Bad Debt Settlement

In the realities of modern Russian civil turnover, non-performance or improper performance of contractual obligations is a fairly common phenomenon, and disputes in this category, according to statistics from the Judicial Department of the Supreme Court of the Russian Federation, are the most numerous.

Most major debt collection disputes require careful consideration of the legal position, since the situation may be complicated by the unfair behavior of the counterparty, which withdraws assets, does not pay taxes, and increases large debts to other creditors, including affiliates. These circumstances are just a few of the difficulties that can be encountered when collecting seemingly simple receivables. In such situations, contacting external consultants can prevent significant financial losses.

Applying to the court for collection of receivables is possible only if the pre-trial procedure for dispute settlement is observed. Our experts will help to make a pre-trial claim, provide full assistance in negotiations and contribute to the peaceful settlement of the dispute on favorable terms for the client.

There are various strategies for collecting bad debt. The issue can be resolved out of court through negotiations, debt restructuring, or deferred payment of debt. If an agreement is not reached, the debt is subject to judicial recovery.

At the same time, even a victory in court does not guarantee the execution of the judicial act on part of the counterparty and receipt of funds. After the end of the trial, it is necessary to determine which method of debt collection will be most effective in a particular case: through enforcement proceedings, or by initiating a bankruptcy case (as a general rule, if the counterparty is overdue for more than 3 months and the amount of debt is 300 thousand rubles for legal entities, 500 thousand rubles for individuals).

To choose the most effective method of debt collection, many factors must be taken into account, including the financial condition of the debtor, the availability (absence) of collateral and its type, the number of other creditors, the liquidity of the debtor's property, and so on. Debt recovery through bankruptcy is more time-consuming and costly, but it provides a wide range of tools for recovering assets that have been illegally disposed of from the debtor's estate.

Workout collection is one of the key activities of the Anti-Crisis Group "Pilot". Our experts will evaluate the submitted documents and information, identify possible risks, develop the most effective debt collection strategy and ensure debt repayment on the most favorable terms for the client.