Debt collection from individuals and legal entities

Contractual relations in our days have long become the norm of life. Organizations or private individuals enter into agreements on the performance of certain work, the provision of services, the supply or sale of products, and sometimes simply take out money on certain terms. But not always the parties properly fulfill their obligations. A conflict situation arises that requires immediate resolution. Otherwise, the injured party has the right to demand compensation for the losses incurred. The disputable issue can be settled peacefully. But often the parties do not find mutual understanding, as a result of which one of the parties to the conflict is forced to seek assistance from the competent authorities. Debt collection in court in this case is the only opportunity to restore justice. Such work is carried out by special legal services or lawyers' offices.

There are two categories of debt between the parties:

1. The parties to the conflict are individuals, in this case the issue is reduced to the return of money borrowed for a certain period. The fact of the debt must be confirmed by a receipt or a loan agreement.
2. The debtor and the creditor are legal entities, and the amount of the debt was formed as a result of failure by one of the parties to fulfill their obligations under the contract concluded in advance. If an enterprise has its own lawyer, then it can independently represent itself in court.

Debt collection begins with the examination of documents, on the basis of which a statement of claim is then drawn up. In it, the creditor must argue his claims against the debtor. Not every lawyer can correctly draw up such a statement, so in this case it is better to seek help from a lawyer who specializes in such matters. A properly written statement of claim is half the case. An experienced lawyer should study all the materials and try to observe the pre-trial procedure.

To begin with, the debtor needs to carry out the necessary claim work. A certificate of reconciliation must be drawn up , confirming the existence of arrears. This document will confirm the fact of duty. Together with the treaty itself, it will be the main evidence in court. If one of the parties evades the signing of the act, then the creditor must have confirmation that the debtor has repeatedly sent such a document. This can be a postal receipt for sending registered mail with a copy of the letter itself attached.

There is one more aspect that must be taken into account in order to recover the debt in court successfully. This is the statute of limitations. As you know, recovery is possible only within three years from the date of debt formation. At the end of this period, the collection becomes practically impossible. This is used by many debtors. They in every way postpone the time of payment, delay the signing of acts, trying to reach the expiration of the limitation period. In this situation, none, even the most good lawyer, can do anything.

There is also such a situation: at the time of filing a lawsuit in court, the debtor was insolvent. Then even if all the documents are prepared correctly and submitted on time for consideration, it is practically impossible to hold him accountable. And sometimes debtors are quite enterprising and try to hide the available assets. Therefore, it is necessary in advance to carefully examine the financial situation of the debtor company and only then take any action. If the case has already been submitted and the creditor has a fear of being deceived, he can apply for necessary measures to the debtor. In this case, the court has the right to seize property, as well as all accounts of the debtor company, than to prevent concealment of available funds. "The unlucky debtor" turns out to be deprived of any choice, and the collection of debt in court acquires real prospects.

But these procedures can be avoided if the situation is assessed in time and the right decision is taken. Debt collection through court is a forced measure. It is usually resorted to in cases where a compromise between the parties is impossible. But even after submitting documents to the court, you can avoid unnecessary expenses by concluding a peace agreement. A person should always be guided by common sense and not neglect the possible benefits.

A similar situation develops when the creditor and the debtor are natural persons. Often in life there are times when you want to buy something, and money to buy is not enough. Some in this case apply to the bank for a loan. But with the return of the amount taken, it will be necessary to pay an additional percentage. Therefore, most people prefer to borrow from relatives or friends. When making such a transaction, a loan agreement or a receipt must necessarily be drawn up. From a legal point of view, it is preferable, of course, a contract. But a receipt can also be a good guarantor and a weighty argument in court. Only to compile it should be appropriately: indicating the exact details of the parties, the amount of the loan, the name of the currency in which it is granted, and the period of repayment. And the most important thing is that you need to have a complete picture of the person to whom you give your money. You need to be completely confident in his solvency and decency. Otherwise, you can not avoid litigation.

Sometimes people take money with a clear intention not to return them. They can mislead the creditor, overstating their income in words or referring to the expensive property in the property. As a result, it turns out that the property actually belongs to another member of the family or is under arrest, and therefore can not act as a guarantor of the return of the debt. The collection of debt under the contract in this case can be difficult. Sometimes the situation is quite the opposite. A person has the necessary means to repay the debt, but hides them. This once again emphasizes the fact that you need to collect as much information as possible about who you are going to lend money to. Otherwise, the return procedure remains the same as in the case of legal entities. First you try to agree, then draw up a statement of claim, and only then the court makes a competent decision.