Credit debt collection

Late repayment of loan funds is a common problem faced by both banks and borrowers. For lenders, this translates into financial losses and performance deterioration, and for borrowers, it translates into credit history damage, fines, and in some cases, lawsuits and debt enforcement.

Why is it sometimes difficult to collect debt on a loan?

The process of debt collection can be complex and require knowledge of the law, understanding of the intricacies of working with debt collection companies and the court system. Typical difficulties faced by creditors include:

1. Unwillingness of the borrower to cooperate: debtors can ignore demands for the return of funds, hide from representatives of the creditor, and not provide the necessary information.
2. The complexity of gathering evidence: to confirm the debt and justify its claims, the creditor needs clear and legally prepared documents (credit agreement, payment schedule, payment receipts, etc.).
3. Imperfect legislation: the legal framework for debt collection has gaps and ambiguous interpretations, which complicates the process for creditors.
4. Length of Litigation: Litigation tends to take a long time, requiring significant costs in court fees and attorney fees.
5. Inefficiency of the work of collectors: the activities of collection companies do not always comply with the law and ethical standards, which can
6. lead to a violation of the debtor’s rights and a delay in the collection process.

What are the ways to collect debt on a loan?

Depending on the specific situation, the creditor can use one of the following debt collection methods:

1. Out-of-court procedure: involves negotiations with the borrower, sending him written demands for debt repayment, debt restructuring (changing the payment schedule, providing preferential terms, etc.).
2. Judicial procedure: the creditor applies to the court with a claim for debt collection. Based on the evidence provided, the court issues a decision that is binding on the debtor.
3. Enforcement proceedings: after receiving the court’s decision, the creditor applies to the bodies of the enforcement service for its enforcement. This may involve the seizure of the debtor’s accounts, seizure of property, collection of funds from his wages, etc.

Why not do it yourself if you have no legal experience?

Debt collection on your own can be risky and ineffective. Without proper knowledge and experience, you can:

• Make mistakes: draw up documents incorrectly, miss deadlines, choose the wrong tactics of action, which can lead to defeat in court or ineffective debt collection.
• Run into unscrupulous contractors: Collection companies that do not operate within the framework of the law may use illegal methods of debt collection, which may result in violation of your rights and legitimate interests.
• Experiencing emotional stress: The process of debt collection can be difficult and exhausting, which will negatively affect your psycho-emotional state.

Contact our law firm

Our law firm “Prykhodko and Partners” has many years of experience in the field of credit debt collection. We offer our clients qualified assistance at all stages of debt collection, namely:

1. Consultations: our lawyers will provide detailed explanations of your rights and legal methods of debt collection, assess the prospects for a successful resolution of the issue.
2. Pre-trial settlement: the company’s specialists will negotiate with the debtor, prepare the necessary documents (demands for refunds, restructuring agreements, etc.), and try to resolve the issue of debt repayment peacefully.
3. Preparation of documents for the court: lawyers will draw up a statement of claim, collect and issue a package of evidence documents that confirm your right and substantiate the requirements to the debtor.
4. Representation in court: our lawyers will represent your interests in court hearings, protect your rights, defend your claims for debt collection.
5. Support of executive proceedings: after receiving a court decision, lawyers will help you apply to the executive service and monitor the process of forced debt collection from the debtor.
6. Legal support at all stages: we will constantly inform you about the progress of the case, provide advice on all issues that will arise during the debt collection process.

We offer a full range of services and an individual approach: to each client. Our services are cost-effective, as they will help you not only to recover funds, but also to avoid unnecessary costs for mistakes during independent debt collection.

If you want to order a consultation or find out the cost of credit debt collection with our help, fill out the form below.