What to do about utility debt?
According to data from the State Statistics Service of Ukraine, in April–June 2025, Ukrainians paid a total of UAH 64.341 billion for housing and utility services. At the same time, household debt for these services in the second quarter of 2025 reached UAH 106.6 billion.
To gain the opportunity of gradually repaying debts and to avoid enforcement of payments through court proceedings, it is important to conclude a debt restructuring agreement.
What is Debt Restructuring?
Debt restructuring for housing and utility services is a mechanism that allows a debtor to repay accumulated debts gradually, in installments, according to a schedule agreed upon with the service provider.
Benefits of debt restructuring:
- avoid court-ordered debt collection;
- retain eligibility for state subsidies;
- make repayments evenly without excessive financial pressure;
- stop the accrual of penalties (often penalties are written off once the agreement is signed).
Debt restructuring or installment plans is applicable to the following utility services:
- building maintenance;
- water supply;
- sewage services;
- heating and hot water supply;
- gas supply;
- electricity supply;
- waste collection and disposal.
Important to note:
- Restructuring agreements cannot cover “future debts” — only existing ones.
- For families with low income, it is advisable to apply for a housing and utility subsidy at the same time to make the repayment schedule easier to meet.
Step-by-Step Guide to Concluding a Debt Restructuring Agreement
Step 1.
Contact the service provider.
Keep in mind that for each type of service (for example, gas or electricity), you must apply separately to each relevant provider.
Step 2.
Prepare the necessary documents.
Typically required:
- an application for restructuring;
- passport and tax identification number;
- proof of ownership or housing documents (certificate, registry extract);
- household composition certificate;
- proof of income (sometimes required to set the repayment schedule);
- certificate confirming the presence or absence of a subsidy.
Step 3.
Obtain an official calculation of the debt.
The service provider must issue this calculation, fixing the debt as of a specific date.
Step 4.
Agree on the repayment schedule.
- Determine the term within which you can repay the debt (usually 12–60 months).
- Monthly payments will include both current charges and a portion of the debt.
Step 5.
Sign the restructuring agreement.
Step 6.
Make payments regularly.
Pay current utility charges plus the scheduled debt installments according to the contract.
Note: If the repayment schedule is not followed, the agreement is terminated, and the entire debt may be collected
through court proceedings.
What is the Maximum Payment Amount?
Under Ukrainian legislation, the total payment under such an agreement may not exceed 25% of the combined income of all household members. For pensioners and those receiving any form of social assistance, this amount cannot exceed 20% of household income.
Can the Restructuring Agreement Be Extended?
Yes. If the household budget is insufficient to repay the debt within the agreed term, the duration of the agreement may be extended until full repayment.
If you have additional questions about the procedure for concluding a debt restructuring agreement, it is advisable to consult a lawyer. Legal professionals can help you understand the details, review the contract terms, and protect your interests in dealing with utility service providers.
