How to Protect a Servicemember from Loan Collection During Wartime

Under current Ukrainian law, servicemembers are entitled to a range of benefits concerning their credit obligations. This does not mean they are fully released from repaying their debt — the principal amount still remains due. However, military personnel are entitled to exemptions from penalties and interest charges, as well as the possibility of obtaining “credit holidays” or debt restructuring. In practice, though, the situation often looks different: banks file lawsuits, block accounts, and initiate the seizure of property. Therefore, it’s important to understand whether debt collection from servicemembers is lawful and what steps should be taken to defend one’s rights.

Legal Framework

Since the beginning of the full-scale war, many servicemembers have faced situations where banks continue to demand loan repayments even while they serve on the front lines.

Lawyers advise against ignoring bank notices. Instead, one should carefully review the terms of the loan agreement and contact the financial institution with a request for debt restructuring. This procedure does not require going to court — the bank can independently revise the payment schedule or loan terms.

According to Part 15 of Article 14 of the Law of Ukraine “On Social and Legal Protection of Servicemembers and Their Families”, no penalties, fines, or interest are to be charged on loans taken by servicemembers. However, this rule does not apply automatically — it requires submitting a formal request to the bank along with supporting documents confirming one’s military status.

These benefits apply only to interest and penalties, not to the principal amount of debt. Moreover, they do not apply to loans for purchasing real estate or vehicles. The law also stipulates that no financial institution has the right to demand loan repayment from a servicemember who has submitted all the required documents for benefits. During martial law, and for 90 days after its termination, banks and debt collectors are prohibited from making any demands for repayment.

This protection applies not only to active servicemembers but also to:

– individuals who were injured in combat and have disabilities;

– family members of fallen soldiers;

– individuals with special status (those captured or missing).

It is important to note that this benefit does not extend to taxes or alimony payments. To receive “credit holidays,” one must apply directly to the bank that issued the loan.

If the Bank Refuses to Cooperate

Sometimes a servicemember may submit all necessary documents, yet the financial institution ignores the request. In such cases, the only recourse is through the courts. One effective legal measure is to petition the court to temporarily suspend loan payments under the credit agreement until a final ruling is made.

Lawyers specializing in military law can help prepare and file the lawsuit. Our legal team provides comprehensive legal support and direct communication with financial institutions.

At the pre-trial stage, attorneys may also appeal to the National Bank of Ukraine, which oversees compliance with financial legislation by both banks and debt collection agencies.

Position

There are no unsolvable situations — the key is to act promptly and not ignore the problem. The Ukrainian state has established clear mechanisms to protect servicemembers from pressure by banks and collectors. While the financial debt itself is not canceled, the state effectively acts as a guarantor, limiting the arbitrariness of creditors during wartime.

Remember: protecting the rights of military personnel is not a formality — it is a matter of justice and respect for those defending the country. If a bank violates your rights, don’t stay silent — seek legal assistance.