Unlocking debtors’ accounts

Grounds for blocking accounts

In Ukraine, there are various grounds on which courts can seize citizens’ bank accounts. Most often, the seizure of accounts occurs due to non-payment of debts, enforcement of court decisions, enforcement of a person’s obligations or as part of an investigation. The initiators of the seizure of accounts are the authorized parties with appropriate petitions.

Ability to unlock accounts

However, the current legislation provides for the possibility of removing the seizure from accounts, in particular from card accounts of citizens. There are certain grounds and conditions under which the arrest can be lifted. For example, after debt repayment, execution of a court decision or completion of the investigation that led to the arrest.

Restrictions for debtors during martial law

Changes to the legislation, which came into force in May 2023, regulate the use of funds by debtors during martial law. Previously, debtors could freely dispose of money in their accounts, if their debt did not exceed 100,000 hryvnias. However, now, according to the new law, the amount that a debtor can dispose of every month is limited to two minimum wages established at the beginning of the current year. In 2024, this amount is 14,200 hryvnias.

Importantly! This amount is fixed and does not depend on the number of executive proceedings or the size of the debt. In addition, unused funds are not carried over to the next month, that is, the limit applies monthly.

Thus, the law limits the amount of funds that the debtor can dispose of every month, regardless of the size of the debt or the number of enforcement proceedings.

Restrictions on the use of accounts

According to the requirements of the law, if the debtor has several current accounts in different banks and one or more of them have seized funds, then only one of these accounts must be chosen to carry out expenses permitted by law. It is not allowed to spend money from other accounts, even if they also have seized funds.

This requirement to use only one account designated for expenses is established to simplify the control and administration of this process by executors.

Importantly! Special purpose accounts (for alimony, salaries, etc.) cannot be garnished.

Steps for blocking an account

• When blocking your bank account, the first step is to contact the financial institution where the account was opened.
• Representatives of the bank or microfinance organization must explain to you the reason for blocking the account and inform you about the necessary actions to unblock it.

Importantly! Do not forget that you have the opportunity to independently check whether you are in the Unified Register of Debtors.

This will help to find out whether the blocking of the account is not related to the existence of debts that could be the basis for the imposition of a seizure or other restrictions.

Grounds for unblocking accounts

The issue of unblocking seized accounts is regulated by the Law of Ukraine “On Enforcement Proceedings”, in particular Article 59, which defines the grounds for removing the seizure from the debtor’s property in whole or in part by the executor. In other cases, the decision to remove the arrest is made by the court.

Legal assistance

The law firm “Prykhodko and Partners” realizes that the process of unblocking bank accounts can be complicated and require professional help, so the company’s lawyers will make every effort to quickly solve your problem.

You can turn to them for advice and get prompt assistance in disputes with banks, executive services or during court proceedings regarding the removal of arrests and blocking of your accounts.