No paperwork, no delays: how digitization will impact debt collection
16 April 10:15
Following the adoption of the highly publicized Bill No. 14005 on the digitization of enforcement proceedings, the public has been alarmed by statements regarding “automatic debt collection”; however, these fears are largely exaggerated.
This was stated by Oksana Rusetska, chair of the Council of Private Enforcement Officers of Ukraine, in an interview with “Ukrainian Radio,” reports "Komersant Ukrainian".
She explained that the law, which has been sent to the president for signature, does not introduce new harsh mechanisms to pressure debtors, but merely simplifies procedures through digitization.
According to her, most of the sensational statements in the media about new restrictions do not correspond to reality.
As a reminder, on April 7, the Verkhovna Rada adopted European integration bill No. 14005 on simplifying enforcement proceedings through digitization.
What is changing
Rusetska emphasized that the key rules, particularly regarding entry into the Unified Register of Debtors, remain unchanged and have been in effect since 2017—only upon the existence of a court decision. Instead, the main innovation is automatic removal from the registry after the debt is repaid, which should speed up citizens’ access to their property. However, this simplified procedure will apply only to relatively small amounts. The law also strengthens the protection of primary residences by raising the threshold for their potential seizure.
The expert noted that the law on simplifying enforcement proceedings through digitalization does not provide for any full automation of the debt collection process.
“In fact, the Unified Register of Debtors has been in operation in Ukraine since 2017. And the biggest myth circulating around this bill after its adoption was that people would now allegedly be automatically entered into this register. However, it is important to understand: this mechanism has been in place for many years. And since 2017, every individual or legal entity against whom enforcement proceedings have been initiated is automatically entered into the debtors’ registry after the relevant procedural document is issued by the enforcement officer—whether private or state. As of today, this procedure remains unchanged. That is, regardless of the amount of the debt—whether it is a fine for an administrative offense (such as a traffic violation or illegal parking), utility bill arrears, or a loan—if enforcement proceedings are initiated, the individual is entered into the debtors’ registry. From that moment on, certain restrictions apply, particularly regarding the disposal of property. For example, a person cannot independently sell a car or dispose of real estate—whether by selling or gifting it—as long as there are outstanding debt obligations. Once the debt under enforcement proceedings is fully repaid and the court decision is enforced, the proceedings are closed, and the person can once again freely dispose of their property,” Rusetska clarified.
She emphasized that “until there is a court order or court decision, including regarding utility bill arrears, no one can enter a person into the debtors’ registry.
“It is impossible to end up there ‘just like that,’ even if you really wanted to,” Rusetska emphasized.
It should be noted that as of early March 2026, over 9.5 million debts are recorded in the Unified Register of Debtors. Over the course of a year, the number of debts increased by more than half a million. 21% of all debts relate to fines for traffic violations. The largest number of debts is concentrated in Dnipropetrovsk, Kharkiv, and Kyiv regions.
