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.

Debt write-off for credit / microloans

Difficult economic conditions, martial law, a decrease in the standard of living of the population, all these and other factors force banking institutions to make concessions to their debtors. Among other things, we are talking about writing off the loan debt. Much depends, for example, directly on the amount of debt.

In what situations is it possible to write off the loan debt?

The bank can write off part or all of the loan debt. In fact, this happens because banking institutions do not have real leverage over debtors. For example, in order to collect a loan from a debtor, bank employees must take him to court. This process is accompanied by payment of lawyers’ services, payment of court fees, etc. A bank loan can be written off in the following cases:

The statute of limitations for the loan has expired (three or more years).
The debtor has no property that can be condemned.
The debtor refused to sign the debt restructuring agreement.
The debt is subject to the moratorium.

We are talking, first of all, about consumer loans. With banking institutions, it is not only possible, but also necessary to negotiate the closing of a problem loan at the same time as reducing the debt on the terms of the debtor. And, at the same time, it does not matter at all how long the delay in payments is in question: a month, five months or more. Negotiations will allow writing off from 30 to 90% of the loan amount. Everything depends on the extent to which the debtor will be able to protect his rights. Ideally, you should contact specialists in this field.

Important: writing off loan debts is beneficial for both parties. There is nothing strange here. The benefit for the borrower is that he is released from the obligation to return the funds, and the lender no longer exerts any influence on the debtor with the demand to return the money. Regarding the benefit of the borrower, we will discuss this issue in more detail. Working with bad debtors has a negative impact on the banking institution. Not only reporting suffers, but also the financial condition of the entire organization. Investors may turn away from such a bank, as a result, reputation and capital investment decrease. Such negative factors can provoke complete bankruptcy.

Private credit companies can write off the loan debt in full for the following reasons:

Compulsory (according to the decision of the executive service).
Voluntarily (at the discretion of the banking institution).

Debt write-offs are usually carried out due to the death of the debtor, long-term imprisonment, partial or complete loss of work capacity by the borrower. In this case, it is less problematic and much more profitable to resolve the issue by using insurance.

Peculiarities of writing off debt on a loan / microloan under martial law

Debt write-off under martial law is possible under the following conditions:

As of February 23, 2022, the borrower had no outstanding loan debts.
The loan was obtained for the construction, reconstruction or purchase of property that was damaged or destroyed due to military action.
The destroyed home is the family’s only place of residence.

To confirm the fulfillment of the conditions, you should provide the bank with a package of necessary documents. In this case, the creditor has the right to receive compensation from the state.

Loan debt can be written off on the basis of “forgiveness”:

Through an agreement with a banking institution

The debtor signs a loan forgiveness agreement with the bank. At the same time, the debtor must pay military duty and personal income tax (1.5% and 18%, respectively). These interests are calculated on the amount to be written off.

This option is more beneficial not to the debtor, but to the bank. This is due to the fact that the debtor will solve the problem of debt, however, at the same time, he will be involved in new tax obligations.

Loan forgiveness by assignment

Banks can transfer bad loans to collectors, that is, to factoring companies. At the same time, the debtor can agree with the bank on the assignment of the debt to a trustee. How does it work? Of course, banks cannot directly sell a loan to an individual, so this operation is carried out through an intermediary, that is, the same factoring companies. Loan forgiveness by assignment is not prohibited by law.

If you are unable to pay the loan debt, the specialists of “PRIKHODKO & PARTNERS” will help you prepare all the necessary documents for writing off the loan debt or file a bankruptcy procedure. We have many years of practical experience in this field. Sign up for a consultation with debt relief lawyers!

Calculate the cost of services

1 question

Do you have a loan from a bank or MFI?

Yes

2 question

Is the loan amount more than UAH 180,000?

Yes

3 question

Do you need to write off your loan debt?

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: