Can't pay your loan: what to do, how to reach an agreement with the bank and what collectors may do

If you cannot pay your loan, do not disappear: before the first missed payment, write to the lender, explain the situation and offer a realistic plan such as restructuring or a payment holiday. During martial law and for 30 days after it, no fines or late fees are charged for late payments on a consumer loan, but the debt itself and the interest do not go away. Collectors may call only from 9:00 to 20:00 on working days, no more than twice a day, and may not threaten you or tell your relatives or employer about the debt.

Andrii Kolisnyk November 3, 2026 9 min read

What to do in the first few days

The worst decision is to stop answering calls and wait for it all to go away. The debt does not shrink, and a lender who cannot reach you hands the case to collectors and to court sooner. Instead, take four steps:

Make a full list of your debts. For each one: the lender, the balance, the rate, the monthly payment and the due date. People often know about two loans when in fact there are five, including a credit card and an instalment plan.
Work out a minimum budget. How much you need every month for housing, utilities, food, medicines and getting to work. What remains is the real amount you can put towards debts. How to set out a budget is explained in the article on the 50/30/20 rule.
Set priorities. Basic needs and housing first, then debts. Among debts, pay off the most expensive ones first, such as payday loans, and those secured on your home or car.
Write to the lender before you fall behind. The earlier you get in touch, the more options you will be offered.

What happens if you simply stop paying

11-30 days overdueReminders, calls and messages from the lender. The arrears go into your credit history.
21-3 monthsThe lender may hand the case to a collection company or sell the debt to a new creditor.
3Several months or moreThe lender may go to court to recover the debt.
4After a court decisionEnforcement proceedings: frozen accounts, part of your wage withheld, restrictions on property.

A typical scenario. Timing depends on the lender and the contract; during martial law no fines or late fees are charged.

There is no criminal liability in Ukraine for being unable to repay a loan. Fraud is another matter: taking a loan with no intention of repaying it. But an unpaid debt damages your credit history for years, making it hard to get a new loan, an instalment plan or even some services.

How to reach an agreement with the lender

A bank or a finance company wants to get its money back, not to spend years in court. So it is more likely to agree with a borrower who comes forward with a plan. But keep in mind: restructuring and payment holidays are the lender's right, not its obligation. Your task is to show that your proposal is realistic.

Option	How it works	What to know
Restructuring	The loan term is extended and the monthly payment falls	The total overpayment grows because interest accrues for longer
Payment holiday	For a few months you pay only interest or defer payments altogether	It is a deferral, not forgiveness: interest usually keeps accruing
Writing off fines and late fees	The lender gives up part of the accrued penalties if you repay the principal	The agreement must be in writing, with specific amounts
Refinancing	A new loan at a lower rate pays off the old, more expensive one	Makes sense only if the new effective rate really is lower and the payment is affordable

How to write to the lender

Get in touch in writing: through the app, the official email address or by letter. Keep a copy and the date. In your request include:

the contract number and your details;
what happened and when: job loss, illness, mobilisation, relocation;
how much you can realistically pay each month now and when the situation may change;
which option you are asking for: a lower payment, deferring payments for a few months, writing off late fees;
documents confirming the circumstances, if you have them.

Read the terms you receive carefully: compare the new annual percentage rate and the total amount payable with what you had before. How to do this in a few minutes is shown in the article on the true cost of credit, and you can check the new payment schedule in the loan calculator.

What martial law changes

No fines or late fees. During martial law and for 30 days after it ends, a consumer borrower is exempt from penalties, fines and late fees for late payment. Penalties accrued since 24 February 2022 were to be written off by the lender.
Interest still accrues. The exemption cancels neither the principal nor the interest for using the loan. The debt grows over time even without fines.
The rate cannot be raised because you are not paying, unless the contract provides for a variable rate.
Servicemen, mobilised or under contract, are not charged interest or fines on consumer loans for the special period. The benefit does not apply to mortgages and car loans, and to use it you must notify the lender and provide documents confirming your service.

Rules for borrowers during the war are under discussion and may change, so check the current terms with your lender before deciding.

What collectors may and may not do

Overdue debts can be handled by the lender itself, a new creditor the debt was sold to, and collection companies listed in the NBU register. A company that is not in the register has no right to deal with your debt.

What is allowed

Calling, sending messages, sending letters marked "deliver in person".
Contacting you no more than twice a day, unless you initiate it.
Meeting in person only from 9:00 to 19:00, with your prior consent, at an agreed time and place.
At first contact, stating their name, company, contact details, the reason for contact and the amount of the debt.
Talking to you, your representative, heir or guarantor.

What is prohibited

Calling or writing on their own initiative from 20:00 to 9:00, at weekends, on public holidays and non-working days.
Using automated calls for more than 30 minutes a day.
Turning up without notice and consent.
Threats, blackmail, psychological or physical pressure, misleading you about the amount or deadlines.
Telling relatives, colleagues or your employer about the debt, or demanding that they pay for you.

Collectors are also prohibited from collecting and using information about your work schedule, health, travel and social media, from charging you for their costs, and from contacting a person who is in hospital, has a group I disability or is a minor once supporting documents have been received.

If collectors break the rules

During the conversation, say clearly that you demand the violation stop, and record the date, time, number and content of the call or message.
Send a written complaint to the company contacting you and to the lender.
If the violations continue, complain to the National Bank, attaching recordings and screenshots. Threats are also a reason to go to the police.

Limits on interest and penalties

The maximum daily rate on a consumer loan is 1% a day, including all charges.
Total fines and late fees on a loan above one minimum wage (UAH 8,647) cannot exceed half the amount borrowed; on smaller loans, twice the amount borrowed.
The loan term cannot be extended without your consent. According to the Grand Chamber of the Supreme Court, contractual interest accrues only within the loan term; after it the lender may claim 3% a year and inflation losses, unless the contract provides otherwise.

If the debt calculation includes amounts that are not in the contract, ask the lender for a written breakdown of the debt and check every item.

Limitation period: can you wait the debt out

The general limitation period is 3 years: that is how long the lender has to go to court. During quarantine and martial law it was suspended, but law No. 4434-IX restarted the clock from 4 September 2025.

Counting on the debt simply expiring is risky for several reasons:

a court applies the limitation period only if the debtor raises it in the case;
the period is interrupted if you acknowledge the debt, for example by making a partial payment or signing a schedule, and then starts again;
even after the period expires, the debt stays in your credit history.

What not to do

Take a new payday loan to pay off the old one. A loan of UAH 5,000 for 30 days at 1% a day becomes UAH 6,500. If you cover it each month with a new identical loan, after three months the debt will be UAH 10,985, and after six months UAH 24,134.
Hand over your card or account to "helpers" for money. That is how a person in debt becomes a money mule, adding criminal risk to financial problems.
Pay "anti-collectors" in advance who promise to cancel the debt. There is no legal way to simply annul a debt for a fee. Legal help can be useful, but check who you are dealing with and do not pay for promises.
Ignore letters and court summonses. If you do not appear, the decision will be made without you, and you will not be able to raise the limitation period or unlawful charges.

If the debts are too large

When the total debt clearly cannot be repaid even with restructuring, the last resort is the court insolvency procedure for individuals under the Bankruptcy Procedure Code. It allows a repayment plan to be approved or property to be sold under court supervision, but it costs money, takes months and has serious consequences. Before taking this step, be sure to get legal advice. A free initial consultation is available through the free legal aid system.

How not to end up here again

Build a reserve covering several months of spending before taking new loans. How to do it gradually is explained in the article on an emergency fund.
Before each loan, look not only at the payment but at the annual percentage rate and the total overpayment.
Do not borrow for everyday spending: if money runs short every month, a loan only postpones the problem and makes it more expensive.

In short

Do not disappear: contact the lender in writing before you fall behind and offer a realistic plan.
Restructuring lowers the payment but raises the overpayment. A payment holiday is a deferral, not forgiveness.
During martial law and for 30 days after it, no fines or late fees are charged on consumer loans, but interest is.
Collectors may contact you only from 9:00 to 20:00 on working days, no more than twice a day, and may not pressure relatives or your employer.
The limitation period has been running again since 4 September 2025, but the debt does not disappear by itself. Do not cover a loan with a new payday loan.

Figures in this article

Minimum wageUAH 8,647/mo
from January 1, 2026
Maximum daily rate on a consumer loan1%
from 21 August 2024, per day

Checked against official sources on October 29, 2026. If a figure changes, we update the article and the «Updated» date changes automatically.

Sources

This article is for information only and is not legal advice. Restructuring terms depend on the lender and the contract. In difficult cases, especially once a case has reached court, consult a lawyer or the free legal aid system.

Spotted a mistake or an outdated figure? Let us know and we will check it against the primary source and fix it.