Publications Legal mechanisms to protect the rights of borrowers (debtors)

Many would agree that in a climate of political instability, of economic crisis, it is very difficult to repay credit debts. The situation is fuelled by the sharp spike in the value of the dollar over the past seven to eight years, the devaluation of the national currency - the hryvna - and the rapid impoverishment of the population. In general, Ukraine’s national legislation was on the side of debtors and, if the laws were properly applied, it was possible to expect substantial relief from the burden of paying credit payments.

First of all, if you are confident that you will not be able to properly fulfill your obligations under the credit agreement, we advise you to approach the bank with a proposal to change the terms of the credit agreement. The proposal should be made in writing, the main advantages of the bank in case of debt restructuring should be noted and sent to the head of the bank’s management office, which is often located in the city of Kiev.

If the bank responds positively to your offer, a change in the terms of the credit agreement may prevent the accumulation of substantial credit debts, penalties and penalties that you are in any case obliged to pay.

If the bank refuses to change the terms of the credit agreement, you have the right to file a lawsuit with the court.

The following articles of the Ukrainian Civil Code must be invoked before the courts.

According to art. 1. 651 Civil Code of Ukraine, modification or termination of a contract is permitted only by agreement of the parties, unless otherwise established by the treaty or the law.

In the event of a material change in the circumstances under which the parties concluded the contract, the contract may be modified or terminated by agreement of the parties, unless the contract otherwise provides or derives from the nature of the obligation.

A change in circumstances is essential if it has changed so much that, had the parties been able to foresee it, they would not have concluded the contract or otherwise concluded it.

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