For the majority of the country’s population, paying utility bills places a significant financial burden. A few missed payments are enough for debt to start building up. It is quite difficult to pay it off all at once. This is precisely why such non-payments can lead to a large amount of utility debt. This, in turn, gives rise to disputes with housing and communal services providers. People experience increasing levels of stress and feel at a loss as to how to resolve the situation. Debt restructuring can be used as part of the solution to the debt issue.
Restructuring of housing and communal services debt: procedure
An application for debt restructuring is prepared directly by the debtor or the chairperson of the homeowners’ association. It is also possible to seek assistance from a solicitor. They will be able to represent the client’s interests.
It should be noted that each individual service is restructured separately. That is, a citizen may apply regarding:
- heating;
- electricity;
- gas;
- water.
The restructuring procedure is as follows:
- gathering your own documents;
- writing a letter with details of the debt.
The letter must be sent to the relevant company and a response awaited.
Why is restructuring necessary?
Debts for utility services are always a burden for homeowners. They still need to be paid. It is restructuring that helps to ease the process. The main reasons include the following:
- protection against electricity or gas disconnection;
- cessation of penalty charges;
- protection of property from seizure for non-payment;
- reducing the financial burden;
- a clear understanding of the repayment process;
- avoiding problems with legal proceedings.
Restructuring utility debt with Svarog
To resolve issues regarding utility arrears quickly, it is important to seek legal assistance immediately. We guarantee the following:
- a personalised approach to resolving the issue;
- the opportunity to receive clear explanations on every issue;
- full support until the case is concluded;
- collection of documents for filing a lawsuit.
Our housing lawyer is a reliable advocate at every stage of the client’s debt restructuring. To get started, simply book a consultation.
Frequently asked questions and answers
How can I restructure my housing and communal services debt?
The debtor must do the following:
- gather their own documents;
- have title documents for the property;
- submit a request to the utility company;
- in the event of restructuring, sign an agreement regarding the repayment of the debt.
When can I apply for the restructuring of utility debt?
You can start the debt restructuring process at any time. This can even be done at the enforcement stage after accounts have been frozen.
What documents are required for the restructuring of utility debt?
The property owner must have the following documents:
- passport and personal identification number;
- income statements for each adult registered at the property;
- a family composition certificate;
- recent utility bill receipts;
- documents proving ownership of property;
- documents entitling the holder to benefits.
Is it possible to stop the recovery of utility debt?
Yes, this can be done in the following cases:
- at the pre-litigation stage through debt restructuring;
- at the litigation stage through negotiations and reaching an agreement;
- at the enforcement stage by applying to the court or the supplier.
What should I do if the utility company has taken me to court?
The course of action depends on the stage the case is at. In this case, it is best to contact a solicitor immediately.
How can I challenge an incorrectly calculated utility debt?
To challenge the debt, you can take the following steps:
- gather evidence of the incorrect calculation of the debt;
- submit a formal complaint to the service provider;
- if necessary, file a complaint with the court.
How much does legal assistance with housing and communal services debt restructuring cost?
The cost of a lawyer’s services will depend on the complexity of the case and whether it is necessary to go to court. It is important to consult a lawyer straight away.