Publication date: 11.04.2024
Lawyer with 15 years of legal experience, specialization: family and civil law, inheritance, contract law, criminal cases, administrative cases, cases involving foreigners, migration law
Pre-trial settlement of debt collection disputes in Ukraine is a key stage in resolving financial conflicts between debtors and their creditors. This process provides an opportunity to resolve the dispute without involving the court and can be more efficient, quicker and less costly for both parties.
Current legislation
According to the Civil Code of Ukraine and the Civil Procedure Code of Ukraine, pre-trial settlement of debt collection disputes is based on the principles of integrity, equality and mutual respect between the parties. It provides for the possibility of entering into an amicable agreement between the parties, which may include debt reduction, instalment payments or other terms and conditions aimed at resolving the dispute.
Preparing for out-of-court settlement
Before starting an out-of-court settlement, the debtor and the creditor must analyse the situation in detail and identify possible ways to resolve the conflict. This includes assessing the debt, defining the rights and obligations of the parties, and identifying potential arguments for negotiation.
Preparing a settlement agreement with a creditor
Before entering into a settlement agreement, the debtor should carefully consider all possible options for resolving the dispute and determine its priorities. It is also important to consider the potential consequences of the agreement and its impact on the debtor's financial position. Settlement agreements are one of the most effective methods of pre-trial dispute resolution.
Negotiating and agreeing on terms
Negotiations between the creditor and the debtor are an important stage in the settlement. The parties must interact and agree on terms that satisfy both parties. It is important to be flexible and willing to compromise to reach a mutually beneficial solution. It is important that the creditors and the debtor come to an agreement that both parties are happy with.
Putting the agreement in writing
Once the parties have reached an agreement on the terms of the transaction, it is necessary to put them in writing. This can be done by entering into a transaction agreement, which will clearly define all the terms and obligations of the parties.
Signing and executing the agreement
After the parties sign the transaction agreement, it becomes a legally binding document that must be fulfilled. Each party is obliged to comply with the terms of the agreement and fulfil its obligations in a timely manner.
The role of a lawyer in pre-trial settlement
In this process, the lawyer plays a key role by providing professional representation and protection of his client's interests. He or she helps the debtor to understand complex legal issues, develops a strategy for negotiating with the creditor and helps to conclude favourable agreements, facilitating a peaceful settlement of the conflict.
Debt and Creditors
Interaction between a debtor and a creditor is the basis of pre-trial dispute resolution. A creditor may have an interest in a quick and efficient resolution of a case, as this allows it to receive a refund without the cost of litigation.Removal of attachment from real estate
Debt reduction
One of the possible outcomes of an out-of-court settlement is debt reduction. This can be achieved by negotiating and concluding an agreement between the parties on debt restructuring or setting new repayment terms.
Bottom line.
Pre-trial settlement of debt collection disputes in Ukraine is an important tool for resolving financial conflicts. Its successful outcome depends on the parties' proper preparation for the process, competent representation of their interests and a deep understanding of the law. A lawyer, acting as a professional adviser and defender, plays a key role in achieving a peaceful settlement of the conflict and debt reduction.
