Debtors are not to be envied: seizure of funds is automated, and enforcement proceedings are digitalized
8 May 10:56
The Committee on Legal Policy recommended that the Verkhovna Rada of Ukraine adopt in the second reading and as a whole the government’s draft Law of Ukraine “On Amendments to Certain Laws of Ukraine on Digitalization of Enforcement Proceedings” (No. 9363). This was announced by the government’s representative in parliament, Taras Melnychuk, "Komersant Ukrainian" reports.
The bill will help to modernize and digitalize some stages of enforcement proceedings. It will also optimize the processes of foreclosure on the debtor’s property.
What is planned to be changed
The draft law proposed for consideration in the Sejm, in particular, provides for
– expanding the functionality of the enforcement system, in particular, with regard to the interaction of bailiffs with state authorities, banks, other financial institutions, non-bank payment service providers, etc., as well as mandatory connection of banks and other financial institutions to information interaction
– introduction of interaction between the Unified Register of Debtors (as a component of the system) and other registers in order to prevent alienation of property by the debtor;
– the possibility of generating a certificate on the presence/absence of information about a person in the Unified Register of Debtors, including a qualified electronic signature of the system administrator, in the form established by the Ministry of Justice of Ukraine;
– determining the procedure for foreclosure on the debtor’s funds held on deposit accounts;
– automated seizure of funds, introduction of automated interaction between the system and the securities depository system, etc.
Why the adoption of this law is important
Commenting on the adoption of the law in the first reading, Andriy Haichenko, Deputy Minister of Justice of Ukraine for the Enforcement Service, explained that after the law comes into force, citizens will not need to go to the bailiff to request the lifting of the restriction after paying all the money.
“Upon a signal from the payment system, the restrictions will be lifted automatically. The big advantage of this case is that it eliminates the grounds for extortion of bribes from people,” the official emphasized.
In addition, according to Andriy Haichenko, “finally, the scheme popular among professional child support evaders (and not only them) – opening new bank accounts after the arrest of the previous ones – will be closed.”
The official also noted that the adoption of the law guarantees all participants in legal relations the effectiveness of the principle that the law is one for all, as it obliges all financial institutions to connect to the automated system.
