (such as the purchase of a home or car, property mortgage, life insurance, etc.). In this case, the insurance provides an additional level of protection in the event of job loss, accident, financial hardship or death. However, this right can be exercised with the occurrence of an insurance event, according to which the insurance company can reimburse a certain part or the entire balance of the debt, which will help the client to settle his obligations to creditors.
• Bankruptcy. A long-term procedure, which involves a mandatory appeal to the court in order to declare a natural or legal person bankrupt and allows to cancel their loan obligations. However, the successful recognition of a person as a bankrupt is not a 100% guarantee for the complete cancellation of debts, because depending on the situation, the court can simply grant a postponement for the payment of payments or write off the interest for the use of credit funds, but leave the body of the loan itself.
• Disability or disability of a person. Suffering an injury or disability that prevents a person from being able to work is another way to write off debt. For this, it is necessary to have documentary proof of disability of 1 or 2 groups or incapacity of a person. To obtain such documents, it is necessary to contact a family doctor. Then you can file a claim with the court in which you ask for the write-off of your loan debts.
• Expiration of the debt statute of limitations. According to the CCU, the general limitation period is 3 years. During this period, a person has the right to go to court to protect his rights. However, if the borrower has not paid the loan for three or more years, his debt can be legitimately canceled after the expiration of the statute of limitations.
• Death of the borrower. If the borrower dies, the heirs inherit not only the property of the deceased person, but also his debts. In order to avoid repayment of these obligations, the heir has the opportunity to refuse the inheritance. However, even if you decide to accept the inheritance, in this case the debts are repaid only at the expense of the inherited property. This means that the heir is not obliged to use his own funds to cover the debts. In addition, the bank has a limited period for demanding repayment of the debt, namely 6 months, starting from the day when it learned about the borrower's death.

If you want to write off debts due to credit obligations and do not know all the legal nuances of this procedure, contact the Prikhodko and Partners law office. We have considerable experience in the field of regulation of credit obligations in accordance with current Ukrainian legislation. And that is why our team of specialists will provide you with qualified advice and answer all questions that will arise in the process of cooperation on writing off loans in Ukraine. Get in touch!