Олександр Сич
August 31, 2026
In most cases, microfinance organisations and debt collectors recover debts through a court order — a simplified procedure that does not require the parties to appear in court. The order may be set aside upon application by the debtor within 15 days of receipt (Article 170 of the Code of Civil Procedure), after which the creditor must bring a standard claim, in which the court reviews the calculations: the period for which interest accrues, penalty limits, and the limitation period (3 years for the principal debt, 1 year for late-payment penalties). A recalculation based on these criteria usually reduces the claim significantly.
A letter from the court regarding the recovery of a microloan debt is almost never ‘the end’, but rather the start of a procedure in which the debtor has more rights than they realise. Factoring companies buy up portfolios of overdue microloans and file claims en masse, even for amounts as low as 5,000 UAH, counting precisely on people’s inaction: for those who do not respond, the court order comes into force and the enforcement service seizes their bank cards. Yet responding is simple, inexpensive and subject to strict deadlines. We’ll examine three scenarios (a court order, a default judgement, and a notary’s enforcement order) and how, in each case, to legally reduce the amount owed. We have written in detail about the limits on charges (1 per cent per day, a 15 per cent penalty, and a forfeiture not exceeding half the loan amount) in the article on debt recalculation with MFOs — here we will focus on the legal aspects. Personal support is available on the page for a lawyer specialising in loans and microloans. 
Scenario 1. Court order: 15 days to set aside
A court order is issued without a court hearing and without your involvement — the court only considers the MFI’s documents. However, a safeguard is built into the procedure itself: submit an application to the same court to set aside the court order within 15 days of the date of service (Article 170 of the Code of Civil Procedure). You do not need to provide detailed grounds for your objection — simply objecting to the claims is sufficient; the court will set aside the order, and the creditor, if they want the money, must file a standard claim. Practical details that make all the difference:
- the time limit runs from the date you receive a copy of the order, so make a note of the date of service; if you did not receive the order (due to an outdated registered address), the time limit can be extended by confirming the moment you actually became aware of the order — for example, when your bank card was blocked;
- Check your status in the Unified State Register of Court Decisions and the Register of Debtors today: many people only find out about these orders years later;
- The court fee for an application to set aside the order is nominal compared to the amount in dispute.
Why seek annulment if the debt is partly valid? Because in ordinary proceedings, the court verifies the calculation, whereas in summary proceedings it does not. It is only after the annulment that filters are applied to reduce the amount.
Scenario 2. Default judgement: 30 days to appeal
If a microfinance organisation filed a claim and you did not appear (because the summonses were sent to your old address), the court may have issued a default judgement. The procedure follows the same logic: an application to review the default judgement within 30 days of receiving it, explaining the reasons for your failure to appear and setting out your objections on the merits. Once the judgement is set aside, the case is reheard — this time with your counter-arguments.
Scenario 3. Notarial enforcement order
Some creditors bypass the courts by using a notarial enforcement order, which is immediately forwarded to the enforcement officers. The defence is to bring an action to have the notary’s enforcement order declared unenforceable. Case law in this regard consistently favours debtors: enforcement orders are set aside on the grounds that the debt is undisputed, when in fact no such debt exists (amounts are inflated, no calculation is provided, or the debt has been resold). At the same time, an application is submitted to the enforcement officer to suspend enforcement.
Four filters that reduce the amount claimed in legal proceedings
| Filter | What it filters out | Grounds |
|---|---|---|
| Term for the accrual of interest</ td> | Interest at the contractual rate is not charged after the contract has expired | Supreme Court practice, Articles 1048 and 1054 of the Civil Code |
| Limits on liquidated damages | Penalty interest exceeding 15% of the overdue payment and liquidated damages exceeding half the loan amount | Part 2 of Article 21 of the Law of Ukraine ‘On Consumer Credit’ |
| Limitation period | Principal and interest — beyond 3 years; penalty interest and fines — beyond 1 year | Articles 257, 258 of the Civil Code (to be invoked by the party!)</ td> |
| Factoring documents | Amounts not confirmed by the original calculation upon assignment of the debt | Articles 514 and 517 of the Civil Code |
The court will not raise the issue of the limitation period on its own initiative — it must be raised in writing before a decision is made. This is the argument most often ‘overlooked’ by debtors without a solicitor. 
Common mistakes made by debtors
- Ignoring ‘some letter from the court’. Missing the 15/30-day deadlines turns the disputed amount into an agreed sum subject to enforcement.
- Paying in instalments ‘just to get them off my back’ without a recalculation. Payment without reservation is treated as an acknowledgement of the full amount and interrupts the limitation period.
- Failing to raise the limitation period, hoping the court will ‘notice it itself’. If the court does not ‘see’ it, that is the party’s own assertion.
- Arguing ‘I didn’t take anything’ where a loan actually existed. The court will verify this via bank statements; the correct approach is not to deny the fact, but to provide a counter-calculation of the amount.
- Negotiating with debt collectors verbally. Any restructuring must be in writing only, specifying the full amount and repayment schedule.
When a solicitor is not needed
If the court order is recent, you are confident in drafting procedural documents and the amount is small — you can realistically file a motion to set aside the order yourself using the standard templates. You need a solicitor when deadlines have already passed and need to be extended, when the matter has reached enforcement agents and asset seizures, when there are several creditors, and when the amount at stake is worth contesting through a counterclaim in civil proceedings.
Questions and Answers
I’ve received a court order for the recovery of a microloan debt. What should I do?
Within 15 days of receipt, submit an application to the same court to set aside the court order (Article 170 of the Code of Civil Procedure). The order will be set aside, and the creditor will have to prove the amount in ordinary proceedings, where all your defences will apply.
I only found out about the order after my bank card was blocked. Is it too late?
No, if the order was not actually served on you. Submit an application for revocation together with a motion to extend the time limit, confirming the date on which you actually became aware of the order (bank statement confirming the freeze, extract from the register).
Is it lawful for the court to have made a decision without me?
That is how summary proceedings work — without summonses. For a default judgement in ordinary proceedings, there is a separate mechanism: an application for review within 30 days of receiving the judgement.
What does setting aside the order achieve if I did in fact take out the loan?
A transfer to ordinary proceedings, where the court reviews the calculations: the period for which interest was charged, penalty limits, the limitation period, and factoring documents. A typical outcome is the recovery of an amount 2–4 times less than the original claim.
What is the limitation period for microloans?
The general limitation period is 3 years for the principal and interest (Article 257 of the Civil Code); the special limitation period is 1 year for late payment charges and penalties (Article 258 of the Civil Code). It is calculated separately for each payment and applies only upon your written request.
The debt is recovered by the factoring company, not the MFI. Does this make any difference?
Request the assignment documents and the original calculation: the new creditor has exactly the same rights as the MFI did. Amounts arising ‘upon resale’ are not recoverable, and the absence of a complete set of documents constitutes grounds for dismissing the claim.
What is a notary’s enforcement order and how can it be challenged?
A method of recovery without court proceedings: the notary issues an enforcement order, and the enforcement officer initiates proceedings. This is challenged by bringing a claim to have the order declared unenforceable; courts often side with debtors when the debt is not undisputed.
Can they seize your flat or wages for a microloan?
The enforcement officer may freeze accounts and attach income within the prescribed limits; in practice, a sole residence is not sold off to settle an unsecured microloan, but seizure of property is possible. Another reason to act within the 15-day period, rather than after assets have been seized.
How much does it cost to set aside a court order?
The court fee for an application to set aside the order is minimal (a fraction of the minimum subsistence level); the main costs are legal fees if you engage a solicitor. Compared to the amounts written off from the claim, this is the cheapest procedural step in the case.
The MFO offers to ‘settle the debt for 50 per cent’. Should you agree?
First, work out the legal maximum amount of the debt: sometimes, even a ‘generous 50 per cent’ is still more than the amount the creditor would actually be able to recover through the courts. If the offer is favourable, put it in writing, specifying the full termination of the obligation.
Sources
- Civil Procedure Code of Ukraine, Articles 160–170, 280–289 — zakon.rada.gov.ua/laws/show/1618-15
- Civil Code of Ukraine, Articles 257, 258, 514, 517, 1048, 1054 — zakon.rada.gov.ua/laws/show/435-15
- Law of Ukraine ‘On Consumer Credit’, Art. 21 — zakon.rada.gov.ua/laws/show/1734-19
- Unified State Register of Court Decisions — reyestr.court.gov.ua
Defence in a case involving an MFI and the company ‘Svarog’
Send us a photo of the order or claim and the date you received it — we’ll tell you straight away how many days are left, prepare a motion for annulment and a set-off calculation that will invoke all four defences, including the limitation period. If the case is already with the enforcement agents, we will halt enforcement whilst the appeal is being heard. Related services: solicitor specialising in loans and microloans, legal representation, full price list. +38 095 554-54-24 · Kyiv, 7 Khoriva Street, Office 2 (Podil) · Mon–Fri 9.00–18.00