Judicial procedure for foreclosure on pledged property: Errors in bank claims and ways to fix them
Judicial procedure for foreclosure on pledged property: Errors in bank claims and ways to fix them
The judicial foreclosure of pledged property is not merely a mechanism for debt recovery, but a fundamental component of the financial stability of the banking system and the effective functioning of the country's economy. For a creditor, in particular a bank, a mortgage or pledge is a guarantee of the return of funds provided in the form of a loan. For the borrower, it is an opportunity to attract significant amounts of financing using existing assets. However, despite clear regulatory framework, the implementation of this mechanism in Ukraine often encounters significant obstacles, most of which are generated by the banks themselves at the stage of preparing and filing lawsuits.
This article aims not only to highlight the systemic errors made by banks, but also to provide an in-depth analysis of the reasons for their occurrence and offer practical recommendations for avoiding them, thereby ensuring more effective and predictable judicial protection of creditors' rights.
Read more in the article by EVERLEGAL lawyers for the LIGA ZAKON publication at the LINK.
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- Maryna Borysenko, Senior Associate
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