Compulsory recovery of debts is carried out in the order of judicial and executive proceedings. Each stage has its own characteristics and requires the development of a detailed strategy in order to achieve a timely and positive result, taking into account the specifics of the behavior and activities of the debtor.

Repayment of debts by way of legal proceedings, followed by enforcement proceedings, allows the recovery of the debt even if the debtor refuses to repay it. The procedure of debt repayment is carried out compulsorily by a court decision. Necessary funds, taking into account fines and penalties for the use of "other people's" funds can be written off from the debtor's accounts, and in the absence or lack of funds, a recovery is made on the debtor's property.

Funds spent on these procedures, including court fees, legal fees (professional legal assistance), other costs related to the case (eg examination, copying of documents, interrogation of witnesses, etc.) are fully covered at the expense of the debtor on the basis of a court decision.

Debt collection in court includes the following stages:

  • verification of documents confirming the existence of debt;
  • development of tactics and strategy of recovery taking into account the specifics of the legal relationship with the debtor;
  • calculation of the amount of debt taking into account the amount of penalties, inflation losses, annual for the use of other people's money, etc.
  • referral of the claim to the debtor;
  • Mediation measures (negotiations) with the debtor;
  • securing a claim before filing a statement of claim (seizure of property and funds)
  • preparation of a statement of claim for debt collection and its submission to the court;
  • court proceedings in court;
  • court decision;
  • enforcement of a court decision;

Thus, the essence of the judicial stage of debt collection is to confirm the debtor's obligation to repay the debt and to achieve its formal consolidation in the form of a court decision.

Both before filing a statement of claim and directly at the court stage of debt collection, in addition to the tools used in the proceedings, the claimant has the opportunity to apply to the court to secure the claim.

The most common and effective way to secure a claim is for the court to seize the debtor's property, which is expressed in the form of temporary deprivation of the debtor of the right to dispose of his property. The decision to seize the debtor's property in the presence of legal grounds is made by the court based on the results of consideration of the application for securing the claim.

Execution of court decisions both in terms of the application of means of securing a claim by imposing an arrest, and in ensuring the execution of court decisions is within the competence of the bodies of the state executive service and private executors.

At the request of the claimant, the state (or private) executor simultaneously with the issuance of the decision to open enforcement proceedings seizes the property and funds of the debtor, which makes the relevant decisions.

Measures of enforcement of decisions on debt collection are:

  • recovery of funds and other property (property rights) of the debtor, including if they are with other persons;
  • recovery of wages (earnings), income, pension, scholarship of the debtor;
  • seizure from the debtor and transfer to the debt collector of certain items specified in the decision;
  • other measures provided by the legislation;