How to collect a debt from a non-resident of Ukraine

When cooperating with foreign counterparties and individuals, there is a very high risk that there will be problems with prepayment for goods, payment of the next tranche, etc. That is, we are talking about debt.

Forcing a non-resident of Ukraine to repay a debt is quite a difficult task, because the creditor and the debtor are in different jurisdictions (countries). However, even in such a difficult situation, a solution can be found. The lawyers of our company "PRIKHODKO & PARTNERS" will offer effective solutions for debt collection from non-residents of Ukraine.

Debt collection from a non-resident of Ukraine: legislative framework

The Constitution of Ukraine defines a foreigner as a person who is a citizen of another state/states. In accordance with Article 26 of the Basic Law, stateless persons and foreigners who are in the territory of Ukraine on legal grounds have the same rights, freedoms and obligations as citizens of Ukraine.

Debt collection from a non-resident of Ukraine is ensured by the Law of Ukraine "On Executive Proceedings". Article 77 states that debts are collected from foreign legal entities, stateless persons, and foreigners who are legally present on the territory of Ukraine by a court decision within the framework of current executive proceedings.

Pre-trial collection of debt from the debtor in another country

The first step for debt collection is "Amicable collection". Literally - "friendly collection". This is a kind of analogue of pre-trial settlement of the dispute, during which the lawyer conducts appropriate negotiations with the client, clearly formulates a written claim (it must be supported by legal arguments) and exerts influence on the debtor within the framework of the law.

For example, if the debtor has temporary difficulties and cannot pay the entire amount, it is possible to agree on phased payments. Pre-trial settlement allows you to actually collect the debt without additional costs for the creditor. The only thing that needs to be given up is the payment deadlines.

However, such negotiations and pre-trial debt collection are not always possible. In such situations, it is necessary to go to the court process.

Debt recovery from a non-resident of Ukraine in court

The main problem related to debt collection from a foreigner is the lack of funds or property in the territory of Ukraine. Actions related to establishing the assets available to the debtor may take a long time. In this situation, the solution will be an appeal to the court to establish a temporary restriction on the right to leave Ukraine.

Important: a temporary ban on departure for a debtor who is a non-resident of Ukraine, not a 100% guarantee of compliance with a court decision or other officials.

For example, if the debtor has not found any money or property on the territory of Ukraine, however, he has financial assets outside of Ukraine, there is a practice of recognizing and enforcing the judgment of the Ukrainian court in another state.

Thus, in order to protect yourself from foreign debtors, it is better to take care of legal confirmation of all the terms of the contract concluded between you and non-residents of Ukraine in advance.

Lawyers of "PRIKHODKO & PARTNERS" have extensive experience in solving situations related to problem debt. Sign up for a consultation and calculation of the cost of a lawyer's assistance in your case - leave a request below!