Money Blocked on Card Due to Debts: Debtor's Rights, Spending Limits, and Procedure for Lifting the Arrest

Blocking a bank account comes as a complete surprise to most people. Yesterday, you could still pay in a store or pay utility bills with the card, but today the bank informs you that access to funds is restricted. The most common reason is an open enforcement proceeding.

At the same time, people do not always understand what exactly was the basis for the arrest. Some recall an old loan, others an unpaid fine, and some find out about the debt only after the account is blocked.

After legislative changes that came into force last year, using arrested accounts has become much more difficult. Therefore, it is important to know who imposes the arrest, whether the bank can independently cancel it, and what rights a person has in such a situation.

Why a bank account can be blocked

The bank itself does not block accounts. It only executes the order of a state or private enforcement officer who opened the enforcement proceeding. The basis for this can be a court decision, court order, notary’s enforcement writ, or another document that according to the Law of Ukraine "On Enforcement Proceedings" is subject to compulsory execution.

Most often, accounts are arrested due to: loan arrears, unpaid alimony, administrative fines, debts for utilities, other court decisions that have come into legal force. After the enforcement proceeding is opened, the enforcement officer has the right to issue an order to arrest the debtor’s funds and send it to the banks. After receiving such a document, the bank restricts access to the accounts.

Why the bank cannot simply lift the arrest

When a person calls the bank, they often expect the issue to be resolved in a few minutes. In reality, bank employees do not decide whether the arrest was lawfully imposed or whether it should be canceled. Their duty is to execute the enforcement officer’s order. Therefore, even if the client is convinced that a mistake occurred or the debt was paid long ago, the bank has no right to independently restore access to the account. A new enforcement officer’s order or a relevant court decision is required.

That is why the first thing to do after the account is blocked is to find out which enforcement officer is handling the proceeding and get information about the reason for the arrest.

Why the rule about 100 thousand hryvnias no longer applies

After the start of the full-scale invasion, temporary rules were in effect that allowed people to use arrested accounts more freely. From March 2, 2022, Cabinet of Ministers of Ukraine Resolution No. 198-r was applied. It allowed individuals to make expenditure transactions from arrested accounts if the debt amount did not exceed 100 thousand hryvnias.

Because of this, arresting accounts did not always prevent the use of one’s own funds. However, this provision is no longer in effect. It was repealed by the Law of Ukraine No. 3048-IX dated April 11, 2025. Since then, the bank can no longer allow the use of an arrested account just because the debt is less than 100 thousand hryvnias.

In other words, today after the arrest is imposed, the issue must be resolved directly with the state or private enforcement officer. They decide on designating an account for expenditure transactions or lifting the arrest if there are legal grounds.

What to do if the account is already blocked

The main task is to find out as soon as possible who imposed the arrest, through which enforcement proceeding it happened, and whether it is possible to appeal such actions or at least gain access to part of the funds. First of all, you should contact the bank and ask for the enforcement proceeding number, date of the order, and the name of the enforcement officer. Usually, the bank has this information since it blocks the account based on the order.

After that, you need to find the enforcement officer. The easiest way is through the "Diia" app. In the "Services" section, there is a tab "Enforcement Proceedings" where open proceedings concerning the person, information about the enforcement officer, and main documents are displayed. If there is no access to "Diia," information can be obtained directly from the enforcement officer or through the Automated Enforcement Proceedings System.

Is it possible to use at least part of the funds

With the entry into force of the Law of Ukraine No. 3048-IX dated April 11, 2025, this possibility was canceled. Now it is not allowed to automatically use funds on an arrested account.

However, the law still provides a mechanism that allows a person not to be left completely without money. According to paragraph 10-2 of section XIII "Final and Transitional Provisions" of the Law of Ukraine "On Enforcement Proceedings," an individual has the right to apply to the state or private enforcement officer who imposed the arrest with a request to designate one current account for expenditure transactions. The enforcement officer may allow the use of funds on this account within the amount defined by law. The bank cannot make such a decision independently — a separate enforcement officer’s order is required.

The document clearly states that individual debtors whose funds are arrested by state enforcement service bodies or private enforcement officers may make expenditure transactions from the current account in an amount that does not exceed twice the minimum wage established by the law on the State Budget of Ukraine as of January 1 of the current calendar year within one calendar month. Enforcement within this amount on such an account is not carried out.

If funds are arrested on several current accounts of an individual debtor — either in one bank or in different banks, only one current account of the individual debtor in one bank should be designated for expenditure transactions.

If there are multiple enforcement proceedings against one individual debtor, one current account is designated for expenditure transactions for all enforcement proceedings.

The number of enforcement proceedings does not affect the amount that is exempt from enforcement and which the individual debtor can use for expenditure transactions.

If salary or social benefits are blocked

There are cases when funds with a special legal status are arrested. This includes pensions, state social assistance, childbirth benefits, certain payments to internally displaced persons, and other social payments defined by law.

If such funds were blocked, you need to apply to the enforcement officer with a request to lift the arrest and attach documents confirming the source of the funds. Usually, these are: a bank certificate, account statement, certificate from the Pension Fund or social protection authority.

In practice, after receiving confirming documents, enforcement officers often cancel the arrest on such funds.

According to part 4 of article 59 of the Law of Ukraine "On Enforcement Proceedings", the basis for lifting the arrest is documentary confirmation that the account has a special usage regime or that enforcement on the funds in it is prohibited by law.

Additionally, article 73 of the Law of Ukraine "On Enforcement Proceedings" defines types of income that cannot be subject to enforcement or for which special enforcement rules apply. These include certain types of state social assistance, compensations, and other social payments.

When the arrest can be fully lifted

Full cancellation of the arrest is possible not only after the debt is paid off. Grounds for this are defined in article 59 of the Law of Ukraine "On Enforcement Proceedings". Grounds may include: full execution of the court decision, termination or closure of the enforcement proceeding, cancellation of the court decision or court order, erroneous opening of the enforcement proceeding, arrest of funds that by law are not subject to enforcement.

If the enforcement officer unjustifiably refuses to lift the arrest or does not respond to requests, their actions can be appealed. First — to the head of the relevant enforcement service or the Ministry of Justice, and if necessary — in court.

Blocking a bank account does not mean that a person has permanently lost access to their funds. The most important thing is not to waste time on fruitless appeals to the bank but to quickly find out who imposed the arrest, on what grounds the enforcement proceeding was opened, and whether there are grounds to appeal or partially lift the restrictions.

If the debt really exists, the law allows designating one account for expenditure transactions and gradually resolving the issue with the enforcement officer. If pensions, social benefits were arrested, or the account was blocked by mistake, one can and should defend their rights.

Practice shows that the sooner a person starts acting, the more chances there are to regain access to funds without lengthy court disputes. That is why after receiving notification of the account arrest, it is not worth delaying problem resolution — in many cases, timely appeal to the enforcement officer or challenging their actions allows restoring access to money much faster than most debtors expect.

Previously, the "Judicial and Legal Newspaper" wrote about whether an apartment can be taken or accounts arrested.

Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp pages on Facebook and Instagram to stay informed about the most important events.