Ukraine: New In Enforcement Procedure

Last Updated: 25 August 2016
Article by Oleksiy Didkovskiy and Yaroslav Petrov

Adopted in the process of reforming the enforcement system, the Law of Ukraine "On Bodies and Individuals Responsible for Enforcing Judicial Decisions and Decisions of Other Bodies" (hereinafter "Enforcement Law") and the Law of Ukraine "On Enforcement Proceedings" (hereinafter "Enforcement Proceedings Law") were published in June 2016 and would take effect from 5 October 2016.

The revolutionary changes effected by the reform lay in the introduction of private enforcement service and envisaging legal framework for regulating its activities.

Qualification requirements forprivate enforcement officers

A private enforcement officer will be involved in independent professional activity. A citizen of Ukraine, aged at least 25, having obtained higher legal education of not lower than second level, speaking the official state language, having experience in the sphere of law for at least two years and having passed a qualification exam can become a private enforcement officer.

The scope of powers

Private enforcement officers will be authorized to enforce all decisions, except for decisions on removal and placement of a child, arranging meeting with such child, or removing obstacles for meetings with the child, as well as decisions on which the debtor is a state, state bodies, state and communal enterprises, institutions, organizations, legal entities with a state share in the authorized capital of which exceeds 25 percent, and/or which are financed exclusively by the state or local budgets, decisions of administrative courts and decisions of the European Court of Human Rights, along with decisions which include taking actions against property owned by the state or municipality, decisions on eviction and moving of individuals, decisions on the confiscation of property and other cases expressly stipulated by the Enforcement Proceedings Law and Enforcement Law.

A private enforcement officer will be authorized to hold cash, securities or other valuables, received from the debtor as a result of carrying out enforcement actions with the purpose of their further transfer to the claimant. In order to enroll funds recovered from the debtors in national and foreign currencies and repay them to the claimants, the private enforcement officer shall open a separate account in the state bank.

For the purpose of performance of enforcement, the enforcement officers have received the right of access not only to information about the bank accounts of the debtor, but also on the movement of funds and transactions on its accounts for a specific period of time, information about the debtor's deposit agreements, or agreements on provision the debtor with individual bank safe deposit box. The contractor will have direct access to public databases and registries containing information, including confidential, about debtors, their assets, income and funds.

Payment for services,guarantees and responsibility of private actors

The private enforcement officer is entitled to receive remuneration for performed enforcement, which consists of (i) basic remuneration (a fixed amount (for execution of decisions of non-property character) or the percentage of the amount to be recovered, or the value of the property subject to transfer under the writ of execution) and (ii) additional remuneration (determined by the agreement between the private contractor and the claimant). The amount of the basic remuneration of the private enforcement officer shall be determined by the Cabinet of Ministers of Ukraine. The basic remuneration of a private contractor, expressed as percentage, is charged to the debtor along with the amount to be recovered under the writ of execution.

The law provides for equal protection of private and public enforcement officers in case of resistance by infliction of body injuries, violence or threats of violence against them in connection with the enforcement of its decisions. Private enforcement officers may ensure proper performance of their duties by filing a reasonable request to involve the police to assist in the implementation of the enforcement actions.

The Ministry of Justice will monitor the activities of private enforcement officers by means of scheduled (held once in two years) and unplanned inspections (carried out, for example, on the basis of written applications of participants in proceedings in respect of decisions, acts or omissions of the private enforcement officer). In addition, the Ministry of Justice shall establish the Disciplinary Commission for private enforcement officers. Disciplinary penalties may lead to suspension of activities of a private enforcement officer for up to six months or termination of his/her activities.

Consequences of non-performance

Failure by the debtor to perform the demands of an enforcement officer without valid reasons within the stipulated timeframes shall lead to the penalties, which were introduced in the amount of 100 minimum wages for individuals (UAH 145,000), 200 minimum wages for officers (UAH 290,000), 300 minimum wages for legal entities (UAH 435,000) in conjunction with establishment of a new deadline. In case of repeated failure to perform the decision, the imposed fine shall be doubled and such event shall be reported to the preliminary investigation bodies in criminal affairs.

Other novels of the enforcement procedure

The Enforcement Law also provides the following improvements:

  • Introduction of a Unified register of debtors - a database on debtors, which shall be maintained with the purpose of publication of real-time information on unfulfilled financial obligations of debtors and to prevent disposal of the debtor's property. Information on debtors, contained in the Unified register of debtors, shall be open to public and disclosed on the official web-site of the Ministry of Justice.
  • The clause related to the stage of voluntary compliance was withdrawn, so enforcement proceedings will be commenced exclusively for non-voluntary enforcement.
  • The timeframes for submission of enforcement documents were increased from one year to three years, except for certificates of commissions on labor disputes and enforcement documents, where the claimant is a state or state authority, which may be submitted for enforcement within three months.
  • The possibility to transfer the enforcement documents at request of the claimant from one private contractor to another, or to the relevant authority of state enforcement service, or from the state enforcement service to the private enforcement officers.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
Evris Law Firm
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Evris Law Firm
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions