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Bankruptcy Challenging the executive inscription of the notary on the loan

Shakhovets Anastasia

Senior lawyer

E-mail

Shakhovets@prikhodko.com.ua

Phone numbers

Lawyer in the practice of bankruptcy of individuals and individual entrepreneurs. Specializes in write-off of bank and MFI loans through the bankruptcy procedure.

Challenging the executive inscription of the notary on the loan

The executive inscription of the notary on the loan is the order of the notary regarding the recovery of certain sums of money from the debtor, carried out on the documents establishing the debt. After the creditor receives the executive writ of the notary, he has 3 years to address it to the representatives of the executive service. The debtor, in turn, also has 3 years to appeal the notary’s executive inscription on the loan. Important: the notary public does not inform the debtor about the execution of the writ of execution. This leads to the fact that the debtor can learn about the writ of execution only at the stage of the initiation of enforcement proceedings. According to the current legislation, it is possible to challenge the executive inscription of a notary only in court. For this, the debtor must file a lawsuit with the court to declare the writ of execution illegal or unenforceable.

Executive inscription of a notary: legal action

The main purpose for which the notary’s executive inscription is used is the possibility of collecting the debtor’s property in favor of the creditor. We are talking about the transfer or return of a person’s property in case of debt. To obtain such an inscription, the creditor must contact a notary with a document confirming the existence of the debt. It can be not only a credit agreement, but also a leasing agreement, mortgage, etc.

Creditors use the executive inscription of a notary public as an executive document. With it, you can apply to a private or state executor for the seizure of the debtor’s accounts or even the alienation of existing property.

For what reason do creditors choose the option of a notary’s executive inscription instead of going to court? There is nothing surprising here: it is on the basis of this option that they can return their funds, while hiding this process from the debtor. In turn, litigation, both for the debtor and for the creditors, is a long process that requires a lot of nerves and time. Thus, the court is the last instance for creditors, which will allow to return the loan debt.

Algorithm of actions for contesting the executive inscription of the notary on the loan

The notary’s executive inscription can be challenged in court on the following grounds:

Disputed nature of the debt

For the legal execution of the writ of execution, the notary must make sure that there is no dispute regarding the debt owed by the creditor and the debtor, as well as the reasonableness of the amount to be collected.

Lack of notarization of the loan agreement

Quite often, notaries use an executive inscription in relation to contracts that are not notarized. Such actions are illegal and subject to appeal.

Collection of penalties and interest after the set deadline for loan repayment

In this regard, it is important to distinguish between the term for loan repayment and the term for presenting a claim. The creditor does not have the right to collect fines, interest on the loan from the debtor after the term of validity specified in the contract has expired. For example, if the period allotted for the return of loan funds is three years, the debtor cannot be charged interest after this period expires. Such collection will be qualified as illegal.

Violation of deadlines for presenting claims from the creditor

According to Ukrainian legislation, everything must happen at a clearly defined time. The creditor is given three years from the moment the requirements for credit obligations arise to obtain a notary’s executive inscription. In most cases, representatives of banks and other financial institutions apply for the execution of a writ of execution on debt claims to the debtor that have already been overdue. In this case, the writ of execution will be issued without complying with the requirements of the current legislation.

If you have encountered the problem of illegal execution of a notary’s executive inscription, you can appeal it. For this, you should seek help from professional lawyers. “PRIKHODKO & PARTNERS” specialists have been successfully working on cases related to cancellation of executive inscriptions on credit agreements for 5 years. The key to our success is an individual approach to each case.

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1 question

Do you have loan debts?

Yes

2 question

The amount of the debt exceeds UAH 180,000?

Yes

3 question

Have your accounts been blocked?

Yes

4 question

Do you need to challenge a notary's writ of execution?

Yes

Is it possible to go through the bankruptcy procedure if the debt is less than 180,000 UAH?

Bankruptcy can be filed regardless of the amount of debt — there are no minimum limits set by law. However, if the amount of debt is less than UAH 180,000, it is usually more advisable to agree on debt restructuring, as bankruptcy may be economically unprofitable.

If I am not in Kyiv, can I cooperate with you?

Yes, we work remotely throughout Ukraine and even with clients abroad! We have many clients from Lviv, Odessa, Dnipro, Kharkiv, Cherkasy and other settlements.

Communication is carried out in any way convenient for you.

Successful cases on the topic: