Banking and credit disputes. Disputes with banks, MFIs, mortgages and pledges

Our law firm is ready to assist those who have become  involved in disputes with banks, financial companies, or in the event of disputes regarding the amount of debt, mortgage, or property pledge.

We help if:

• a bank or financial company has filed a lawsuit to collect a debt from you;
• you found out about a court decision to collect a debt from you;
• enforcement proceedings have been initiated to enforce a court decision to collect the debt;
• enforcement proceedings have been initiated based on a notary's enforcement order;
• money, banking accounts, cards or property have been seized;
• the executor levied a levy on your income;
• forcibly sell property that is a mortgage or pledge;
• your property has been seized and described;
• your property was put up for sale at a public auction;
• you wish to appeal against unlawful decisions or actions.

By contacting us, you will receive a free preliminary legal consultation, we will analyze your case and give you professional recommendations on possible further actions.

You will be able to consciously choose the way to protect your rights.

Don’t think that protecting your rights is difficult and expensive. We explain the essence of all processes and offer only solutions that are economically viable for our clients.

If a protection strategy is chosen, we agree with our clients on a procedure for paying costs that suits the client.

In the event of a credit dispute, we can provide assistance in the following ways:

1. Conducting negotiations to reach an agreement on debt restructuring, concluding an agreement (amicable settlement) on debt repayment, debt redemption.
2. Protection of interests in courts of first instance, appellate instance or the Supreme Court.
3. Protection of interests in enforcement proceedings.
4. The application of "forced" debt restructuring (rehabilitation plan) in the order, provided for by the Code of Ukraine on Bankruptcy Procedures.
5. Declaration of bankruptcy of the debtor.

I. Credit legal relations that exist between the creditor and the borrower (debtor) arise on the basis of contractual relations. Their change or termination is possible if there is consent of all parties.

During negotiations, there is a possibility of reaching a compromise, including by proving to opponents the futility or complexity of legal proceedings. A relatively quick resolution of the problem situation is beneficial to the creditor, who in turn may agree to change the terms of the contract, reduce the debt and extend the payment terms, agree on the conditions for the voluntary sale of collateral and mortgages on the debtor's terms, and other wishes of the debtor.

II. If the dispute is not resolved through mutually beneficial agreements, the dispute is referred to the court, where the final decision must be made. The initiator of the appeal to the court (plaintiff) can be both the creditor and the debtor (borrower). Sometimes, timely claims allow you to gain an advantage and win the case.

Judicial protection of the debtor's interests by a lawyer can be achieved by:

• objections to the amount of debt and prevention of groundless and illegal debt collection;
• reduction or cancellation of fines and penalties;
• objections and appeals to the interest rate or fees;
• appeal and invalidation of credit agreements, pledge agreements, mortgages, and sureties;
• recognition of terminated, termination of pledge, mortgage, surety contracts;
• appeal of contracts concluded without a client (based on client documents);
• appeal an assignment of the right of claim (transfer of credit) to a new creditor (collector).
• application of limitation periods;
• application of moratoriums;
• appeal and recognition of a notary's executive inscription as unenforceable (credit agreements, mortgages, microloans, microcredits);
• return of illegally collected (written off) money  through a notary's executive inscription, canceled court decisions;
• objections to the enforcement of foreclosure on pledged or mortgaged items objections to foreclosure on collateral items, mortgages;
• exclusion, removal of property from pledge or mortgage;
• appealing court decisions on the collection of credit debt, foreclosure of mortgaged and pledged items;
• stopping the illegal actions of collection companies.

You can learn more about judicial practice at the link.

III. For a creditor, a court decision made in his favor, even  the final one, is about half the case. A decision that has entered into legal force is subject to execution. And if it is not executed voluntarily, such a decision will be executed by the state enforcement service or private executors.

During enforcement proceedings, the execution of the decision may be postponed, paid in installments, or executed  within a very long period of time (delayed), which violates the interests of the creditor.

However, the imposition of  illegal arrests, restrictions,  prohibition on traveling abroad, seizure of property, illegal valuation of property, and sale of the debtor's property in violation of  current legislation canlead to violations of the debtor's rights and interests and even cause losses comparable to, or even greater than, the amount of the debt.

In order to protect the interests of our clients at the stage of enforcement proceedings, we provide services with

1. Appealing against the actions of private enforcement agents and state enforcement agencies.
2. Appealing the results of open tenders and auctions.
3. Appeal against the actions of private executors or state executors regarding the assessment of the debtor's property.
4. Suspension of collection of funds from pensions, salar y, scholarships and other income.
5. Postponements, suspension of execution of a court decision, notary's executive inscription.
6. Appealing a ban on traveling abroad.

You can learn more about protecting interests in enforcement proceedings at the link.

IV. Current legislation, in particular the Code of Ukraine on Bankruptcy Procedures, provides for a procedure for "forced" restructuring of the debtor's monetary obligations, which does not require the mandatory consent of creditors if the debtor is unable to fulfill his monetary obligations. "Forced" restructuring (rehabilitation plan) of obligations is one of the procedures in the case of declaring a person insolvent - bankruptcy.

Such restructuring is possible  both for legal entities ( rehabilitation) and individuals, citizens for obligations not related to economic activity, consumer loans, and loans from financial organizations.

As a result of such restructuring, installments, postponement (exten d the term of fulfillment of the obligation) or debt write-off are possible in accordance with the procedure provided for in the restructuring (rehabilitation) plan.

A separate procedure is provided for restructuring the debtor's obligations under foreign currency loans, the fulfillment of which is secured by a mortgage.

Restructuring or rehabilitation allows you to settle all monetary obligations without the debtor losing his property and the occurrence of negative consequences that are  foreseen for a bankrupt. Only the obligations of an individual to pay alimony, damage caused to the life and health of other citizens, damage caused by crimes, and debts to pay a single social contribution are not subject to restructuring.

You can learn more about restructuring (rehabilitation) procedures at the link.

V. A debtor is declared bankrupt if it is impossible for him to fulfill his obligation and restore his solvency in any other way, including by approving a restructuring (rehabilitation) plan.

The declaration of bankruptcy of a debtor results in the fact that all of the debtor's property (including shares in joint property) is subject to sale, except for the debtor's family's only home. The funds received are used to satisfy creditors' claims, and outstanding debts are considered repaid (written off, forgiven).

If the debtor declared bankrupt has no property, his debts are also recognized as discharged (written off, forgiven).

Only obligations of an individual to pay alimony, damage caused to the life and health of other individuals, compensation for damage caused by a crime, and debts to pay a single social contribution are not subject to write-off.

Legal entities declared bankrupt cease their business activities and are liquidated.

You can learn more about the bankruptcy procedure at the link.

Cases are handled in all courts throughout Ukraine.