Seizure of funds
One of the most common ways to enforce a court decision is to seize the debtor’s funds. Such a measure allows for the temporary blocking of cash funds and funds in bank accounts for the purpose of their subsequent write-off in favor of the debt collector.
In accordance with the legislation of Ukraine, a decision on arrest can be issued by the state executive within the framework of executive proceedings. This decision leads to the introduction of restrictions on any financial transactions from accounts or cash.
In practice, the seizure of funds often puts the debtor in a difficult position, prohibiting even the purchase of necessary things or the use of funds for basic life needs. The law provides for the possibility of setting aside a separate account in which you can keep funds that do not exceed two minimum wages every month. These funds can be used by the debtor at his own discretion to meet urgent needs.
The right of the debtor to remove the attachment
According to the Law of Ukraine “On Enforcement Proceedings”, the debtor has the right to apply to the court with a claim to remove the seizure from his property or funds, if he believes that such seizure was imposed illegally. It is possible to remove the seizure from the funds by filing an appropriate lawsuit in court.
A statement of claim for the removal of seizure from funds
Such a statement must contain the following information:
- Name of the court to which the claim is filed;
- General information about the participants in the case – the plaintiff (debtor), the defendant (executor) and a third party (collector).
- Information about the very fact of the seizure – in the form of a link to the relevant decree of the executor or its details.
- Details of the seized account/funds – account number, bank details, etc.
- Justification of claims;
- A list of evidence supporting the plaintiff’s arguments – copies of documents, certificates, etc.
- Details of confirmation of payment of the court fee.
- List of attachments to the application.
- Signature of the claimant. Date of submission.
Justification of claims
In the statement of claim for the removal of the seizure of funds, the plaintiff must substantiate his claims.
He can refer to the following circumstances:
- Court decision on removal of seizure from funds;
- Illegality of seizure of funds;
- Impossibility of the debtor to fulfill his obligations without using the seized funds.
Documents and evidence that may be needed
Evidence attached to the claim may include:
- A copy of the decision on the seizure of funds – to confirm the fact of seizure.
- Copies of documents confirming the claimant’s rights to funds;
- Certificate from the bank about the status of the account and restrictions imposed on it.
- Copies of documents confirming the inability of the debtor to fulfill his obligations without using the seized funds.
- Evidence of the source of funds in the account (for example, a certificate of income).
- Documents confirming the difficult financial situation of the debtor (if necessary).
- Other evidence to support the debtor’s arguments about the illegality or excessiveness of the applied seizure.
An application to remove the seizure of funds is submitted to the court in the place where the execution document is being executed. This means that a person who wants to cancel the arrest on his own funds must apply to the court in the territorial division where the main office of the executor is located and the enforcement process takes place. This step in the procedure is important, because the court at the place of execution has the competence to consider issues related to enforcement proceedings.
The court considers the claim for the removal of the seizure of funds. In the event that the claims are satisfied, the court issues a decision on the removal of the seizure of funds. This resolution is mandatory for all state bodies, local self-government bodies, as well as individuals and legal entities.
Sometimes there are situations with seizure of funds. However, you can count on the support of the Prykhodko and Partners law firm. Our lawyers will help you defend your interests in court and regain the ability to manage your funds as soon as possible. Get professional legal help!