A separate place in our wartime practice is occupied by problems with debt obligations. Now the country's economy is going through perhaps the most difficult time of independent history. Businesses are closing, people are being laid off, and the prospect that was built on the stability of recent years is clouded. But, unfortunately, this is not a reason for the creditor to forgive the debt.

The process for the return of the creditor's money, whether it be a banking institution or a collection company, has been working for many years according to a well-honed and efficient scheme. For the most part, the ruthless hand of the lender reaches out to the most honest and decent people, because, having no criminal intent or fraudulent thoughts, they do not intend to hide.

Having a choice, (i) seek advice from a lawyer and try to convey to the creditor at the "same level" an understanding of the legal grounds for suspension or deferral of payment and (ii) try to solve the problem on your own by signing, at first glance, the only possible restructuring documents - risks should be taken into account debtor, the opportunity to worsen their legal position, only to increase debts and lose personal property.

Strategy

The strategy and tools you choose to deal with this category of problem will be important in gathering the package. Why do you need a package of documents? Once the war is over, the country will prolong its economic life and activity will begin to grow. Reliably, such activities will be aimed at reducing the accounts payable of banking or collection institutions. The simplest procedure would be to recognize the debt through the court, given the new realities of the exchange rate, it is possible to revise the principal amount of the debt.

Having prepared in advance for such a development of events, having on hand a package of documents with official and legally well-formed requests to the lender during martial law, there is a high probability of remaining protected and returning in the future only those funds that really owe under the contract.

Similar problems in the economic and legal sphere in Ukraine already took place in 2008 and 2014 and created many problems for the parties to the loan agreement. Protecting the interests of debtors, our specialists have built a full-fledged defense strategy. Getting acquainted with the practices and results of the chosen solution of current clients, we are obliged to warn you against frequent mistakes and recommend the approach that we use ourselves:

Action plan

1. Find the loan agreement on the basis of which the debt arose. If you cannot find or do not have access to it, please send a request to the institution issuing the loan to issue a duplicate or a certified copy of your Loan Agreement and its Annexes.
2. Carefully reread such an agreement regarding the legal grounds for the termination of payments of regular payments. It is important to know whether your contract has clauses indicating force majeure grounds and what needs to be done in such cases.
3. Send a request to the institution that issued you a loan with a formal request to suspend the accrual of interest (fines, penalties, etc.) subject to the relevant clause of the agreement. Send a registered letter, with a mark of receipt.

Best regards,
Смиковська І.П.