Pre-trial debt collection
Sometimes the settlement of the issue of debt collection is possible out of court. Reminders about the debt and possible legal consequences can act on the debtor better than a lawsuit.
The most common practice is disputes about recovery from legal entities and individuals who have overstayed the lease, violated the terms of supply, labor contracts or have not violated contractual legal relations.
Debt collection under the contract arises due to non-fulfillment of the conditions agreed between the parties. Liability may also arise without a contract if material damage has been caused to the victim.
A lawyer will be able to competently analyze the situation and find a solution to the dispute. It will also answer questions:
● Is it possible to collect the debt?
● What are the deadlines?
● Is the evidence base relevant?
● Is an out-of-court decision possible?
Enforcement proceedings for debt collection
This issue is regulated by the Law on Enforcement Proceedings. According to it, the debtor may be seized on property, money, bank accounts. As well as a wanted list if the debtor has fled.
Debt collection takes place according to the decision of the state executor and must take into account the specifics of the chosen measures. Before moving on to enforcement proceedings, we recommend using the possibility of pre-trial resolution of the issue.
The procedure for collecting debt by the executive service
If it is impossible to resolve the dispute out of court, the lawyer will start the trial. Executive actions will be carried out by the state executor. It is regulated by part 1 of Article 20 of the Law "On Enforcement Proceedings".
Also, the state executor sets a time limit for the voluntary execution of the decision to collect the debt. It cannot exceed seven days. Further, the debtor is awaiting enforcement of the decision.
We recommend that you apply for a debt recovery claim only when other methods do not work.
Debt collection with a lawyer
You will receive comprehensive support from a lawyer. After the conclusion of the contract, the human rights defender assumes responsibility for representing the interests of the client. This agreement testifies to the transfer of the right to represent the interests of the client before the debtor. To collect debts, an additional agreement is concluded in the main contract with information on the grounds for the occurrence of debt and other details.
Establishing contact with the debtor for debt collection
The lawyer establishes contact with the debtor, guarantors and persons who may influence the payment of the debt. When communicating, the lawyer will explain to the debtor the amount of the debt and the possible consequences if the claim for debt collection is sent to court, offering an amicable resolution of the dispute.
The lawyer focuses on the legal consequences of late payment of debt and collection of debt by a court decision:
● Appeal to the court with a statement of claim;
● seizure of all existing property and accounts within the framework of a lawsuit;
● occurrence of additional costs for legal assistance in the amount of at least 700 US dollars;
● recovery of the court fee from the debtor.
The lawyer additionally explains that, as a result of the court decision, the seized property will be put up for sale and the entire amount of the debt, taking into account the costs of the executive service, will be recovered from the sold property.
The situation can be resolved at this stage if the debtor, after the conversation, sends confirmation of payment of the debt.
Sending a claim (requirement) for debt collection
If the debtor refuses to pay the debt, the lawyer prepares a written text of the claim (requirement), in which he explains in writing the current amount of the debt at the time of contact. In addition, the lawyer explains the content of Article 190 of the Criminal Code of Ukraine - fraud, and also reports that in case of late performance of the debt against the debtor, criminal proceedings under this article will be registered.
The lawyer gives the debtor 7 days from the date of receipt of the claim for voluntary payment of the debt. If the debtor has not paid the debt, the lawyer proceeds to the next stage of debt collection.
After preparing the text of the claim, the lawyer sends it by all available means of communication to the person, guarantors and third parties that may influence the debtor's decision to repay the debt.
The result of cooperation with a debt collection lawyer
These stages end either with confirmation of the payment of the debt obligation or a legal opinion on the settlement of debt collection in a pre-trial procedure and a recommendation to the client to file a claim for debt collection in order.
