In Ukraine, it is proposed to allow the write-off of credit debts of military personnel and their families

The Verkhovna Rada has registered draft law No. 15458, which provides for a new mechanism for settling overdue debts of military personnel, certain categories of civilians and their family members.

The document is intended to eliminate tax obstacles to voluntary forgiveness of credit debts and provide banks and other lenders with a legal opportunity to fully or partially write off debts on consumer loans.

The changes will apply, in particular, to military personnel, civilians deprived of personal liberty or missing persons, their family members and persons with disabilities.

Banks want to be allowed to write off up to 100% of debt

The draft law proposes to amend the Law of Ukraine “On Consumer Lending”.

Banks and other lenders will receive a clearly defined right to fully — up to 100% — or partially forgive debts on consumer loans of certain categories of citizens.

To do this, a family member, heir, or official representative of a serviceman or civilian will be able to contact the appropriate credit institution.

Thus, it is about creating a legislative mechanism that will allow creditors to make decisions on full or partial debt forgiveness.

No taxes will have to be paid for a written-off loan

Another important block of the bill concerns taxation.

It is proposed to provide that the amount of canceled debt for protected categories of citizens will not be considered an additional benefit.

Accordingly, in the event of writing off such debt, the borrower will not have an obligation to pay personal income tax and military duty on the amount of forgiven debt.

The changes should eliminate the situation where loan forgiveness itself can create new tax liabilities for a person.

Tax changes are also provided for banks

Separate guarantees are offered for financial institutions.

Banks and other creditors plan to be exempted from the need to increase the financial result before taxation by the amount of used reserves in the event of forgiveness of the corresponding credit debt.

Thus, legislators want to remove tax factors that may deter credit institutions from writing off debts.

What will happen to enforcement proceedings

The draft law also provides for amendments to the Law of Ukraine “On Enforcement Proceedings”.

In the event of settlement and forgiveness of debt, the relevant enforcement proceedings are proposed to be completed, including when the collection was carried out on the basis of a court decision.

For protected categories of citizens, exemption from paying the enforcement fee is also provided.

The initiative to write off debts was raised at the beginning of the year

The issue of legislative regulation of credit obligations of military personnel and their families was previously raised by the Association of Ukrainian Corporate Advisors.

In February 2026, the Association submitted a corresponding initiative to the government, the National Bank, the Ministry of Veterans Affairs, and the relevant committee of the Verkhovna Rada.

In particular, it was proposed to create a mechanism that would allow creditors to forgive up to 100% of consumer loan debt to the families of military personnel who died, died, went missing, or are in captivity.

Currently, draft law No. 15458 is registered in the Verkhovna Rada and must undergo the prescribed legislative procedure for consideration.