The Rada adopted the law on the digitalization of enforcement proceedings: the document was submitted to the President for signature.

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The Verkhovna Rada of Ukraine adopted in the second reading draft law No. 14005, which provides for large-scale digitalization of enforcement proceedings and changes in approaches to the execution of court decisions. The document is currently being sent to the President for signature.

What changes the law

The reform covers a number of laws at once and provides for deep integration of the enforcement service with banks, registries and financial institutions.

In particular:

the distribution of enforcement proceedings is being automated;
the access of enforcers to banking information is being expanded;
for the first time, the collection of electronic money is being regulated;
a mandatory check of debtors in the register is being introduced before any transactions with property.
New rules for debtors

The law significantly strengthens control over debtors’ assets:

banks are required to notify about the opening of accounts;
even funds of third parties who owe a debt to the debtor can be seized;
notaries and other institutions must refuse to alienate the debtor’s property.

At the same time, automatic removal of arrests is introduced after the debt is fully repaid.

Protection of housing and social funds

The document retains important guarantees:

the seizure of a single dwelling is prohibited for debts up to 50 minimum salaries;
separate accounts (social payments, compensations, special accounts) are not subject to arrest;
additional protection is provided for military personnel.

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