To get rid of a mortgage currency loan through bankruptcy won't work, - said lawyer of "Skliarenko, Sydorenko and partners"

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To get rid of a mortgage currency loan through bankruptcy won't work, - said lawyer of "Skliarenko, Sydorenko and partners"

In Ukraine were introduced institution of bankruptcy of natural persons. In world practice - it is an effective tool for the legitimate solution of bad debts. Ukrainians who were in debt bondage also got a chance to start living from a blank sheet. But not everyone would be able to take advantage of this opportunity.

In particular, it will not solve the problem of borrowers who in the mid-2000s took long-term credits in currency for the purchase of real estate, and then, due to economic crises and a sharp increase in the exchange rate, remained with astronomical amounts of debts. Attorney-at-law of "Skliarenko, Sydorenko & Partners" Dmytro Matviychuk told UKRINFORM about the pitfalls of the Codex of Ukraine on bankruptcy procedures.

The expert drew attention to part 7 of Art. 123 of the Code. This article, which defines the issues of organizing the meeting of creditors, hid the norm according to which the court should close (that is, to terminate) the proceedings in the bankruptcy case of an individual in four cases. Three of them are related to attempts to evade repayment of debts: 1) the indication of false information in the court filed a declaration of property status, 2) re-registration of property for family members, and 3) the fact of bringing to justice for wrongful acts related to insolvency. The fourth case concerns a situation where "the debtor does not have the financial ability to pay foreign currency debt secured by an apartment or residential building, which is the only place of residence of the debtor's family, under the conditions provided for by this Code".

 "That is, a person who has a foreign currency mortgage can not get the status of a bankrupt and relief from debts for lack of property," D.Matviychuk said. - This directly contradicts Article 24 of the Constitution in terms of equality of rights of citizens and the impossibility of establishing privileges or restrictions on any grounds, including property status. "

 The lawyer explained that the bankruptcy of an individual is a chance for a person to start living from a blank  sheet, when, having given the existing property (except for the minimum necessary for life, where, incidentally, the single apartment or house is included), the debtor is exempt from all other financial commitments. And the state does not want to give this chance to mortgage debtors, as many of them would like to get rid of problems in this way. At the same time, it is not profitable for banks, which in this case suffer significant losses. Real estate in Ukraine has depreciated, and its sale will not cover the borrower's existing debts, which, due to the jump in the course of the course, have become larger than the cost of mortgage housing. It is also beneficial to banks that people continue to live in their apartments, but at least somehow continue to pay their loans.

"For this purpose, the Final and Transitional Provisions of the Code provide for a mechanism for restructuring with a transitional period of five years, the conversion of a currency debt into UAH on the day the insolvency proceedings are opened, a restructuring plan that includes an assessment of the market value of housing, a reduction in the amount of debt, in proportion to the part the repayment body of the loan ", - summed up D.Matviychuk.

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