Attorney
Specialist in bankruptcy of individuals and legal entities. Provides legal support in bankruptcy procedures for individuals, private limited liability companies, legal entities, as well as closing executive proceedings, concluding restructuring and settlement agreements with financial institutions
Assignment of the right of claim under the credit agreement
Relationships in the field of lending, unfortunately, do not always go smoothly. Sometimes situations arise when it becomes unprofitable for the creditor or it is impossible to continue servicing the credit agreement. In this case, the question arises: how to transfer the debt to another person? The answer is simple – by ceding the right of claim.
What is assignment of the right of claim under a credit agreement?
This is a civil law mechanism that allows the creditor (assignor) to transfer all his rights and obligations under the credit agreement to another person (assignee). This means that the assignee becomes a new creditor, having the right to demand from the debtor the fulfillment of obligations under the contract.
In what cases is it relevant?
Assignment of the right of claim under a credit agreement can be relevant in many situations, both for creditors and for potential assignees (persons who receive the right to demand the fulfillment of the debtor’s obligations). Here are some of the more common cases:
For creditors:
- Sale of problem debt. This can be beneficial for banks, collection companies, investment funds and even individuals who want to dispose of distressed assets, improve their financial statements or gain quick access to cash.
- Debt restructuring. A partial debt discharge can help spread the debt burden among several creditors, which can be beneficial for a debtor who is experiencing financial difficulties.
- Change of owner. In the event of a merger or acquisition of legal entities, rights and obligations under credit agreements may be transferred to the new owner by assignment.
For assignees:
- Investments. A distressed debt assignment can be a profitable investment if the purchase price is significantly lower than the face value of the debt. The assignee can make a significant profit if he succeeds in collecting the debt from the debtor.
- Improvement of liquidity. The assignee can purchase the debt for the purpose of its further sale to other investors or collection companies.
- Strategic goals. Subrogation can be used to gain control over the debtor’s assets, such as company shares or real estate.
It is important to note that the assignment of the right of claim is not always a simple process.
There are certain legal nuances that must be taken into account to avoid problems in the future. Therefore, it is recommended to seek qualified legal assistance from lawyers who specialize in credit law. Experts of the company “Prykhodko and partners” will help you do everything correctly and quickly.
Peculiarities of the procedure for assigning the right of claim under a credit agreement
- Form of the contract: written with mandatory notarization.
- Debtor’s consent: not required, except for cases provided by contract or law.
- Notification of the debtor: the assignor is obliged to notify the debtor of the fact of assignment of the right of claim.
- Transfer of rights and obligations: from the moment of conclusion of the contract of assignment of the right of claim.
Assistance of a lawyer in case of ceding the right of claim under a credit agreement
The legal company “Prykhodko and Partners” offers comprehensive support at all stages of assigning the right of claim under the credit agreement.
Our experts will help you:
Assess the situation:
- Analyze the credit agreement and determine the possibility of its withdrawal.
- Help determine the market value of debt.
- Assess possible risks and legal nuances.
Prepare documents:
- Develop a draft contract of assignment of the right of claim, taking into account your interests.
- Collect the necessary documents, including: a credit agreement, a debt repayment schedule, documents confirming the fulfillment of obligations by the debtor, acts of acceptance and transfer of property (if it is the subject of a pledge).
Ensure legal security:
- Check the legal purity of credit documentation.
- Provide a notarized certificate of the contract of assignment of the right of claim.
- Notify the debtor of the fact of the assignment of the right of claim.
- To control the fulfillment of obligations by the debtor to the new creditor.
Represent your interests:
- Protect your rights and interests in case of disputes with the debtor or other parties.
- Represent your interests in court, if necessary.
Ensure confidentiality:
- To guarantee the confidentiality of all information received from you.
Advantages of cooperation with our company
- Experienced lawyers specializing in credit law.
- An individual approach to each client.
- Confidentiality and reliability.
- Affordable prices.
If you need advice or want to know the price of the assignment of the right of claim under the credit agreement, fill out the form below.
Calculate the cost of services
1 question
Do you need the legal help of a debt lawyer?
2 question
Are you in Kyiv?
3 question
Do you need legal assistance urgently?
Is it possible to go through the bankruptcy procedure if the debt is less than 180,000 UAH?
Bankruptcy can be filed regardless of the amount of debt — there are no minimum limits set by law. However, if the amount of debt is less than UAH 180,000, it is usually more advisable to agree on debt restructuring, as bankruptcy may be economically unprofitable.
If I am not in Kyiv, can I cooperate with you?
Yes, we work remotely throughout Ukraine and even with clients abroad! We have many clients from Lviv, Odessa, Dnipro, Kharkiv, Cherkasy and other settlements.
Communication is carried out in any way convenient for you.
You may also need:
Consultation on bankruptcy of an individual
Read moreIndividual bankruptcy
Read moreSanitation of the debtor in bankruptcy cases
Read moreRestructuring of foreign currency loan
Read moreRestructuring of PrivatBank credit card debt
Read moreRestructuring debt on a mortgage loan in foreign currency
Read moreObtaining a certificate of absence of bankruptcy
Read moreDebt write-off in bankruptcy
Read moreLawsuit for recognition of a natural person as bankrupt
Read moreBankruptcy lawyer for individuals
Read moreLiquidation of a company through bankruptcy proceedings
Read moreLegal support of the bankruptcy procedure
Read morecall back
during the day
Compensation for moral, material damage
Protection of honour, dignity, and business reputationContract Development for Business and Legal Entities
Licensing of business activities
Compensation for moral, material damage
Legal services in the field of cryptocurrency and blockchain
REGISTRATION OF COMPANIES AND OPENING OF BANK ACCOUNTS
Sale and purchase of ready-made firms
Grants and attracting investment
Business registration and support in Great Britain
Business registration and support in Switzerland
Business registration and support in the EU
Business Registration and Support in the Gulf Countries (GCC)
Business registration and support in Turkey
Business registration and support in USA
Lawyer for administrative cases
Legal services for medical businesses and doctors
Protection of honour, dignity, and business reputation
Real estate transaction support
Escort of the tender participant
Trial lawyer: support and defense in court
European Court of Human Rights (ECHR)

