Removing a garnishment from a salary account in Ukraine today is a fairly common thing, due to the fact that such garnishment is carried out automatically. Such an action can be temporary – when it is blocked for financial monitoring, in which case you can call the bank to remove it, or long-term – in this case, the bank received a decision of the executor for debts. From May 6, 2023, in accordance with the changes in the law, only one account may be available to the debtor with the consent of the executor.
Importantly! Only an amount that cannot exceed two minimum wages for the current year can be withdrawn from such an account.
Arrest of salary account
Most often, such a formal term as “arrest of the salary card” is used, which in turn means nothing more than blocking the account to which the salary is received. The law does not define such a special concept as “salary account”. A separate case is when it is the payment of wages to employees of legal entities. In accordance with this, executive actions regarding the seizure of a salary card are legal until the moment of receiving the appropriate confirmation of the purpose of the account.
During the martial law in Ukraine, rules were established, which have been canceled since May 2023, regarding the seizure of salary cards. Ukrainians were allowed to use the funds from the blocked specified accounts, but the amount of recovery under the executive document should not exceed one hundred thousand hryvnias.
The bank does not violate the law by blocking the salary card, if you have debts to it – it has the right to do so. Even if you believe that this card is a salary card, the bank has no obligation to investigate this matter and will most likely block the card to fulfill its requirements. If you have the opportunity to pay off the debt, do it! If you believe that the bank’s demands are illegal or excessive, it is better to contact qualified lawyers on this matter.
The salary account is blocked
The first step, in the case of a small amount of debt, is the seizure of funds on the debtor’s card by the executor. The executive service, regardless of whether it is a private or a public executive, has the ability to block the debtor’s salary card. Also, the executors do not stop at imposing a seizure on cards, including salary and pension cards, despite the martial law. Arresting the debtor’s cards is the direct responsibility of the executor.
How to unlock?
In order to remove the arrest from the salary account, it is important to consider the specific situation and capabilities of the citizen. No one is safe from the fact that at any moment a salary card seizure can occur, especially when there is debt. In this case, the consequence is the impossibility of withdrawing the earned money. During martial law, restrictions on the seizure of salary cards are reduced and the amount that can be withdrawn is limited to a month (as previously noted). However, there are several ways to remove the arrest:
- Pay off the debt in full.
- Make a statement to the executor and make payments in installments.
- Disputing the reason for the arrest, in particular, the court decision, executive order, etc.
- Enter into a settlement agreement with the creditor.
An application to remove the garnishment from the salary account is submitted in the name of the executor, if you agree to pay the debt or use the established limit. In case of disagreement with the amount of the arrest or its illegality, the application should be submitted to the court.
However, there is no need to worry about the complexity of solving this issue. A team of qualified lawyers of Prykhodko and Partners is always at your service. We are happy to consider your request in order to solve everything in the best way.