The New Debt Collection Law: Automation, the Risk of Glitches, and the Truth About “Apartment Confiscation for One Hryvnia”

On 7 April, the Verkhovna Rada of Ukraine adopted in its entirety a European integration law aimed at simplifying enforcement proceedings. The law introduces a significantly more automated mechanism for debt enforcement.

Opposition MPs criticised the legislation, claiming that it could allegedly allow debtors to be deprived of their property without a court judgment, even for failure to pay relatively minor fines. Critics also argued that the law provides for the automatic inclusion of individuals in the Unified Register of Debtors, followed by the rapid blocking of all their bank accounts.

Yuliia Tymoshenko, leader of the Batkivshchyna party, described the law as “anti-human” and called on the President to veto it.

The draft law had already sparked controversy when it was adopted at first reading in autumn 2025. At the time, we examined and debunked a number of alarming claims surrounding the proposed legislation. However, following its adoption at second reading, concerns over its potential consequences have resurfaced.

Together with legal experts, LB.ua examines whether the newly adopted law actually contains the controversial provisions attributed to it and what the digitalisation of enforcement proceedings will change in practice.