Attorney
Specialist in bankruptcy of individuals and legal entities. Provides legal support in bankruptcy procedures for individuals, private limited liability companies, legal entities, as well as closing executive proceedings, concluding restructuring and settlement agreements with financial institutions
Restructuring debt on a mortgage loan in foreign currency
Mortgage loan restructuring is increasingly of interest to borrowers who, due to financial difficulties, find themselves in a position that does not allow them to repay a loan taken to purchase a home or secured by property in full. Especially if this property is the only housing of the debtor and his family, which jeopardizes free living in it due to the possibility of confiscation or sale to pay off the debt to the bank.

The restructuring procedure is provided for by the Code of Ukraine on Bankruptcy Procedures that came into force in 2019. It allows the debtor, within the framework of legal proceedings, to restore its solvency by agreeing with the creditor on the amount of partial repayment of the loan with a guarantee that the debtor will retain housing secured by collateral. The balance of the debt, which is not included in the total amount of the restructuring, as a result, is recognized as forgiven by a court decision.
To do this, the debtor must apply to the economic court with a statement of insolvency, adding to it a draft restructuring plan.
The draft plan specifies:
- Circumstances leading to insolvency
- Claims of creditors with amounts of debts
- The amount of the debtor’s income as of the preparation of the plan and the income that the debtor expects to receive in the restructuring process
- The amount that will be left monthly for the needs of the debtor
- The amount that will be allocated monthly to pay off the claims of creditors
In case of compliance with all legal requirements, the judge in the preparatory hearing opens the proceedings and begins the procedure. Creditor’s claims arising from a loan in foreign currency shall be determined in national currency at the rate established by the National Bank of Ukraine on the date of commencement of proceedings on the case.
In the restructuring procedure for mortgage-backed consumer loans, a restructuring manager is appointed who, as an intermediary, agrees with the creditor a restructuring plan within 120 days, which will allow the debtor to further restore its solvency within a certain period. For foreign currency loans received for the purchase of single housing, the restructuring procedure takes place without the participation of such a manager, the plan is approved by the court and supported by the secured creditor within the stated requirements. The procedure and conditions of the plan may be changed by the debtor and the creditor with the consent of the parties. After the plan is approved, the debtor proceeds to its implementation.
The term of restructuring according to the law is up to 5 years for consumer loans and 10 years for loans issued for the purchase of housing. Forgiveness of the balance of the debt is made after the repayment of the amount established by the plan.
If you have a debt on a mortgage loan, but as of today, due to insufficient income, you cannot pay it, then the restructuring procedure is just for you. Leave an application on our website, the lawyers of Prikhodko & Partners will provide you with qualified advice and support in this case.
Calculate the cost of services
1 question
Do you need to restructure your foreign currency mortgage debt?
2 question
Is the mortgage overdue for more than 2 months?
3 question
Was the loan issued for the purchase of a first home?
4 question
Has your property been seized?
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.
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