Can an Apartment Be Taken Away or Accounts Frozen: Key Questions About Debts During Martial Law

Martial law does not exempt from fulfilling financial obligations. If a person does not repay debts for a long time, the creditor has the right to go to court, and after the court decision becomes legally binding – initiate enforcement proceedings. At the same time, many myths still surround the forced seizure of property. Some believe that the only housing cannot be taken away under any circumstances, while others think that enforcement proceedings are not carried out at all during the war.

In reality, the law establishes different rules. Under what conditions a debtor risks losing an apartment, which accounts can be frozen, and what guarantees apply during martial law – was analyzed by "Judicial and Legal Newspaper".

The only housing does not have absolute protection

One of the most common misconceptions is that an apartment or house, if it is a person's only place of residence, cannot be forcibly sold. In fact, Ukrainian legislation has never established an absolute ban on seizing the only housing. However, this does not mean that any debt automatically creates a risk of losing the apartment. The Law of Ukraine "On Enforcement Proceedings" defines a clear sequence of actions for state or private bailiffs.

First of all, enforcement is directed at the debtor's funds held in bank accounts or in cash. If this is insufficient, the bailiff checks for the presence of vehicles, corporate rights, valuable movable property, and other assets. Only when their value is not enough to repay the debt can the issue of selling real estate arise. Thus, the sale of an apartment is not the initial, but one of the final stages of forced enforcement of a court decision.

For which debts can enforcement be directed at an apartment

Until recently, enforcement on the only housing was allowed if the debt amount exceeded 20 minimum wages. After the adoption of Law of Ukraine No. 14005-IX, this approach changed. Now, forced sale of the only housing is possible only when the debt amount exceeds 50 minimum wages. As of 2026, this is over 432 thousand hryvnias.

Effectively, the new rules strengthened debtor protection. If the debt amount does not reach the legal threshold, the only apartment or house cannot be sold even within the framework of open enforcement proceedings. At the same time, it should be taken into account that penalties, fines, inflation losses, 3% annual interest, court costs, and enforcement fees may be added to the principal debt. As a result, the total debt amount may increase significantly.

Does the reason for the debt matter

Many property owners mistakenly believe that strict measures apply only to loan debts. In fact, for enforcement proceedings, the nature of the debt hardly matters. The basis for opening enforcement proceedings can be any court decision that has become legally binding. These can be debts under loan agreements, utility bills, IOUs, loan contracts, decisions on compensation for damages after a traffic accident, compensation for material losses, or other property claims.

In other words, the law does not establish separate rules depending on whom the person owes money to. However, in practice, seizure of an apartment solely due to unpaid utilities happens quite rarely. Usually, housing and communal service companies try to collect debts much earlier, preventing accumulation to an amount that could justify enforcement on housing.

What martial law changed

Despite widespread opinion, the introduction of martial law did not lead to a complete cessation of enforcement proceedings. Court decisions continue to be executed, and state and private bailiffs continue to exercise their powers. At the same time, legislation provides for a number of special restrictions.

In particular, enforcement actions are not carried out against property located in temporarily occupied territories or in areas where active hostilities are ongoing if such actions are practically impossible. Separate guarantees are also established for servicemen. During martial law and for one year after its termination, the law limits the possibility of enforcement on certain categories of property of such persons.

In addition, current legislation contains an interesting feature regarding mortgaged housing. If an apartment is subject to a mortgage under a consumer loan, special restrictions on its forced sale apply during martial law. At the same time, under certain conditions, enforcement may be directed at other housing not under mortgage if the requirements of the Law "On Enforcement Proceedings" are met.

When apartments are frozen and how this differs from their sale

It is often heard that after opening enforcement proceedings, the apartment is immediately taken away. However, initially, the bailiff may impose a freeze on the property, but this does not yet mean its loss. Property arrest is one of the measures to ensure the execution of a court decision. Its main purpose is to prevent the alienation of real estate until the debt is repaid.

After the relevant information is entered into state registers, the owner can no longer freely sell, gift, or otherwise re-register the apartment or house. At the same time, ownership rights do not cease. The person continues to live in their housing, use it, and bear all owner responsibilities. Only if the debt is not repaid and there is insufficient other property to enforce the court decision can the bailiff initiate the procedure for forced sale of the real estate in accordance with the Law of Ukraine "On Enforcement Proceedings".

Thus, freezing an apartment and its sale are different legal procedures. The first only restricts the right to dispose of the property, while the second leads to the transfer of ownership rights to a new owner.

Does registering children protect housing

Another common myth is that it is enough to register a child in the apartment to make it impossible to sell it within enforcement proceedings. In fact, the law does not contain such an unconditional guarantee. If minor or underage children are registered or live in the housing, the bailiff must take into account additional legal requirements to protect their rights.

In some cases, the participation of guardianship and custody authorities is necessary, and the dispute may be referred to court. The court assesses not only the fact of the child's registration but also the real life circumstances. In particular, it is clarified whether the child really lives at this address, has another place of residence, and whether the child was registered only to prevent enforcement of the court decision. Therefore, simple registration of a minor does not create absolute protection against enforcement on housing.

Which accounts cannot be frozen during martial law

During martial law, bailiffs still have the right to freeze debtors' accounts. At the same time, the law provides a list of funds that cannot be subject to enforcement. In particular, according to Article 73 of the Law of Ukraine "On Enforcement Proceedings," protection extends to certain types of social payments. These include childbirth assistance, alimony, pregnancy and childbirth benefits, payments to low-income families, certain state social benefits, and funeral funds. In addition, funds received on special accounts opened for certain state programs are not subject to arrest. This applies, in particular, to payments under the "eRecovery" program, certain accounts of internally displaced persons, and other special accounts whose usage regime is defined by law.

At the same time, in practice, there are cases when a bank automatically blocks the entire account without considering the origin of the funds. In such a situation, the person has the right to contact the bailiff with documents confirming the targeted purpose of the payments and demand the removal of the freeze on the protected funds.

What to do if you learn about a debt

If enforcement proceedings have already been opened against you or there is a risk of forced collection, it is not worth waiting until the bailiff freezes accounts or property. In many cases, timely actions allow avoiding the most serious consequences. First, it is worth checking whether enforcement proceedings have indeed been opened against you. This can be done through the Unified Debtors Register, the "Diia" app, or by contacting the state enforcement service or a private bailiff. After that, it is advisable to find out the exact amount of the debt and its components.

Often, debtors learn about additional charges only after enforcement proceedings are opened, when enforcement fees, fines, or other payments have already been added to the principal debt. If it is impossible to repay the debt in a lump sum, it is worth considering the possibility of an amicable settlement.

The law does not prohibit the parties from agreeing on debt restructuring, concluding a settlement agreement, or applying to the court for a deferral or installment of the decision's execution. In many cases, this path allows avoiding the sale of property. It is equally important to check whether the account receiving social payments or other funds protected by law from enforcement is frozen.

If this happens, it is worth immediately contacting the bailiff with documents confirming the special status of such an account. Lawyers also advise against hasty actions to re-register property after the debt arises. If it is established that the contract was concluded solely to avoid enforcement of the court decision, it may be declared invalid, and the property returned to the debtor's ownership.

It is important to remember that the mere fact of opening enforcement proceedings does not yet mean the inevitable loss of an apartment or all savings. The law provides a certain sequence of forced collection and contains a number of guarantees aimed at protecting the debtor's rights. At the same time, these guarantees work only when the person responds timely to the bailiff's demands, does not ignore court decisions, and uses the legal mechanisms to protect their rights.

What to do if the account is already blocked

If a person finds that they do not have access to their own funds, first of all, it is worth establishing the grounds for the freeze. This can be done through the bank, the "Diia" app, or directly by contacting the state or private bailiff.

After that, it is necessary to check whether the frozen funds belong to the category of those that the law prohibits enforcement on. If the account is used exclusively for receiving salary, pension, or social assistance, it is advisable to obtain the relevant certificate from the bank or workplace and submit it to the bailiff along with an application to lift the freeze or designate the account for expenditure operations.

If the bailiff refuses to eliminate the violation or does not respond to the appeal, their actions can be appealed to the court or the Ministry of Justice of Ukraine.

Thus, martial law does not cancel the obligation to execute court decisions but at the same time does not deprive debtors of legal protection. The law establishes a clear procedure for forced collection of property, defines cases when the only housing can be sold, and also provides a list of funds that cannot be frozen even within enforcement proceedings. Therefore, the mere presence of a debt does not yet mean automatic loss of an apartment or freezing of all accounts.

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