The legal conclusion of the Supreme Court of Ukraine: new rules for debt collection from Ukrainian debtors.

By a legal conclusion on the case №6-1474cc16 Supreme Court of Ukraine has limited the right of creditors to double recovery of collateral from debtors- guarantors within the same trial. Such debt collection in Ukraine should be realized only two claims – property and financial. Maybe simultaneously, but in different judicial trials.

The legislation of Ukraine establishes the obligation of guarantor to guarantee the return of debts of their property. But the decline in prices for real estate due to the unstable economic situation in the country is reason why the funds from the sale of property assets to satisfy creditors’ claims are not always enough. The legislation of Ukraine establishes the right of creditor to demand fulfillment of obligations from the financial guarantor and the guarantor of the property also. It can take place simultaneously, if a collateral is not enough to cover the debt, but in different proceedings.

Corporate crediting by providing mortgage borrowing obligations in Ukraine before the economic crisis was a common practice. Today creditors through courts actively demand from debtors debts by money and depreciating real estate.