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A new procedure for debt collection will be introduced in Uzbekistan

A new procedure for debt collection will be introduced in Uzbekistan
On October 31, the Legislative Chamber of the Oliy Majlis approved a draft law aimed at significantly expanding the simplified procedure for collecting debts from individuals. These updates concern debts related to utility services, telecommunication services, and other financial obligations, provided that the amount does not exceed 2.06 million soums.

This draft law, which has passed both chambers of parliament, now awaits the President’s signature. This measure is part of judicial-legal reforms and is aimed at increasing the efficiency of enforcement proceedings and reducing bureaucratic burdens.

According to the new procedure, debts for utilities, contributions paid by owners of multi-storey apartment buildings, as well as expenses for communication services such as mail and videoconferencing, may now be collected using the simplified process. Furthermore, this procedure applies to individuals’ debts that do not exceed five times the base calculation value (that is, 2.06 million soums).

Previously, this procedure was used only for administrative fines, tax debts, and some court expenses. According to senators, the expansion of this mechanism will ease the workload of Compulsory Enforcement Bureau employees and accelerate the debt recovery process.

This innovation is expected to optimize enforcement agencies’ operations and maintain a balance between debt collection and the protection of citizens’ rights. The draft law prompted discussions during the parliamentary approval process.

An important amendment was made to the draft law, which was adopted in the first reading on July 22 and in the second reading on August 12. According to a proposal from one faction, the provision envisaging the recovery of funds from individuals' bank accounts under the simplified procedure was excluded from the final version.

Now, debt collection will be limited only to the debtor’s income (such as wages, pensions, or scholarships) and will not affect bank cards. This amendment was made to support socially vulnerable groups and to prevent disproportionate infringement of parties’ rights.

The new procedure requires the active use of modern digital information systems and databases. This will minimize direct contact between government executors and debtors, and will prevent inconveniences caused by Compulsory Enforcement Bureau employees visiting places of residence.

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