New Debt Law: Can Housing Be Taken Away for Utility Payments
The Verkhovna Rada has approved bill No. 14005 on debt collection, which has raised concerns about the possible seizure of housing for utility debts. However, expert Olha Brus dispelled these fears, emphasizing that the bill does not change the rules for seizing housing.
According to part 7 of Article 48 of the Law of Ukraine 'On Enforcement Proceedings', seizure of a single housing is possible only if the debt exceeds 20 minimum wages. The critical amount for the seizure of housing is 160,000 UAH. Thus, the risks of losing housing due to utility debts remain limited.
Objective of Bill No. 14005
Bill No. 14005 aims to streamline enforcement proceedings through digitalization of the process. If adopted, the seizure of funds, blocking of cards or electronic wallets will occur automatically after opening enforcement proceedings. This means that the debt collection procedure will become more efficient but will not lead to changes in the rules for seizing housing.
Olha Brus, expert
Thus, citizens can be assured that the loss of housing due to utility debts in Ukraine remains regulated and depends on specific financial circumstances.
Bill No. 14005, while simplifying the debt collection process, does not change the existing norms that protect citizens from losing their only housing due to utility debts. This is important for ensuring social stability, as the population often faces financial difficulties. Public discussion and clarification of legislative changes can help raise citizens' awareness of their rights and obligations in the area of debt obligations.