Debt collection in Ukraine

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Chasing payments from customers abroad can be incredibly frustrating.

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About debt collection in Ukraine.

Debt collection in Ukraine can be a complicated process, but it is important for creditors to understand the legal system and their options in order to effectively recover unpaid debts.

The first step in debt collection in Ukraine is the out-of-court debt collection phase. This includes steps such as sending a demand letter, negotiating with the debtor, and potentially utilizing alternative dispute resolution mechanisms.

A permit is not required to conduct debt collection activities in Ukraine, but it is important to follow all relevant laws and regulations.

The legal system in Ukraine is based on civil law and is divided into three levels: local, regional, and appellate. The local courts are responsible for hearing the majority of civil cases, including debt collection disputes.

If a creditor has an unpaid, but uncontested claim, they can proceed legally by filing a claim with the appropriate court. There is a summary judicial process for uncontested claims, which is intended to be a faster and less expensive alternative to a full trial.

The court process in Ukraine can be time-consuming and costly, but it is an option for creditors seeking to recover unpaid debts. It is important to understand the limitation periods for claims in Ukraine, which vary depending on the type of debt.

Alternative dispute resolution mechanisms, such as mediation or arbitration, can also be utilized in debt collection disputes in Ukraine. These mechanisms can be less formal and less expensive than going to court.

Enforcement of a claim in Ukraine can be done when an enforcement order exists. This order can be issued by a court, and it is typically used to seize assets or income of the debtor.

In the event that a debtor is insolvent, creditors may pursue insolvency proceedings in Ukraine. This can involve the appointment of a liquidator, who will attempt to sell assets to pay off creditors. It’s important to note that the process of insolvency proceedings can be time-consuming and may not result in full recovery of the debt.

In conclusion, debt collection in Ukraine can be a complex process, and creditors should seek the help of legal professionals to help them understand the legal system and their options. it’s important to follow all relevant laws and regulations, and to consider all available options, including out-of-court debt collection, alternative dispute resolution mechanisms and court process. Creditors should also be aware of the limitation periods for claims and the insolvency proceedings if the debtor is insolvent.

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