Debt collection of contract indebtedness in Russia
Legal services (legal assistance) in collecting corporate debts in pre-trial procedure and trial proceedings in the Russian Federation
Debt collection of corporate indebtedness and related legal services for legal representation in such cases are important areas of services of BRACE Law Firm.
We are dealing with various legal disputes regarding the collection of debts of legal entities and individual entrepreneurs, which arise, as a rule, in the process of entrepreneurial activity. Our main advantage is the availability of extensive experience in court cases, specialized expertise in disputes regarding the collection of debts of legal entities and individual entrepreneurs, and a well-coordinated team of lawyers and attorneys of BRACE.
Features associated with the collection of corporate debts require an individual approach to each specific court case and careful legal analysis.
Corporate debt collection
Corporate debts, that is, debts formed as a result of entrepreneurial activity, have their own particularities of collection.
The main feature of collecting corporate debts is that debtors often resort to dishonest methods aimed at deliberately avoiding returning debts. Such methods include liquidation and reorganization of companies, sale of property in favor of nominees, deliberate delays in the settlement of disputes, etc. Resolution of such cases may be complicated by the presence of large corporate debt to other creditors, as well as the risks of initiating bankruptcy cases.
Since entrepreneurial activity is risk-based, non-payment of debt is not always associated with dishonest actions of a debtor. Sometimes, such situations of corporate debt formation are associated with the presence of credit obligations, changes in the market, currency exchange rates, economic sanctions of foreign countries, seasonal recession, etc. In this regard, a competent definition of a strategy for behavior at the stage of pre-trial settlement of a dispute is of particular importance. In some cases, it is necessary to promptly take action to recover a debt and expedite the execution of a court decision; in other cases, it is recommended to follow a softer line of conduct aimed at mutually beneficial revision of the terms for debt repayment. In both cases, it is necessary to give a correct legal assessment of the situation, since the outcome of the dispute resolution depends on it.
Procedural aspects of collection of corporate debts
When collecting corporate debts, there is a need to comply with the pre-trial procedure for the settlement of the dispute. The occurrence of debt from legal entities and individual entrepreneurs is most often due to non-compliance with the terms of contracts and agreements.
In practice, cases arise in which the debtor refuses to accept a claim against him. In such a situation, it is necessary to send the claim by registered letter to the address of the legal entity indicated in the Unified State Register of Legal Entities or to the address of the individual entrepreneur indicated in the Unified State Register of Industrial Property, as well as to the addresses indicated in the contract. Subject to the rules for submitting a claim, ignoring it by the addressee, as well as avoiding it, by virtue of current legislation, will not be an obstacle to going to court, and will also serve as an additional confirmation of the defendant’s dishonesty.
Disputes arising from entrepreneurial activity shall be resolved in arbitration courts, with the exception of cases of individuals applying for debt collection from a legal entity or individual entrepreneur (for example, in cases of protection of participants in shared construction or in cases of protection of consumer rights). In these cases, such categories of disputes are subject to consideration in the courts of general jurisdiction.
It is worth noting that since 2016, the agro-industrial complex of the Russian Federation provides for the possibility of accelerated debt collection by issuing a court order. Moreover, to cancel a court order, the debtor expresses his disagreement with its adoption. In this regard, the action of the institute of pre-trial proceedings becomes optimal in cases where the debtor does not respond to claims and does not provide for appearing in court, and also does not otherwise participate in monitoring the legal fate of the arrears.
Also, in certain cases of the agribusiness of the Russian Federation, a dispute on the collection of debts of legal entities and individual entrepreneurs can be considered in a simplified procedure.
- Legal analysis of documents and other evidence submitted by a client in a dispute on collection of corporate debts
- Consultation of lawyers and attorneys at BRACE Law Firm regarding the prospects for judicial debt recovery in the Russian court
- Preparation and submission of a claim with a proposal to pay off corporate debt voluntarily on time
- Representation of interests in negotiations at the stage of pre-trial settlement of debt disputes
- Development of corporate debt recovery strategies and tactics
- Collection, preparation and retrieval of evidence for a court case
- Preparation and filing of a statement of claim (application) and other procedural documents in a judicial dispute on recovery of corporate debts
- Legal representation, case management in court by BRACE lawyers and performing of all necessary procedural duties
- Coordination of several parallel trials
- Preparation and legal support of the conclusion of amicable agreements concluded at various stages of the trial
- Appeal of judicial acts in the courts of appeal, cassation and supervisory review
- Maintenance of enforcement proceedings on the enforcement of a court decision to recover a corporate debt
- Other legal assistance in court cases on debt collection