{"id":10190,"date":"2026-01-01T05:21:43","date_gmt":"2026-01-01T03:21:43","guid":{"rendered":"https:\/\/axellegal.com.ua\/?p=10190"},"modified":"2026-01-01T10:58:55","modified_gmt":"2026-01-01T08:58:55","slug":"anulovani-kredyty-za-znyshhene-zhytlo-ta-avtomobili-pravovi-pidstavy-poryadok-ta-ryzyky-dlya-pozychalnykiv","status":"publish","type":"post","link":"https:\/\/axellegal.com.ua\/en\/anulovani-kredyty-za-znyshhene-zhytlo-ta-avtomobili-pravovi-pidstavy-poryadok-ta-ryzyky-dlya-pozychalnykiv\/","title":{"rendered":"Canceled loans for destroyed housing and cars: legal grounds, procedure and risks for borrowers"},"content":{"rendered":"

The full-scale war has led to the massive destruction of private property of Ukrainian citizens - houses, apartments, cars. Many of them were purchased on credit, and a logical question arises after the loss of the collateral: whether it is possible to cancel loan obligations<\/strong>If the property is completely destroyed or stolen?<\/p>\n

This article explains, when the bank can write off a loan<\/strong>What documents need to be collected, how legislative mechanisms work, and what the borrower should do to avoid debt claims.<\/p>\n

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1. Does the law provide for the cancellation of loans due to the destruction of collateral?<\/strong><\/h2>\n

Ukrainian law does not contain an explicit provision that automatically writes off a loan in the event of the destruction of collateral.
Formally, the loan agreement continues to be in effect even if:<\/p>\n

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  • \n

    a mortgaged apartment or house was destroyed;<\/p>\n<\/li>\n

  • \n

    a car that was pledged as collateral is destroyed or stolen;<\/p>\n<\/li>\n

  • \n

    the property became unusable due to the hostilities.<\/p>\n<\/li>\n<\/ul>\n

    However, there are mechanisms<\/strong>The company's debt relief programs allow it to write off or restructure its debt:<\/p>\n

      \n
    1. \n

      Article 617 of the Civil Code of Ukraine<\/strong> - exemption from liability for insolvency if it arose due to force majeure (war).<\/p>\n<\/li>\n

    2. \n

      Article 349 of the Civil Code of Ukraine<\/strong> - termination of ownership in case of destruction of property.<\/p>\n<\/li>\n

    3. \n

      Article 593 of the Civil Code of Ukraine<\/strong> - termination of the pledge in case of loss of the item.<\/p>\n<\/li>\n

    4. \n

      The Law on Consumer Lending<\/strong> - a ban on demanding additional payments in circumstances beyond the borrower's control.<\/p>\n<\/li>\n

    5. \n

      Mechanism force majeure<\/strong>The project was approved by the Ukrainian Chamber of Commerce and Industry.<\/p>\n<\/li>\n<\/ol>\n

      These rules do not automatically write off the debt, but they do give legal basis<\/strong> request its cancellation or revision.<\/p>\n

      \n

      2. The position of banks: why are they in no hurry to write off loans?<\/strong><\/h2>\n

      Banks usually take a conservative stance and continue to accrue debt, explaining that:<\/p>\n

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      • \n

        the agreement does not contain grounds for automatic write-off;<\/p>\n<\/li>\n

      • \n

        Although war is a force majeure, it does not exempt from fulfilling monetary obligations;<\/p>\n<\/li>\n

      • \n

        compensation for the destroyed property may be received in the future by the state or an international mechanism.<\/p>\n<\/li>\n<\/ul>\n

        However, banks are obliged to<\/strong>:<\/p>\n

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        • \n

          to stop the accrual of fines and penalties (in accordance with Law No. 2120-IX);<\/p>\n<\/li>\n

        • \n

          consider applications for restructuring;<\/p>\n<\/li>\n

        • \n

          take into account the individual circumstances of the borrower when settling the debt.<\/p>\n<\/li>\n<\/ul>\n

          In many cases, banks agree to loan write-off<\/strong>if the borrower proves that the collateral has been completely destroyed.<\/p>\n

          \n

          3. When can a loan be canceled in full?<\/strong><\/h2>\n

          The loan can be canceled if several conditions are met:<\/p>\n

          1. Complete destruction of the mortgaged property or collateral<\/strong><\/h3>\n

          It must be documented:<\/p>\n

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          • \n

            the act of the State Emergency Service;<\/p>\n<\/li>\n

          • \n

            a certificate from the military administration;<\/p>\n<\/li>\n

          • \n

            an inspection report of the destroyed property;<\/p>\n<\/li>\n

          • \n

            data from the Register of Damaged and Destroyed Property (Action).<\/p>\n<\/li>\n<\/ul>\n

            2. Lack of possibility to restore property<\/strong><\/h3>\n

            The Bank analyzes:<\/p>\n

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            • \n

              technical condition;<\/p>\n<\/li>\n

            • \n

              expert evaluation;<\/p>\n<\/li>\n

            • \n

              level of destruction (50-100%).<\/p>\n<\/li>\n<\/ul>\n

              3. No fault of the borrower<\/strong><\/h3>\n

              For example, if the car was destroyed by a munition, and not due to the owner's gross negligence.<\/p>\n

              4. Borrower's application in writing<\/strong><\/h3>\n

              The bank does not write off loans \"automatically\". An official procedure is required.<\/p>\n

              \n

              4. What documents are required to cancel a loan?<\/strong><\/h2>\n

              The borrower must collect the most complete package of evidence possible:<\/p>\n

              For real estate:<\/strong><\/h3>\n
                \n
              • \n

                an inspection report from the local council or military administration;<\/p>\n<\/li>\n

              • \n

                an act of the State Emergency Service of Ukraine on fire or destruction;<\/p>\n<\/li>\n

              • \n

                photographic materials;<\/p>\n<\/li>\n

              • \n

                a certificate from the Register of Destroyed Property;<\/p>\n<\/li>\n

              • \n

                documents of ownership;<\/p>\n<\/li>\n

              • \n

                mortgage agreement.<\/p>\n<\/li>\n<\/ul>\n

                For the car:<\/strong><\/h3>\n
                  \n
                • \n

                  police certificate of destruction or theft;<\/p>\n<\/li>\n

                • \n

                  a certificate from the service station about the impossibility of repair;<\/p>\n<\/li>\n

                • \n

                  an expert report on total damage;<\/p>\n<\/li>\n

                • \n

                  pledge agreement.<\/p>\n<\/li>\n<\/ul>\n

                  For the bank:<\/strong><\/h3>\n
                    \n
                  • \n

                    application for cancellation of loan obligations;<\/p>\n<\/li>\n

                  • \n

                    a request to close the credit file;<\/p>\n<\/li>\n

                  • \n

                    a package of evidence.<\/p>\n<\/li>\n<\/ul>\n

                    \n

                    5. Does compensation from the state or a future international fund have an impact?<\/strong><\/h2>\n

                    Yes. If the borrower receives a refund:<\/p>\n

                      \n
                    • \n

                      compensation may be sent to the bank;<\/p>\n<\/li>\n

                    • \n

                      the loan can be closed at the expense of these funds;<\/p>\n<\/li>\n

                    • \n

                      but the debt can be written off by the bank even before compensation if the property is recognized as dead.<\/p>\n<\/li>\n<\/ul>\n

                      The question of the future International compensation mechanism<\/strong> (the project of confiscated assets of the Russian Federation) will also be taken into account, but it is not yet fully operational.<\/p>\n

                      \n

                      6. What should the borrower do if the bank refuses to write off the loan?<\/strong><\/h2>\n

                      There are several ways to protect yourself:<\/p>\n

                      1. Submit a second application with additional evidence.<\/strong><\/h3>\n

                      Sometimes the bank changes its position after submitting an expert opinion or additional acts.<\/p>\n

                      2. File a complaint with the NBU.<\/strong><\/h3>\n

                      The regulator monitors banks' compliance with the law.<\/p>\n

                      3. Go to court.<\/strong><\/h3>\n

                      The court practice already contains cases when:<\/p>\n

                        \n
                      • \n

                        loan obligations are terminated due to the destruction of the mortgaged property;<\/p>\n<\/li>\n

                      • \n

                        the bank has no right to demand repayment of the loan if there is no collateral and no access to the property.<\/p>\n<\/li>\n<\/ul>\n

                        \n

                        7. Why is legal support important?<\/strong><\/h2>\n

                        Banks often deliberately delay the processing of applications or require documents that the borrower cannot physically obtain.
                        A lawyer helps:<\/p>\n

                          \n
                        • \n

                          correctly prepare a package of documents;<\/p>\n<\/li>\n

                        • \n

                          negotiate with the bank;<\/p>\n<\/li>\n

                        • \n

                          prepare complaints to the NBU;<\/p>\n<\/li>\n

                        • \n

                          formulate a legal position in court;<\/p>\n<\/li>\n

                        • \n

                          achieve real debt relief.<\/p>\n<\/li>\n<\/ul>\n

                          \n

                          Conclusions.<\/strong><\/h2>\n

                          Cancelation of loans for destroyed housing or a car is real mechanism<\/strong>but it is not automatic. The borrower must collect the relevant evidence, submit an application to the bank and, if necessary, defend their rights in state authorities or court.<\/p>\n

                          With properly executed documents and legal support, a significant portion of debts can be written off.<\/p>\n

                          If you need help preparing an application, negotiating with the bank, or litigating, our team will provide full legal support until the loan is closed.<\/p>\n\n\n

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                          The full-scale war has led to massive destruction of private property of Ukrainian citizens - houses, apartments, cars. Many of them were purchased on credit, and after the loss of the collateral, a logical question arises: can loan obligations be canceled if the property is completely destroyed or stolen? This article explains when a bank can write off a loan, what documents need to be collected, how the legal [...]<\/p>","protected":false},"author":1,"featured_media":10192,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/posts\/10190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/comments?post=10190"}],"version-history":[{"count":1,"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/posts\/10190\/revisions"}],"predecessor-version":[{"id":10193,"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/posts\/10190\/revisions\/10193"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/media\/10192"}],"wp:attachment":[{"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/media?parent=10190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/categories?post=10190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axellegal.com.ua\/en\/wp-json\/wp\/v2\/tags?post=10190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}