Debt Collection Lawyers

Failure to return money can cause the collapse of a business, the destruction of a family, friendships, or, for example, the stagnation of useful commercial projects. Most often, the presence of debt becomes an exhausting test for the lender. It sometimes becomes so difficult to get your money back that you give up because of hopelessness. Debtors can be both individuals and legal entities that evade payment for various reasons. In such situations, the help of a debt recovery lawyer will be indispensable, and you can use the services of the Lawrange Law Firm.

The signal that it is time to act is usually the debtor’s lack of desire to make contact. You unilaterally have to call him with the same question: “When will the money be returned?”. In response, you can receive all kinds of refusals (or unsubscribes in the case of an official appeal), requests for deferred payment or complete ignoring. However, it is important to understand that the more promises to repay the debt you receive, the less likely it is that repayment will happen on a voluntary basis.

If you are interested in a quick and effective solution to this problem, then you should trust our professionals. Exclusively within the framework of the legal field, they search for and use the appropriate levers of influence on the debtor, due to which debt recovery often occurs without a judicial process. A positive outcome is possible when working with both individuals and legal entities. The key to success is experience, constant practice, absolute immersion in the issue and deep awareness of existing court precedents.

Main Methods of Debt Recovery

The legislative system of Ukraine has a well-structured framework for dealing with debts. It provides the possibility to resolve disputes through three methods:

• Pre-trial settlement of the dispute
• Court-based debt collection
• Enforcement proceedings

In all of the above cases, the assistance of a debt recovery lawyer will be invaluable, as the debtor will often use every means to avoid responsibility, including legal loopholes.

Here are some characteristics of each of the listed methods of handling debts.

Pre-trial Dispute Resolution

The possibility of resolving a dispute without involving judicial and law enforcement authorities. It typically involves meetings with the participation of third parties, for example, through the services of a debt recovery lawyer acting as a mediator.

The lawyer may also serve as an arbitrator for the parties involved in the dispute, recording any agreements or compromises reached. If a consensus cannot be achieved, a petition is then submitted to the court authorities.

Court-Based Debt Collection

A debt recovery lawyer prepares a claim for the repayment of the problematic debt in accordance with the law, submitting it to the court. During the dispute resolution, evidence from both parties is analyzed, after which a ruling is made to compel the defendant to repay the debt.

The authorized representative is responsible for ensuring the enforcement of the ruling and holding the borrower accountable. If the case does not progress for any reason, it may be necessary to turn to enforcement authorities.

Enforcement Proceedings

A debt recovery lawyer, when a court decision has been made, can approach specialized authorities that deal with problematic debts.

These authorities initiate the debt recovery process from active bank accounts in accordance with the law. If such accounts are unavailable, an alternative may be the description and seizure of movable or immovable property for the purpose of its subsequent sale.

Advantages of Hiring a Debt Lawyer

A debt lawyer handles problematic cases and resolves them within the framework of current legislation. Here are some key benefits of delegating such issues to experts:

• Legal Protection. A lawyer helps protect your rights and interests in case of legal disputes or debt recovery.
• Experience and Knowledge. Specialists possess the necessary knowledge and experience in debt law, enabling them to effectively handle various situations.
• Individual Approach. A lawyer can develop a strategy tailored to your unique financial situation and goals.
• Negotiation with Creditors. A lawyer negotiates with creditors on your behalf, ensuring more favorable debt repayment terms or reducing the debt amount.
• Stress Reduction. Having a professional handle your case reduces stress and anxiety.
• Financial Advice. A lawyer can provide guidance on debt management and improving your financial situation.
• Protection from Fraud. A lawyer helps identify and counter fraudulent actions by unscrupulous creditors.
• Court Representation. If the case goes to court, a lawyer represents your interests, increasing the chances of a successful resolution.

Here are a few additional benefits provided by an experienced lawyer.

Expert Assessment of the Situation

A specialist impartially analyzes the situation and objectively considers the arguments of all parties, taking into account the terms of the contract. Even a simple consultation is enough to determine the chances of a successful outcome for your side.

Risk and Time Reduction

An expert has more experience in such matters, so their assistance will be more cost-effective than attempting to resolve a debt dispute on your own.

Competent Court Representation

Lawrange lawyers can accompany you in court if the case proceeds to that stage. In such a case, you will receive comprehensive legal support that will help achieve a favorable outcome for you.

Control Over the Enforcement of the Decision

The lawyer will ensure that the judicial and legal authorities enforce the judge’s ruling. If necessary, they will file a petition for the forced recovery of the debt through the seizure of assets or real estate.

How a debt collection attorney works

Everything starts with a consultation on your question. You can talk to a lawyer at the company’s office or by phone. Based on the results of the initial consultation, it will be possible to understand:

• whether there are real chances to return the money in this situation.
• what financial costs will be required to solve this issue.
• what risks will you have to face during the case.
• how the problem will be solved (starting with the presentation of a claim, ending with the execution of a court decision, if necessary).

Specific actions are determined by the relationship between the creditor (collector) and the borrower (debtor). When working with individuals and legal entities, different algorithms are used, but each of them is based on general principles:

• Analysis of the document that is the basis of debt recovery – credit agreement, debt receipt, supply/service provision agreement, and others.
• Conducting negotiations with the debtor, sending a claim.
• Preparation, submission of a claim to the court (if it is impossible to solve the problem at the pre-trial stage).
• Appraisal, search of the debtor’s property – also, if necessary, a debt collection lawyer can make sure that this property is not transferred by the borrower to someone else. For this purpose, a request for the imposition of arrest is submitted.
• Support of executive proceedings.
• Protection of the client’s rights and interests in all court instances during the appeal of the court’s decision.

The amount of debt and the debtor’s property status play an equally important role in the choice of debt collection tactics. For example, if the debt is large and the borrower is practically insolvent, then one of the ways to speed up the consideration of the case in court may be a waiver of fines. Regardless of the degree of complexity of a specific case, a true debt collection professional practices a purely individual approach, which helps to choose the most suitable strategy.

Importantly! A debt recovery lawyer will be useful not only to creditors, but also to debtors. Our specialist will advise the borrower on all legal consequences and possibilities, as well as tell about the details of the necessary examinations during the case review.

Lawyer for debt collection from legal entities

In the work of many companies, situations related to the accumulation of debt often arise, for example, to employees (non-payment of salaries), partners (non-payment for services or goods), banks (non-repayment of loans). Delays in business are a common phenomenon, and with a peaceful settlement, it is resolved quite painlessly for the parties. At the same time, not every company conducts business competently and honestly, which can cause a debt collection dispute through court.

In a dispute with a legal entity, it is especially difficult for ordinary citizens to defend their money. The chances of successfully confronting the company’s legal department without professional knowledge and skills are very low. For this reason, it is recommended to use the help of a specialized lawyer who will strengthen your position in a disputed situation.

Regardless of which document is the basis for debt recovery from a legal entity (credit agreement, contractual obligations, loan or leasing agreement, etc.), the procedure is as follows:

• Negotiations are the most optimal option, as it allows you to return the debt without court intervention. It is possible only if there are legal instruments of influence on the debtor. The resolution of the issue through negotiations begins with a phone call or, in case of unsuccessful verbal communication, with sending a letter with a claim.
• Court – if the company has not made the payment after receiving a written claim, a lawsuit is filed with a detailed description of the circumstances of the dispute (the amount owed, fines, and copies of documents are attached).
• Forcible collection – if the debtor does not comply with the court order, money can be demanded based on the writ of execution. This procedure is regulated by the Law of Ukraine “On Executive Proceedings”.

Importantly! Filing a lawsuit against the company is possible both as a business entity and as an individual. In the case of a difficult financial situation of the debtor, it is allowed to revise the schedule, the amount of payments, and even possible repayment of the debt with the help of assets.

Debt collection lawyer by an IOU

The fact of debt transfer can be confirmed by an IOU (the receipt) and a loan agreement. In the first case, the very fact of money transfer is often recorded in writing, in the second case, conditions, terms, and obligations are determined.

By law, the receipt has the same legal force as the loan agreement. It can also contain other important information, starting from the terms of repayment of the debt and ending with the calculation of interest. Notarization is not mandatory for its execution, but it is still desirable to have the IOU certified by a notary. Debt repayment by the IOU has a statute of limitations of 3 years. Therefore, it often happens that the payment of money is deliberately delayed by the debtor.

As practice shows, debt repayment by receipt is a troublesome and time-consuming process. This is explained by the fact that a number of important points are often omitted when drafting this document, for example, the terms of refund or passport data of the parties, etc. are not specified.

Regulation of the recovery procedure, among other things, is carried out on the basis of Article 625 of the Civil Code of Ukraine, according to which the creditor can count on the return of the principal debt and:

• 3% per annum;
• penny;
• fines;
• pledges, etc.

Importantly! Calculation of the inflation index can be requested only if the funds were issued to the debtor in the national currency.

At the pre-trial stage, a claim letter is sent to the debtor with a demand to return the debt. In most cases, connecting to the work of a professional lawyer is sufficient to solve the problem without going to court.

Is it possible to return the debt without an IOU?

This process is much more complicated than the previous one. However, having enlisted the help of an experienced lawyer, the borrower has a fairly high chance of achieving positive results. The main task is to prove the fact of concluding a loan agreement. Preliminary preparation is carried out:

• statements about non-payment of debt;
• passport data of the participants in the disputed situation;
• evidence base (audio recording of a personal or telephone conversation, notarized electronic correspondence, witness statements).

At the same time, a corresponding statement is submitted to the police. As a rule, at this stage, debtors, not being ready for such radical measures, prefer to return the debt. If this did not happen and a refusal to initiate a criminal case was received, you should contact the court. In this case, the debt collection procedure is somewhat delayed. However, the help of an experienced lawyer will help to avoid this.

Importantly! Debt repayment is considered hopeless if the debtor has no regular income, movable/immovable property and funds in a bank account.

Lawyer for debt collection from individual entrepreneurs

The algorithm of actions when an individual entrepreneur becomes indebted is the same as in other cases. First, a claim letter is sent in the name of the debtor. In case of refusal to return the debt as part of a peaceful dialogue, you should go to court. It is not worth delaying this issue, as there is a risk that an individual entrepreneur will transfer its property to relatives or declare itself bankrupt, and the court will cancel its debts.

Debt from an individual entrepreneur is collected by seizure of the property with subsequent sale. The funds received are distributed among those affected by the activities of an individual entrepreneur. Immediately after receiving the relevant court decision, it is important to monitor the work of executive bodies dealing with your issue.

Debt collection lawyer under a loan agreement

The written form of the loan agreement is mandatory if the amount issued by the creditor exceeds UAN 170 or if the lender is a legal entity. If this document was certified by a notary, then, in case of non-return of funds, the notary should be asked to make an executive inscription on debt recovery. This will allow the opening of executive proceedings. In other words, there is no need to go to court.

More complicated cases with an uncertified notarized loan agreement. Here, as in other cases, a written claim should be sent to the borrower, specifying the circumstances on the basis of which the debt dispute actually arose. Then you can apply to the city, district or city-district court at the place of residence.

The lawyer of the Lawrange company will tell you what documents will be needed for the court, will help you draw up legally competent claims, and will calculate the amount of the court fee. Thus, your chances of successfully resolving a disputed issue will increase significantly.

Debt collection under a writ of execution

An executive letter or a court order is issued in case of satisfaction of a claim for debt collection, which indicates that the final stage of this process has arrived. The creditor needs to apply with this document to the state executive service or a private executor, who will ensure the enforcement of the debtor’s debt obligations to the creditor.

At this stage, it becomes possible to arrest

• bank account;
• movable/immovable property (with subsequent sale)

A debt collection lawyer will help you not miss the opportunity to receive your funds at the final stage. He knows how to interact with state executive bodies or private executors in order to achieve the desired result without wasting time.

What services does Lawrange provide?

Any situation related to the non-return of funds is a reason to contact our company. Lawrange specialists monitor all changes in the current legislation, which helps to choose the most optimal ways to solve the problem that has arisen.

We will provide professional legal assistance for both out-of-court dispute settlement and judicial settlement. The range of our services:

• Legal advice on debt issues.
• Drafting of documents, the main task of which is to resolve the dispute at the pre-trial stage. Yes, a debt collection lawyer will help you draft a claim, appeal, official letter, etc.
• Preparation of documentation, which is an evidential basis in the matter of debt collection.
• Arrangement, submission of claims to courts.
• Representation of the client’s interests in court proceedings.
• Full support of enforcement proceedings, in which the debt is collected from the debtor in a compulsory manner on the basis of a court decision.

We handle debt collection from a foreign company, based on promissory notes, loan agreements, or without such documents. Our specialists will develop and implement a comprehensive strategy that will make the debtor reconsider and repay the overdue debt, either in full or partially.

In the case of a disputed situation with a legal entity, a debt collection lawyer will conduct a carefully thought-out claim activity. It includes the preparation and sending to the address of the debtor of a competently prepared claim, in which the requirements based on the current legislation will be indicated. It is such a professional complex approach to solving the problem that significantly increases the chances of voluntary fulfillment of obligations by the debtor.

Documents required for debt collection

In order for the lawyer to be able to start working, it is important to provide him with documents confirming the existence of debt or the fact of transferring money into debt:

• An IOU must be handwritten by the borrower and contain the passport data of both parties. An IOU must also include the loan amount and the date of the money transfer. Confirmation that the borrower really received the money is his signature on the IOU.
• A loan agreement is a more complex document that describes in detail all the nuances of the agreement. That is, in addition to the data listed in the previous paragraph, the loan agreement must contain information about the form of issuing and returning funds, penalties for violation of payment terms, etc. The best option is a notarized loan agreement, which will exclude the possibility of the borrower contesting the agreement in the future. In addition, such a document will be used to collect the debt without going to court.

Also, confirmation of the transfer of funds to the borrower can be a payment order, bank receipt, etc. But testimony alone, without corresponding documents, is not considered as proof of the agreement that took place.

Importantly! If you use a receipt, you can transfer the money in person, but it is better to do it by bank transfer. So you will have an additional confirmation of the loan.

Cost of Debt Recovery Lawyer Services

The estimate is formed according to the specifics of each individual case. The first step is to assess the complexity of the situation and the likelihood of a favorable outcome in your favor.

It is advisable to contact a manager at Lawrange for an initial consultation to evaluate the potential of your specific case.

Why Choose Lawrange Professionals

Our specialists have many years of experience in resolving debt disputes. They are familiar with all the nuances of legislation and practice a comprehensive approach to assess each situation.

Among the main advantages of cooperation with Lawrange, it is worth noting:

• Professionalism – you have the opportunity to use the services of a narrow-profile lawyer who has deep knowledge in this field of law.
• Promptness – any assigned tasks are solved without the slightest delay, which is the result of considerable experience in solving similar cases.
• Availability – we are always in touch, and at the same time we keep the client informed of all events in the case.
• Legality – work is conducted exclusively within the framework of current legislation, without collection methods of creating tense situations. Our task is not to intimidate, but to achieve real results.

If you are looking for a good debt collection lawyer, then feel free to contact Lawrange. We will offer and implement effective return tactics and protect you from wasting time and money.

Conclusions

It is quite difficult to fight for debt repayment on your own. Without knowing all the legal nuances, without having the experience of solving the relevant issues, it is unlikely to be able to force the debtor to return the debt. But it can be done by Lawrange professionals who aim to work for results. Use the services of a debt recovery lawyer if you want to increase the chances of a successful debt dispute resolution at the pre-trial stage. And even if the case goes to court, our specialist will make every effort to avoid prolonging the court process, as well as monitor the course of enforcement of the court decision.

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