Loan Restructuring at PUMB: How to Repay (Write Off) ?

The war has significantly impacted the lives of many Ukrainians: rising prices, loss of housing, relocation, and other factors have led people to rely more heavily on loans. However, due to the above-mentioned crisis factors, borrowers are not always able to fulfill their obligations. Restructuring may become a solution. In this article, we will examine loan restructuring at PUMB Bank – how to repay (write off) a loan at PUMB?

In What Cases Can Restructuring Help?

Loan restructuring is a service provided by banks to assist borrowers. PUMB Bank is no exception. The procedure is based on the modification of loan terms:

• Reduction of monthly loan payments.
• Revision of loan terms.
• Granting payment deferrals.
• Changes to the repayment schedule.
• Credit holidays, etc.

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How does it work? The borrower submits a request to the bank. After reviewing the application, the bank makes a decision. If the decision is positive, debt restructuring begins. For the borrower, this means improved conditions for fulfilling loan obligations.

Among the main aspects of restructuring: mutual agreement of the parties; documentation formalization; interest rate adjustment; timely fulfillment of loan obligations.

The borrower and representatives of PUMB Bank must reach an agreement regarding changes to the loan terms.

The initiation of the restructuring procedure is accompanied by the execution of new documents that formalize changes to the loan terms.

The bank may, at its discretion, reduce, increase, or leave the interest rate unchanged.

In most cases, the bank will accommodate a borrower who has previously made timely monthly payments.

Is It Possible to Fully Write Off a Loan?

Full loan write-off is possible only in exceptional cases. For example: entering into a settlement agreement with the bank; having part of the charges declared unlawful in court; applying the personal bankruptcy procedure in accordance with the Bankruptcy Code of Ukraine.

During negotiations, the bank may agree to partially write off the debt (usually penalties or part of the interest) provided that an agreed amount is paid in a lump sum.

Borrower’s Action Algorithm

1. Analysis of the loan agreement terms.
2. Preparation of documents confirming financial hardship.
3. Submission of a written application to the bank for restructuring.
4. Receiving a written response.
5. Careful review of the proposed terms.

You should not ignore your debt or avoid communication with the bank. This may result in the case being transferred to collection agencies or the initiation of enforcement proceedings.

To achieve the desired result, we recommend seeking assistance from a lawyer. Attorneys at “Prikhodko and Partners” emphasize that debt should not be ignored and communication with the bank should not be avoided.

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Banks are usually interested in recovering at least part of the funds, so they are willing to consider applications from clients facing difficult financial circumstances. The key is to act promptly and formally apply to the financial institution.

The Role of a Lawyer in Restructuring

A lawyer analyzes the loan agreement, verifies the legality of charges, prepares a well-founded application to the bank, and accompanies negotiations. In case of a court dispute, the specialist forms a legal position and protects the client’s interests in court.

Legal assistance is especially relevant when dealing with large banks such as PUMB, where loan agreements contain complex financial conditions and significant penalty clauses.

A lawyer may also initiate personal bankruptcy proceedings, which allow debts to be legally settled and, in certain cases, written off after the restructuring plan is fulfilled.

Do you still have questions? We invite you to a preliminary consultation in a format convenient for you (offline or online)! To calculate the cost of legal services for debt restructuring at PUMB, please fill out the form below.