Arbitration and out-of-court dispute resolution in Russia
Capital Group Consulting
Legal Services in Russia
London - Berlin - Moscow

DEBT COLLECTION IN RUSSIA

More than a decade after the collapse of the Soviet Union in 1991, Russia is still trying to build a functioning market economy, achieve a higher growth and, in several conditions, the economical status is reflected into the low debtor's solvency, leading to debt collection procedures in Russia.

Any relation between companies or individuals is regulated by the Russian Civil Code, including the debt collection procedures, as there is no specific law to regulate this kind of proceedings.

In Russia most of the clients for debt collection procedures are banks, other financial institutions or certain utility providers.

Even though the law in Russia provides a fixed value for the interest rate, most debtors do not agree to pay and the sum resulting from interest is usually recovered by trial procedure.

A debt collection procedure in Russia usually starts by an amicable procedure, as a last attempt to recover debts without involving a trial action. However, the Russian Law provide the need of this action and the demand letters sent to the debtor, as well as other documents from this settlement, are recognized by the court.

The pre-trial procedure consists in two phases: soft procedure and hard procedure. In the first step the debtor is informed by phone, e-mails and other similar ways about the debt. This period usually lasts between 1 and 30 days, but can not exceed 60 days.

The hard procedure involves finding further information about the debtor, for example full identity, residence / headquarter, financial information. The creditor sends official demand letters, aiming to inform about the debt and about the consequences of not fulfilling the claim. In this phase the creditor may also visit the debtor and inform him in person about the debt. This procedure can be repeated for 30 to 90 days.

When the debtor is willing to pay the debt, but can not afford the entire payment, the parties may settle on installment payments or the claim may be reduced with the interest or fines applied for missing the deadline.

In case the amiable settlement fails, the creditor is entitled to bring the case before the appropriate Court, entering into the trial procedure.

The Russian Civil Law provides a simplified procedure, by which the creditor may obtain a writ of execution without going through all the trial phases. The writ of execution can be obtained only when the debt is admitted by the debtor and when the documentation is complete.

In this case, the Court issues the enforceable document within five days, which is forwarded to the Federal Bailiff Service and a bailiff is appointed to carry out further procedures in order to recover the debt.

The debtor has the right to contest the writ of execution within ten days, situation in which the case is turned into a regular lawsuit.

The regular lawsuit is also imminebtent when the simplified procedure can not be applied.

In the trial procedure both parties must bring evidence and sustain the case and, in accordance to the Civil Law, the judge sets a date for publishing the decision.

In Russia the Court may postpone the issuance date, but both parties must be informed in written.

When the decision becomes public, both debtor and creditor must receive a certified copy of the court decision.

All the fees are paid in advance, but can be recovered when the court decision is issued in the creditors favor. In this case, the fees are included into the final sum that must be paid by the debtor.
Our services:
Everyday we work hard to make life of our clients better and happier
1
┬Ě Pre-contractual and contractual work, drafting primary pre-contractual documents (letters of intent, memoranda of understanding, preliminary agreements, etc.)
2
Identification and analysis of legal and commercial risks arising out of contractual relations
3
Legal due diligence of contract database, developing internal regulatory acts governing contractual work in the company
4
Preparation of commercial agreements including multi-lateral foreign trade agreements and agreements governed by foreign law
5
Advice on corporate management issues
6
Organization and support of merger and acquisition transactions (M&A), and support for transactions involving securities
7
Restructuring of companies
8
Advice on disaggregation issues including the disposition of non-essential assets
Why Choose Us

CG Consulting is committed to helping its clients reach their goals, to personalising their event experiences, to providing an innovative environment, and to making a difference.

Our strong sense of identification with client projects means that we are constantly striving to provide solutions, even for issues they aren't yet aware of. To this end, we adopt a progressive approach to technology and marketing techniques.

This sense of identification also means we value and promote seamless interaction with clients' own teams, and ensure the best value is obtained from their event budget.

Quality
Our tax consultants and all other employees maintain a client, service and quality oriented approach
Loyalty
Our loyalty is always to our clients
Transparency
We ensure that our clients always maintain an overview of their business in Russia
WE ARE ALWAYS OPEN TO COMMUNICATION
+44 207 193 1110
+49 30 397 73663
+7 495 740 50 25
post@cg-cons.eu
239 Kensington High Street,
London, W8 6SN,
United Kingdom

Gontardstra├če 11
10178 Berlin Mitte
Deutschland

Voentorg Building,
10 Vozdvizhenka Street,
Moscow, 125009
Made on
Tilda