Debts and loans of a serviceman: credit holidays, bailiffs, discharge of obligations

What is happening

Service does not cancel a loan, but it changes the rules. A participant in the special military operation and the members of his family are entitled to credit holidays: payments are suspended, no penalty interest accrues for that period, and the bank cannot call the loan in early. The difficulty usually lies not in the law but in the bank asking for documents the person does not hold.

The second front is enforcement. Bailiffs take from the account sums that must not be taken: payments made in connection with a wound, compensation payments, and money sent to the family. Such deductions can be reversed and refunded, but only on an application supported by evidence of what the payment was.

The third situation is the hardest. Where a serviceman dies or is assessed with first-group disability, the loan obligation is discharged, and that extends to a spouse's liability for joint debts. Banks do not always apply this of their own motion, and the family has to establish the right to discharge.

What the law says

• A participant in the special military operation and the members of his family may require credit holidays from the lender. The demand is made to the bank, not to a court.
• During the holidays payments are suspended, no penalties or late-payment charges accrue, and enforcement against pledged property is not permitted.
• Where a serviceman dies or is assessed with first-group disability, the loan obligations are discharged, including joint obligations of the spouses.
• A number of payments to servicemen are earmarked in purpose and are not subject to enforcement. The bailiff must be told so, with supporting documents.
• Neither collectors nor the bank may pressure family members or disclose the debt to third parties. There is liability for this, and complaints go to the Bank of Russia and the bailiff service.
• Participation in combat operations is a good reason for extending the time for objecting to a court order or setting aside a judgment given in your absence.

What we do

• We prepare the demand for credit holidays with a set of documents the bank cannot reject on a technicality.
• We challenge a refusal of credit holidays and the unlawful accrual of penalties during your service.
• We notify the bailiff of payments that may not be enforced against and pursue the refund of sums already taken.
• We prepare objections to a court order and an application to set aside a judgment given while you were serving.
• We represent the family in a dispute over discharge of the obligation after a serviceman's death or first-group disability.
• We prepare complaints about the conduct of collectors and the bank to the supervisory authorities.

What we need from you

• The loan agreement and the payment schedule, together with the bank's statement of the debt.
• A document confirming service: the contract, the extract from the enrolment order, or a certificate from the military unit.
• The bailiffs' decisions and the account statement showing the deduction.
• Documents on the payment where earmarked funds were taken: the wound certificate and the payment records.
• The court order, judgment or bank demand, if one has reached you.
• The death certificate and the unit's documents, or the disability certificate, for a case on discharge of the obligation.