Debt collection services

The debt must always be repaid, no matter what the reason for the formation of the debt.Not all people, as a rule, are distinguished by their integrity; for this reason, creditors often have to resort to forced return of their financial resources. If you need help from a lawyer and get a comprehensive answer.

The debt that has arisen in relation to a person (organization or individual) is called creditor. When such a situation arose, this indicates the unsatisfactory financial condition of the citizen. The circumstances can be very diverse due to which he can become a debtor, for example, the following can be distinguished among them:

• a drop in sales volumes, the fact of a loss or a decrease in profit based on the results of the borrower’s activities;
• loss of a person’s job or key source of income;
• delays in payment of labor;
• reduction in salary, as a result of which it becomes unrealistic to fulfill obligations in full;
• sudden increase in accounts receivable;
• presence of several loans;
• health problems of the borrower or his relatives;
• forgetfulness of the borrower;
• avoidance of obligations.

Debt may arise for the following reasons:

• receipt;
• utility bills;
• taxes;
• loan agreement;
• membership fees;
• lease agreement;
• loan agreement without receipt.

Failure to comply with an obligation upon the due date of payment is an overdue debt specified in the contract. It comes the next day as soon as the debtor stops fulfilling the terms of the deal.

A citizen can be held liable for obligations for deliberate and malicious non-payment; many options involve legal collection of debts.

Debt collection

At any stage of the proceedings, Russian legislation is always ready to provide the creditor with the right to collect debts. For example, debt collection from individuals occurs in three ways: pre-trial, judicial and extrajudicial.

Pre-trial

Bringing a case to court usually threatens the creditor with large costs for state fees and legal services for collection, and often you have to wait more than one month for positive results of collection, which is why the pre-trial procedure for resolving the dispute involves civil law. Certain agreements may contain a clause about this, which is mandatory by law.

A written appeal to the debtor presupposes a pre-trial agreement of the dispute formulated in the claim; this appeal is sent to him without the involvement of a judicial authority. In addition, pre-trial resolution of the issue of debt repayment involves oral and written negotiations between the debtor and the creditor with the aim of arriving at a common bilateral decision on debt restructuring.

Restructuring involves revising debt for the most moderate repayment using:

• recalculation of the debt amount;
• drawing up a new payment schedule (by providing a temporary deferment or increasing the term);
• offset of obligations of the creditor and debtor;
• removal of penalties or fines (for example, for utilities).

Initially, at the stage of pre-trial settlement of the dispute, debts can be claimed remotely (by sending notices and notices, letters by e-mail or mail) or directly through direct interaction between the parties or their representatives (visits to the debtor at the legal address or home, negotiations, etc.).

This procedure continues for approximately three months. If the debtor has not fulfilled the obligation after the specified time, the creditor sends a claim to the debtor legal entity or citizen, which prescribes:

• demand to repay a debt;
• contact information, company name (or full name of an individual);
• period for fulfilling the requirement;
• specific amount of debt (including penalties, fines and calculation);
• to send a response to a claim return address;
• Bank details for transferring money;
• an indication that if the debt is not repaid within the period specified by the claim, the creditor will go to court for collection.

In the future, it will be easier to argue the position in court based on the claim, since it was sent by registered mail with return receipt requested to the debtor, which confirms his awareness of the creditor’s attempt to amicably resolve the dispute. Moreover, the detailed content of the document will provide an opportunity to reduce the number of court hearings.

Consequently, pre-trial debt collection allows the creditor to save time, and the debtor himself to get rid of coercive measures and legal proceedings.