The Verkhovna Rada passed a law on debtors: how the only housing can be taken away

The Parliament of Ukraine has adopted a bill that could significantly impact the country's debtors, including the possibility of losing their housing. Law No. 14005 provides for the digital transformation of the enforcement proceedings system, which is intended to simplify debt collection, but experts warn of potential negative consequences.According to the new law, a person listed in the Debtors Register loses the right to dispose of their property, including housing. From now on, such a person will not be able to sell, gift, or mortgage real estate until the debt is repaid. However, after the debt is paid, the individual is automatically removed from the debtors register.Parliamentarians expressed some concerns regarding the bill, pointing out that some of its provisions may restrict the rights of debtors in managing their property, which may not necessarily be related to the digitalization of enforcement proceedings. The adoption of this law has become one of the obligations to the European Union, but due to Ukraine's delay in approving the document, the country may receive less funding from the fifth tranche than planned.