Saturday07 December 2024
glasno.com.ua

Can debts for utility services be "written off" in Ukraine? An expert provides clarification on the matter.

The amount of the debt can be reduced or partially contested if the service provider has calculated it incorrectly, says attorney Tatyana Danilenko.
В Украине возможно "списание долга" за услуги ЖКХ: эксперт прокомментировала эту ситуацию.

"The cancellation of debt" for utility services is not provided for by law; however, under certain circumstances, it can be reduced or partially contested, explained Tatiana Danilenko, head of the Committee on Real Estate and Construction of the "Ukrainian Bar Association," in a comment to RBC-Ukraine.

Since the onset of the full-scale invasion of Ukraine, the collection of utility debt has been prohibited. However, individuals may be compelled to pay the accumulated debt after the end of hostilities or the temporary occupation of the territory. While it is not possible to completely write off the debt, there are options to reduce or contest the amount.

"There is no legally regulated concept of 'debt cancellation' for consumed utility services in Ukraine. However, if there are certain legal grounds, one can reduce or partially dispute the amount of utility debt by seeking a resolution through the court," — said Tatiana Danilenko.

The expert noted that the amount can be contested if it can be proven that it was calculated incorrectly. This is possible when:

  • the provider incorrectly indicated the area of the property;
  • the debt was accrued by previous owners of the property;
  • the consumer has been declared bankrupt;
  • the debt has been outstanding for more than three years.

It is also common that there is a hot water meter in the apartment, while the service provider issues a bill based on the building's overall consumption; in such cases, one can compel the provider through court to recalculate the amount.

Instead of "debt cancellation" for utilities, restructuring is possible

If a consumer plans to pay off the debt but lacks sufficient funds, they can enter into a restructuring agreement with the provider. This allows the total amount to be divided into installments, which must be paid according to a set monthly schedule. Restructuring can be arranged for a period of up to 5 years, the lawyer explained.

Debt restructuring helps avoid forced debt collection, asset seizure, compulsory sale of property, restrictions on leaving Ukraine, and additional financial costs related to legal proceedings.

"On the other hand, if an applicant for a subsidy has a utility debt that is more than three years old, the service provider may impose their terms on the debtor, keeping them 'on the hook,'" noted Danilenko.

According to her, the provider can force the debtor in a desperate situation to enter into a contract and recover not only the full amount of the debt but also debts for which the statute of limitations for recovery has already expired.

"If the service provider goes to court to recover debts from the debtor for a period exceeding 3 years, then if the debtor files a motion in court to apply the statute of limitations, such debt will only be recoverable within the last 3 years, provided that the statute of limitations has not been interrupted by partial payments or a restructuring agreement has not been concluded," — the lawyer clarified.

It is noteworthy that on November 17, the Pension Fund of Ukraine announced that Ukrainians could lose their subsidy due to a relative. Assistance will be terminated if it is found that a family member is abroad and the subsidy recipient did not report this to the Pension Fund.

We also remind that on November 8, the National Bank forecasted whether tariffs in Ukraine will increase in 2025 for gas, heating, and hot water. The NBU's inflation report for October 2024 stated that the current tariffs for gas, heating, and hot water supply would remain unchanged next year, but may rise starting in 2026.