The Verkhovna Rada has banned debtors from selling property: who will be subject to restrictions

The Verkhovna Rada of Ukraine supported in the first reading draft law No. 14005, which provides for significant changes in the enforcement process. These changes are aimed at strengthening control over the property of debtors and simplifying the debt collection process.

One of the key innovations is the prohibition on the alienation of property by individuals with outstanding debts. Debtors will not have the right to sell, give away, or pledge both movable and immovable property until the debt is fully repaid.

The mechanism of action of the new norms

The draft law proposes the integration of the automated enforcement process system with government agencies, banking institutions, and financial entities. The single debtors register will receive expanded functionality and will interact with other state registers.

The system will automatically check the presence of an individual in the debtors register when attempting to perform a real estate transaction. And after receiving funds from the debtor, it will automatically generate a notification of the closure of the enforcement proceedings.

The position of lawyers

Lawyers believe that the draft law is aimed at bringing Ukrainian legislation in line with European standards and adapting to modern realities. The initiative is expected to simplify the enforcement of court decisions and improve the efficiency of the enforcement process.

Lawyers believe that the new restrictions on the realization of debtors' property will help regulate communal debts and avoid panic among citizens.

The Verkhovna Rada has adopted a law on enforcement proceedings, which provides for restrictions on the alienation of debtors' property and increased control over their finances. The changes are aimed at simplifying debt collection procedures and aligning Ukrainian legislation with European standards.