Verkhovna Rada supported the draft law on the automatic arrest of debtors’ funds

Verkhovna Rada supported the draft law on the automatic arrest of debtors’ funds

The Verkhovna Rada adopted as a basis the draft law "On Amendments to Certain Laws of Ukraine Concerning the Digitalization of Enforcement Proceedings".

The relevant government draft law No. 9363 in the first reading at the session on November 20 was supported by 271 deputies, indicates information on the parliament’s website.

The press service of the Ministry of Justice explained that this draft law envisages the modernization and digitalization of some stages of enforcement proceedings, which will help reduce the duration of enforcement actions and increase their efficiency.

Among other things, the proposed changes in the draft law include:

• improving the procedure for levying funds on debtors’ accounts in banks and other financial institutions (automated arrest of funds). At the same time, the connection of banks and other financial institutions to information interaction will be mandatory;
• defining the procedure for levying funds on debtor’s money held in deposit accounts;
• implementing automated interaction between the Enforcement Proceedings System and the securities depository accounting system;
• implementing interaction between the Unified Debtor Registry (as a component of the automated enforcement proceedings system) and other registries to prevent the debtor from disposing of property (such interactions will be carried out automatically);
• automated removal of information about a person from the Unified Debtor Registry and the release of funds on their accounts in case of receipt of sufficient funds to satisfy the claims on the relevant account of the state enforcement service or private executor;
• the possibility of generating a certificate on the presence/absence of information about a person in the Unified Debtor Registry (the formation of the corresponding certificate will be carried out automatically);
• resumption of enforcement proceedings in case of re-submission of the enforcement document, rather than the opening of new enforcement proceedings. This will eliminate the duplication of information about the debtor in the Unified Debtor Registry.

"The adoption of the draft law will contribute to the optimization of enforcement proceedings stages, the duration of enforcement actions, and the increase of their efficiency. The implementation of the draft law is possible without any expenditure from the State Budget of Ukraine and will only contribute to increasing revenue through the collection of sums from debtors," the Ministry of Justice comments.