Enforcement of Seized Debtor’s Assets: Challenges and Solutions

The effectiveness of enforcing court judgments is not only a guarantee of creditors’ rights. It also underpins financial discipline, investment attractiveness, and trust in the justice system. When the system operates transparently and consistently, businesses enjoy a predictable environment, while citizens gain a sense of fairness.

Key Practical Challenges

One of the main issues is the concealment of assets by debtors. This is often done by transferring property to relatives, creating fictitious debts, or using complex corporate structures. Another significant obstacle is the limited access of enforcement officers to registries, which often contain incomplete or outdated information. The absence of a centralized database of bank accounts further delays the search for assets.

The valuation of seized property is another problematic stage. Frequently, it is hindered by the lack of access to the asset, particularly in occupied territories or restricted areas. This leads to disputes over ownership and the reliability of assessed value. Corporate rights pose particular difficulties: such assets are illiquid, and debtors often manipulate financial statements or conceal the true state of a company’s affairs.

The storage of seized assets also presents serious challenges. The costs of security and maintenance often exceed the market value of the property. The longer the process takes, the greater the risk of depreciation or even deterioration of the assets. Organizational difficulties in conducting auctions add to the problem. Frequent challenges to auction results block the sale of assets for years, creating legal uncertainty and discouraging creditors.

International Experience

Global practice demonstrates different approaches to enforcing court judgments. In Germany, procedures for valuation and asset sales are strictly regulated. In the United States, judicial precedents play a key role, while in Japan, technological solutions are widely used to ensure transparency. Scandinavian countries emphasize social responsibility, combining asset enforcement with debtor rehabilitation and reintegration into economic life.

This experience highlights that any system must balance the protection of creditors’ rights with the interests of socially vulnerable groups.

What Ukraine Needs to Do

Ukraine must expand enforcement officers’ access to registries and create a centralized database of bank accounts. A crucial step is the implementation of digital tools for asset monitoring and automated valuation. The system should also ensure proper storage of seized assets, including the option of transferring them into management before sale.

It is equally important to improve electronic auction procedures to minimize abusive appeals and to draw on international practices that prioritize transparency and social responsibility.

Conclusion

Even a legally flawless court judgment loses its meaning if it is not enforced. Without an effective enforcement mechanism, justice becomes a mere formality. Strengthening the system for enforcing seized debtor’s assets is therefore not only about protecting creditors’ rights but also about ensuring economic stability and restoring citizens’ trust in the judicial system.