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Publication date: 29.05.2024
lawyer, 23 years of experience in enforcement.
The process of debt collection from a legal entity in Ukraine requires compliance with certain procedures and protocols.
ТекстLegal proceedings for the collection of debts from a legal entity is a procedure prescribed by law, which guarantees the repayment of the legal entity's financial obligations to creditors. This process covers a number of actions and measures aimed at recovering the debt through various legal mechanisms. It is important to emphasize that this progress follows established rules and protocols, thus protecting the rights and interests of all parties involved.
In order to ensure that legal entities fulfill their obligations to creditors, the country's legislation establishes clear guidelines and protocols for the implementation of this process. The next section will describe the stages of debt collection from a legal entity, as provided by the legislation of Ukraine.
Stage 1: Initial stage
In order for the creditor to demand debt collection, it is important that there is a legal basis. This may arise as a result of various circumstances, such as non-fulfillment of contractual obligations, non-payment for services rendered or goods supplied, violation of other obligations, etc. The creditor has the right to demand from the debtor, a natural or legal person, the fulfillment of his obligations and repayment of outstanding debt.
Procedure for out-of-court settlement of disputes
One of the options for resolving legal disputes is an out-of-court settlement procedure. This process allows parties involved in a dispute to reach a resolution without the need for a formal court hearing.
During an out-of-court settlement, both parties, together with their legal representatives, meet to negotiate and discuss the terms of a potential settlement. This may relate to various aspects of the dispute, such as financial compensation, contractual obligations or other forms of resolution.
The advantage of reaching an out-of-court settlement is that it can save you the time, money, and emotional stress associated with protracted litigation. In addition, it allows the parties involved to have more control over the outcome as they are actively involved in the negotiation process.
However, it is important to note that an out-of-court settlement is voluntary and requires the mutual consent of all parties involved. If an agreement cannot be reached, the dispute may be referred to the court.
In general, out-of-court settlement is a flexible and effective alternative to traditional litigation. This enables the parties to resolve their differences in a manner that is mutually satisfactory, ultimately leading to a more peaceful resolution of legal conflicts.
To start the debt collection process, it is necessary to send a written request to the relevant legal entity with detailed information on the amount of the debt, the reasons for its occurrence, and the specified deadlines for fulfilling the obligations. This correspondence may take various forms, such as letters, claims and the possibility of settling any disputes through amicable negotiations.
3. Judicial collection process
In the event of failure of the out-of-court settlement procedure, the creditor reserves the right to apply to the court for the purpose of debt collection.
The judicial process consists of the following successive stages:
• Submission of a claim: the creditor submits a claim to the court, setting out the reasons for demanding the return of the debt and providing the necessary supporting evidence.
• Review of the claim: the court carefully examines legal action for debt collection and has the authority to request additional evidence from all parties involved.
• Decision: the court makes a decision on debt recovery, determining the appropriate amounts, duration and method of execution of the decision. • Execution of the decision: after the court decision has entered into legal force and cannot be canceled, the creditor has the opportunity to submit a writ of execution to enforce the debt collection decision.
Procedure 4: enforcement of the debt by the enforcement service
the procedure for debt collection by the executive service covers the implementation of measures aimed at the effective implementation of the court decision. This may include:
• Forfeiture of property: the executor has the power to take possession of the assets belonging to the legal entity, with the purpose of further selling them at auction to pay off the outstanding debt.
• Account blocking: The executor has the ability to restrict access to the funds in the legal entity's bank account for the purpose of repaying the debt.
Additional actions may include confiscation of assets, prohibition of certain conduct, or entering into agreements, among other possible measures.
Result:
In Ukraine, the process of debt collection from a legal entity has a systematic approach, which consists of several stages, starting with the out-of-court settlement procedure and executive proceedings on debt collection. The creditor has the authority to demand the fulfillment of debt obligations, and the court and the executor guarantee the fulfillment of these rights in accordance with legal norms.
