Two presidential draft laws: No. 3769 “On amendments to certain legislative acts of Ukraine regarding introduction of writ proceedings in civil and commercial proceedings” and No. 3768 “On amendments to certain legislative acts of Ukraine regarding introduction of automated arrest of money in civil and commercial proceedings” were registered in the Parliament. Mykola Burtovyi, attorney at Ilyashev & Partners Law Firm, analyzed the proposed amendments for the Yurydychan Praktyka:
“The draft laws introduced are prerequisite for the implementation of the Memorandum of Economic and Financial Policies concluded between Ukraine and the International Monetary Fund, according to which Ukraine undertook to enact laws that strengthen the provisions of procedural laws on the payment procedure for internal transactions and regarding seizure of bank accounts.
The draft law No. 3769 envisages simplification of the procedures for recovery of indisputable monetary debts incurred as a result of written agreements and not exceeding 100 minimum wages for individuals (UAH 137.8 thous.) and 1,000 minimum wages for legal entities – UAH 1,378 thous., respectively. At the same time, the procedure shall be simplified through: electronic legal proceedings and short terms of consideration and making decision on writ by the court (3 days from the date of filing the request).
The most appealing aspect of the procedure is the amount of court fee for filing a request. It is proposed to set the fee at 0.3 minimum wages for legal entities and individual entrepreneurs and 0.1 for individuals.
Thus, if the law became effective, when filing a claim for recovery of UAH 1,378 thous., a creditor would pay 1.5% of the claimed amount, i.e. UAH 20,670.00, according to the general procedure, and according to the electronic procedure – only UAH 413.4.
The draft law assumes that the order will enter into force in the absence of objections from the debtor. If any, the court will cancel the order without additional conditions, and the creditor must apply to court according the general procedure.
In general, the draft law would substantially decrease the workload of civil and commercial courts, as irrelevant as for the amount in dispute and undisputed debt would go into the sphere of e-justice.
The most problematic aspect in terms of implementation of the project would be obligatory possession of electronic digital signature by the parties. If the majority of legal entities already have it in connection with the filing of electronic reporting forms, for individuals it can become an additional obstacle to access to a new form of legal proceedings.
The second draft law No. 3768 envisages creation of electronic computer-aided seizure of funds, which in the opinion of the lawmaker will permit to ensure quick (within some minutes) actual seizure of the debtor’s money in accordance with the court decision or the resolution of the state enforcement officer and eliminate the risks of withdrawal of funds from the account by the defendant (debtor).
It should be noted that enactment of the laws commented is scheduled for early 2018”.