Contractual relations today have long become the norm. Organizations or individuals conclude agreements on the performance of a particular work, the provision of services, the supply or sale of products, and sometimes they simply borrow money on certain conditions. But the parties do not always properly fulfill their obligations. A conflict arises that requires immediate resolution. Otherwise, the injured party has the right to demand compensation for losses incurred. The controversial issue can be resolved peacefully. But often the parties do not find mutual understanding, as a result of which one of the parties to the conflict is forced to seek help from the competent authorities. Debt collection in court in this case is the only way to restore justice. Such work is done by special legal services or law firms.
There are two categories of debt between the parties:
- The parties to the conflict are individuals, in this case, the issue boils down to the return of funds borrowed for a specified period. The fact of debt must be confirmed by a receipt or loan agreement.
- The debtor and creditor are legal entities, and the amount of the debt was formed as a result of failure of one of the parties to fulfill their obligations under the previously concluded agreement. If the company has its own lawyer, then it can independently represent itself in court.
Debt collection in court begins with a study of the documents, on the basis of which a statement of claim is then drawn up. In it, the creditor must argue its claims against the debtor. Not every lawyer can correctly make such a statement, so in this case it is better to seek help from a lawyer who specializes in such matters. A properly written statement of claim is half the battle. An experienced lawyer should study all the materials and try to comply with the pre-trial procedure.
To begin with, the debtor needs to carry out the necessary claim work. A reconciliation statement must be drawn up confirming the presence of debt. This document will confirm the fact of debt. Together with the contract itself, it will be the main evidence in court. If one of the parties refuses to sign the act, then the creditor must have confirmation that the document has been repeatedly sent to the debtor. This can be a mail receipt for sending registered mail with a copy of the letter itself.
There is one more aspect that needs to be taken into account in order for debt collection in the court to be successful. This is the statute of limitations. As you know, collection is possible only within three years from the date of debt formation. At the end of this period, collection becomes practically impossible. This is used by many debtors. They in every possible way postpone the payment time, delay the signing of acts, trying to reach the point of expiration of the limitation period. In such a situation, not one, even the best lawyer, can do anything.
There is also such a situation: at the time the lawsuit was filed, the debtor was insolvent. Then even if all the documents are prepared correctly and submitted on time for consideration, it is almost impossible to hold him accountable. And sometimes debtors are quite enterprising and try to hide existing assets. Therefore, it is necessary to carefully study the financial situation of the debtor company in advance and only after that take any action. If a case has already been made, and the creditor has a fear of being deceived, he may petition for the adoption of necessary measures to the debtor. In this case, the court has the right to seize the property, as well as all accounts of the debtor company, thereby preventing the concealment of available funds. The "unlucky debtor" is deprived of any choice, and debt collection in court acquires real prospects.
But these procedures can be avoided if you assess the situation in time and make the right decision. Debt collection in court is a necessary measure. It is usually resorted to in cases where a compromise between the parties is not possible. But even after filing the documents with the court, you can avoid unnecessary expenses by concluding a peace agreement. A person should always be guided by common sense and not neglect the possible benefits.
A similar situation occurs when the creditor and the debtor are individuals. Often in life there are times when you want to buy a thing, but there is not enough money to buy it. Some in this case apply to the bank for a loan. But when returning the taken amount, it will be necessary to additionally pay certain percentages. Therefore, most people prefer to borrow from relatives or acquaintances. When making such a transaction, a loan agreement or receipt must be drawn up. From a legal point of view, of course, a contract is preferable. But a receipt can also be a good guarantor and a weighty argument in court. Only it should be compiled accordingly: with the exact details of the parties, the amount of the loan, the name of the currency in which it is provided, and the repayment period. And the most important thing is that you need to have a complete picture of the person to whom you are giving your money. You need to be completely confident in its solvency and decency. Otherwise, you cannot escape litigation.
Sometimes people borrow money with the clear intention not to repay them. They can mislead the lender by overestimating their income in words or by referring to the ownership of expensive property. As a result, it turns out that the property actually belongs to another family member or is under arrest, and therefore can not act as a guarantor of repayment of the debt. Debt collection under the contract in this case may be difficult. Sometimes the situation is quite the opposite. A person has the necessary funds to repay the debt, but hides them. This again emphasizes the fact that you need to collect as much information as possible about who you are going to lend money to. Otherwise, the return procedure remains the same as in the case of legal entities. First you try to agree, then you make a statement of claim, and only then the court makes a competent decision.