Foreign experience and debt collection services by debt collectors are simply irreplaceable. In world practice, accounts receivable are fairly reliable collateral for a loan; they are taken as collateral. But everyone knows the golden truth that it is better to prevent problems. To do this, they check the buyer’s credit history and potential solvency, but there is always a “but”. Business is always a wild risk. If the problem of irrecoverable debts has already arisen, then when dealing with foreign partners, it is better to use the services of a professional. Solving problems alone is difficult and there is almost always a risk of puncture. An amateur cannot take into account all aspects, and the Western approach is synonymous with pragmatism. It is more effective to recover debts using collection services.

Actually, accounts receivable management process and should start with the rationality of providing credit to a potential buyer. A reasonable choice of partners and a clear control system are not an absolute panacea, but they can improve the problem of bad debts. If not, then it is better to rely on the competence of professionals to repay debts than on the luck of a beginner.

Debt recovery – collect debt abroad

If you need from counterparties, which are located outside Belarus– it is not at all necessary to go to them! By contacting our company, you can collect receivables abroad!

How to collect accounts receivable and repay debts?

Today, many companies want to reach a new international level, as this provides new prospects, a larger market, and greater profits. Unfortunately, many people forget that working with foreign counterparties can bring unpleasant surprises. For example, there is always the possibility that the terms of your transaction may not be fulfilled, while the counterparty owes you a large amount of money. But accounts receivable are unnecessary problems!

And the question arises: “What to do? How is collection of receivables abroad carried out? As practice shows, if such a situation arises when working with foreign enterprises, the in-house lawyer is powerless, because does not have adequate experience in debt collection.

So what should you do then, you ask? The solution is obvious! Contact a specialist who will provide full assistance in collecting accounts receivable, because debt collection is difficult and painstaking work that requires special knowledge, experience and skills. Our collection agency has been providing these services for many years. We have a network of reliable and proven partners involved in debt collection directly on the territory of the debtor.

• You don't need to learn the legal intricacies.
• You no longer have to pay travel expenses.
• You don't have to worry about repaying your debt anymore!
• We take full responsibility for all efforts to return your money!

Debt collection, debt recovery is our dignity

We, just like you, are interested in the return of your money, because you pay for our services after we return the amount that your counterparties owe you! This rule is spelled out in the contract, which once again proves our integrity and the advantage of working with us!

Trust us with debt collection abroad (management of external receivables) - save your nerves, time and money!

1. Foreclosure of receivables consists of the transfer to the collector of the debtor’s right to receive receivables in the amount of debt determined in accordance with Part 2 of Article 69 of this Federal Law, but not more than the amount of receivables that existed on the day of foreclosure, and for those same conditions.

2. Collection of receivables is carried out:

1) with the consent of the collector - by depositing (transferring) the debtor of receivables into the deposit account of the bailiff department;

2) in the absence of the consent of the collector or failure by the debtor to deposit (non-transfer) the receivables into the deposit account of the bailiff division - by selling the receivables at auction.

3. Collection of receivables is not applied in cases where:

2) the debtor is located in a foreign state with which the Russian Federation has not concluded an agreement on legal assistance;

3) the debtor is in the process of liquidation;

4) the debtor has ceased its activities as a legal entity and is excluded from the unified state register of legal entities;

5) bankruptcy proceedings have been introduced against the debtor.

4. On the foreclosure of receivables, the bailiff shall issue a resolution indicating the procedure for depositing (transferring) funds by the debtor to the deposit account of the bailiff division. The said resolution, no later than the day following the day of its issuance, is sent to the debtor and the parties to the enforcement proceedings.

5. The bailiff, by his resolution, obliges the debtor to fulfill the corresponding obligation by depositing (transferring) funds to the deposit account of the bailiff department specified in the resolution, and also prohibits the debtor from changing the legal relationship on the basis of which the receivable arose.

6. From the day the debtor receives the bailiff’s decision to foreclose on the receivable, the debtor’s fulfillment of the corresponding obligation is carried out by depositing (transferring) funds to the deposit account of the bailiff department specified in the decision. Such performance of an obligation by the debtor is considered performance by the proper creditor. The rights of the debtor in relation to the debtor do not change.

7. The debtor is obliged to immediately inform the bailiff and the debtor about the deposit (transfer) of funds to the deposit account of the bailiff department.

If your Debtor is a Foreigner. And debt obligations arose in Russia. To take action to repay the Debt, the following circumstances must be taken into account.

1. In what language are the Debentures written? (this is not so important for applying to the Court. But if the Receipt or Agreement is in a foreign language, then everything will have to be translated into Russian with notarization of the translation) There are usually no problems with this.
2. Where was your Debtor - Foreigner registered? Registered at the time of debt obligations. Or where it was even registered. In other words, where he was registered at the Migration Office. It is important. It is very important!!! So - since this address is the main one for determining the Court in which your Statement of Claim will be accepted. This will have to be confirmed with a copy of the “Certificate of Migration Registration”. And the Judge will check this by making a request to the Federal Migration Service.

If you have all this, then you can go to Court. Receive a court decision in your favor. Then legalize the Judgment for its use in the Debtor’s homeland.

This is a long and complex procedure with obtaining approvals from the Ministry of Justice, the Ministry of Foreign Affairs and the Embassy of residence of the foreign debtor. And after that, you can go to the debtor’s homeland and there, collect the Debt from him according to the Laws of his Homeland!!!

Because our experience says that the Creditor and his Foreign Debtor have problems from the very beginning. And the first problem is confirmation Addresses for registering a foreigner with Migration Registration.

Foreigners themselves - Debtors - very rarely appear in Court and participate in legal disputes. As a rule, a foreigner, having learned that you are applying to the Court, disappears from your field of vision. And for some time you cannot even determine where he is now. At home or in Russia in another region. Or in your own city. He just avoids contact with you. If you have friends at the local Federal Migration Service, they can help you, see where is your Debtor listed on the Migration Register now?

What if you don’t know anyone at the Federal Migration Service?

This company will help you turn the IOU into a normal document. And they will help you with the migration registration address. So, with an experienced lawyer, you can be sure that the Court will accept your Statement of Claim. And will make the correct Judgment in accordance with the submitted documents.

And they legalize the court decision. If necessary. And they will go to the Debtor’s homeland. And they will do a lot of things necessary to return your Money to you.

But, we always say, a very important and big question arises related to the Execution of the Judgment???

The path between receiving a Judgment and receiving money from the Debtor sometimes turns into a Life-long path!!!

The debtor is a foreigner and can move to another city in Russia. This significantly complicated the actions of the Bailiffs. But most likely, the Debtor - a foreigner - will return to his homeland. And from there he will look at the “Russian Vanya”. And think, laughing, that here in his homeland, the Debtor can be calm. Here “Russian Vanya” will never get him for anything

Do not be sad if you suddenly find out that your Debtor, having learned about your appeal to the Court, returned to his homeland. The fact is that a Judgment of a Russian Court, under certain conditions, can be made valid on the territory of the State where your Debtor, a Foreigner, lives or is hiding from you and from Debt Liability.

Therefore, we won’t say much. On this site of ours, you will find many situations related to the recovery of debts from foreign citizens and companies in their homeland.

MAIN- never give up when you learn that there is no Legal Assistance Agreement between Russia and the Debtor’s homeland. Even in this situation, there are several ways to “get” your Debtor. And turn his debt obligations signed in Russia into debt obligations valid in his homeland!!!

And having received such legalization of the Judgment of the Russian Court, you can easily begin the procedure for collecting the Debt, just as if you had a Judgment in your hands - of the local Court in the Debtor’s homeland. But I repeat again, there are many situations. It's different in every country. But all issues are resolved one way or another. Come with a specific case. And we will tell you everything. Maybe after such a meeting, you will be able to do everything yourself. And you won’t have to pay anyone anything.

EXAMPLE- in some Arab countries - “legalized Debt Obligations” can be immediately transferred for execution to the local “Writ Execution Authorities”. And the local Bailiffs themselves find the Debtor and offer him or her to start repaying the debt. Or goes to local prison until the Debt is fully repaid. And at the same time, no judicial decision of the Russian or Local Court is required. It is enough just a Receipt, which is “certified” by the Embassy of the Debtor’s country in Russia. But it “assures” subject to a number of conditions that you need to know. And do it right.

Hello Tatyana Vladimirovna!

To resolve the issue of enforcement of a Russian court decision on the territory of a foreign state in accordance with an existing agreement, the claimant (individual or legal entity) in whose favor the judgment was made must contact the judge who issued the judgment with a written petition for recognition and permission for forced execution on the territory of a foreign state, a decision of a Russian court. The petition is addressed to the competent court of a foreign state.

The claimant's petition must contain the following information:

the name of the claimant, as well as his representative, if the petition is submitted by a representative, indicating their permanent place of residence, for a legal entity - its legal and actual address;

the name of the debtor indicating his permanent or temporary place of residence, for a legal entity - his legal and actual address;

the claimant's request for permission to enforce the court decision, the essence of the decision, by whom and when it was made;

bank details for transferring funds.

The court shall attach to the claimant’s petition the documents provided for by the international treaty:

• a certified copy of the court decision;
• a certificate stating that the decision has entered into legal force, if this does not follow from the text of the decision itself;
• a certificate stating that the party against whom the decision was made and who did not take part in the process was promptly and in due form notified of the time and place of the trial;
• a certificate of execution or non-execution of a court decision on the territory of the Russian Federation on the day of filing the petition (for decisions on the collection of alimony - for what period they were collected);
• notarized translation of documents into the language of the state in whose territory the execution of a court decision is requested, if such is provided for by an international treaty.

All documents, including the petition, are certified by the seal of the court.

It should be noted that the issues of verifying the correctness of the execution of applications and their submission to the competent authorities of foreign states fall within the competence of the Russian Ministry of Justice. In this regard, the application must be drawn up in accordance with the established requirements.

When executing decisions made by arbitration courts of the Russian Federation on the territory of a foreign state, the following should be noted.

The Russian Federation is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, June 10, 1958), however, only decisions of commercial courts (permanent arbitration bodies) and arbitrators appointed for each individual case are subject to this Convention.

Arbitration courts operating in the Russian Federation are not such, since, in accordance with Art. 1 of the Federal Constitutional Law of April 28, 1995 No. 1-FKZ “On Arbitration Courts in the Russian Federation”, arbitration courts in the Russian Federation are federal courts and are part of the judicial system of the Russian Federation.

T Thus, if a decision is made by an arbitration court of the Russian Federation, a petition for permission to enforce the said decision on the territory of a foreign state is drawn up in accordance with the requirements of the agreement on legal assistance of the Russian Federation with that state. There is currently no Agreement between the Russian Federation and Germany on the recognition and enforcement of foreign arbitral awards.

In accordance with Part 1 §1061 of the German Civil Procedure Code, the procedure for the recognition and enforcement of foreign arbitral awards is determined in accordance with the New York Convention of 1958, as well as other international treaties on the recognition and enforcement of foreign arbitral awards.

An application for recognition and enforcement of a foreign arbitral award is submitted to the Higher Regional Court at the location (residence) of the defendant or the place of his primary residence or the location of his property or object related to the requirements of the statement of claim, and in the absence of these links - by the Berlin Court of Justice (Part 2 §1062 of the German GPU). The arbitration award or its certified copy is attached to the application for recognition and enforcement. Certification of the copy can also be carried out by a lawyer admitted to participate in trials (Part 1 §1064 of the German Prosecutor General's Office).

According to §1063 of the German Civil Procedure Code, the court resolves the issue of recognition and enforcement of foreign arbitral awards by issuing a ruling and providing the defendant with the opportunity to provide explanations. A ruling on the recognition and enforcement of a foreign arbitral award can be carried out immediately (Part 2 §1064 of the German Civil Procedure Code). This determination can be appealed to the Federal Supreme Court of Germany (§1065 GPU of Germany). An appeal is allowed only in cases where the issues raised are of a fundamental nature or serve to ensure uniform judicial practice, especially if we are talking about a violation of procedural principles or the requirements of public order.

The grounds for refusal to recognize and enforce a foreign arbitration award are divided into two groups: those resolved at the initiative of the parties and those resolved at the initiative of the court.

1. Incapacity of a party to the arbitration agreement.

2. Invalidity of the arbitration agreement.

3. Failure of a party to provide its explanations regarding the appointment of the arbitral tribunal or arbitration proceedings.

4. The arbitration court goes beyond the limits of the arbitration agreement.

Recognition and enforcement of a foreign arbitration award is possible only within the limits specified in the arbitration award. Enforcement for the purpose of collecting interest on the principal debt is possible only if their payment was provided for by the arbitration award.

5. Violation of the procedure for establishing arbitration or the arbitration procedure.

6. Non-binding or cancellation of the arbitration award.

7. Violation of the rules of arbitrability of disputes.

8. Violation of public order.

In case of refusal to recognize and enforce your arbitration award, you have the right to file a claim in a German court to collect the debt from the German company.

Thus, you now need to file a petition for enforcement of the arbitration court decision in Germany, as well as translate all the above documents into German and have them notarized.

I can provide a service for drawing up an application in accordance with the established requirements, as well as provide advice on this issue.

Sincerely, F. Tamara

Debt collection practice
Russian and foreign companies
E.I. Gerasimova,
director of the company "Yurkollegia",
lawyer of the Moscow Interterritorial Bar Association
The purpose of this article is to inform the readers of “National export today” about the prevention of debt, the practice of debt collection and maximizing the amount of claims made against the debtor. The article is based on the experience of lawyers of the law firm "Yurkollegiya" in collecting debts from Russian and foreign companies in Russia.

The main reasons for non-payments are the following: lack of necessary financing, change of owner, change of management of the organization, bankruptcy, dishonesty and fraud.

Efficiency in matters of debt collection from legal entities primarily depends on the financial condition of the debtor. Does your debtor have sufficient assets to repay the debt? The financial condition of the debtor is established on the basis of documented data, including financial statements, and has nothing to do with the debtor’s excuses for lack of money.

Therefore, when choosing a new partner, it is advisable for the creditor to request his balance sheet and determine whether he will be able to pay off the debts in the event of possible dishonesty. Obtaining a balance sheet for several periods will allow you to trace the dynamics of the flow of funds and property and identify positive or negative trends in its financial solvency.

Unfortunately, Russian legislation does not have effective ways to repay a debt if the debtor does not have the assets to repay it. In this case, in practice, criminal prosecution under Art. 159 of the Criminal Code of the Russian Federation (fraud). However, we must remember that the very fact of non-repayment of the debt does not fall under Art. 159 of the Criminal Code of the Russian Federation. Fraud is the theft of someone else's property or the acquisition of rights to someone else's property only through deception or abuse of trust.

Therefore, when choosing a new partner, we recommend asking him for statutory documents regarding the size of the authorized capital, the composition of the founders, and the year of creation. When concluding an agreement with a company created this year with a practically zero balance, your chances of being deceived increase.
If the debtor’s financial condition is satisfactory, the most effective way to repay the debt can be considered repayment through the Arbitration Court. This is the only way that allows you to recover from the debtor not only the amount of debt, but also the amount of damages caused. However, its disadvantage is that the collection procedure through the Arbitration Court takes on average 3-6 months.

When collecting a debt from a foreign company, you need to know the following. Legal proceedings against a foreign company in Russia can be initiated in the following cases: firstly, in the agreement on the basis of which the debt arose, there is a clause stating that disputes are subject to consideration in the Arbitration Court of the Russian Federation of a certain district, secondly, the debtor there is a representative office in Russia.

In order to save time, before applying to the Arbitration Court, in some cases it is advisable to involve regulatory authorities as allies. For example, when it comes to the licensed activity of the debtor, if there are facts of violation of labor and tax laws. In these cases, it may be more profitable for the debtor to pay you off than to create additional problems. It is also advisable to conduct a negotiation process with the debtor if the debtor does not dispute the amount of the debt. If the amount or nature of the debt is, in his opinion, controversial, negotiations are successful in a small number of cases. When calculating the claims against the debtor, it is advisable to maximize it. This approach will allow the creditor to compensate for losses caused by the debtor’s non-payment.

The amount of claims includes the amount of the principal debt, the amount of the penalty provided for in the contract, the amount of damages caused, and the amount of expenses for legal assistance. If we are talking about the debtor’s failure to fulfill a monetary obligation, and the contract does not provide for liability for non-fulfillment, in accordance with civil law, interest is calculated on the amount of the debt at the refinancing rate of the Bank of Russia. Today the refinancing rate is 13% per annum.
In addition to the amount of the penalty, the debtor is presented with the amount of losses caused by its improper performance. Losses are understood as “expenses that a person whose right has been violated has made or must make to restore the violated right, loss or damage to his property (real damage), as well as lost income that this person would have received under normal conditions of civil circulation if his right was not violated (lost profits).” All losses must be documented and compensated by the court, as a rule, to the extent not covered by the penalty.

The new Arbitration Procedural Code of the Russian Federation allows the court to compensate the creditor for the costs of legal services. The amount of claims includes all costs incurred by the creditor for legal support of the collection procedure.

When calculating the amount of claims, one must proceed from the nature and nature of the debt. If the debt is controversial, it is advisable to place the main emphasis on collecting the debt, and if it is recognized by the court, to file an additional claim for the recovery of losses, penalties, etc. Otherwise, you risk losing both.
In practice, there are often cases when the debtor disputes the existence or amount of debt. For example, he does not sign certificates of completed work and believes that the work has not been completed. This position of the debtor is erroneous. If the creditor documents correctly, the debtor will fail in court.

If your debtor is a small, recently created organization, in this case your fears are justified that during the judicial procedure the debtor may transfer its assets to another organization or disappear altogether. In this case, when applying to the Arbitration Court, it is advisable for you to file an application to secure the claim. The court has the right to seize funds or other property belonging to the debtor and located in him or other persons, for example, to seize funds in accounts.

After the end of the judicial procedure, which lasts an average of 3 months, the court issues the creditor a writ of execution - a document that is the basis for forced collection from the debtor.

Collection against a foreign debtor on the territory of Russia is possible if his property is located here. Consequently, the presence of a representative office of a foreign debtor on the territory of Russia is the basis for collection on the territory of Russia. Otherwise, collection must be carried out on the territory of the state where the debtor is located.

The writ of execution is presented by the creditor to the bailiff service - a state body vested with the authority to execute judicial acts. The appointed bailiff has the right to seize all bank accounts of the debtor. In case of insufficient funds in the debtor's accounts
foreclosure is applied to his property.

If the debtor creates obstacles in repaying the debt in the form of clearing accounts, transferring money, transferring property to the creditor after contacting the bailiff service, it is advisable to contact the Ministry of Internal Affairs with a statement to initiate a criminal case against the debtor under Art. 177 of the Criminal Code of the Russian Federation (malicious evasion of repayment of accounts payable). However, criminal liability under this article is possible only in case of malicious evasion of repayment of accounts payable, which is the failure to comply with a court decision that has entered into force if the debtor has the opportunity to repay the debt. Those. the creditor must have facts indicating that the debtor has the ability to repay the debt.
Published in Nation Export Today No. 5 2004