A bank can seize a debtor's apartment: under what debt amount does this happen and what is the process involved?

If a property mortgaged before March 17, 2022 cannot be seized until the end of martial law, even if the borrower stops making payments, other situations allow for seizure. Theoretically, a bank or microfinance organization (MFO) can confiscate the debtor's property, but this requires adherence to a specific legal procedure.

Lawyer from the Hot Line of the AYU regarding issues related to military aggression, its consequences, and martial law Vladislav Zaytsev explained that the confiscation of real estate is only possible through a court and within the framework of enforcement proceedings. For this, it is necessary to:

• Obtain a court decision on the recovery of the debt from the debtor.
• Issue an enforcement letter to the creditor, with which they approach a state or private executor.
• Open enforcement proceedings.
• First, recover the debtor’s cash assets.
• If funds are insufficient, satisfy the creditor's claims by selling the real estate.

The property is subject to seizure, description, evaluation, and then it is sold at an electronic auction.

What debt can lead to apartment confiscation?

If the debt exceeds 20 times the minimum wage (for 2024, this is 160,000 UAH with a minimum wage of 8,000 UAH/month), the property may be seized to repay the debt.

Important nuance

If the debtor or their property is located in an area of active combat operations or temporarily occupied territory, the executor does not have the right to initiate the procedure for seizing the property.

Previously, "Telegraph" reported that not only can an apartment be confiscated for debts, but it can also be disconnected from electricity supply. Electricity is cut off after two months of debt or if the amount is 3,000 UAH.