The Serbian creditors are advised to hire a debt collection agency in case the outstanding liabilities of certain corporate bodies or individuals cannot be recovered. There are actually three types of debt collection agencies in Serbia:
- the debt collection agency which is in fact a subsidiary of the creditor in charge with recovering the debts,
- independent debt collection agencies which are third party agencies and they are hired to recover the debt,
- the debt purchase agencies which buy a part of the debt and try to recover it from the debtor.
Usually these agencies are advantageous as the payment usually consists in a percentage of the recovered debt. Our lawyers in Serbia can help you recover your debts through amicable procedure or litigation.
Stages of debt recovery in Serbia
There are two stages of debt recovery
: through amicable procedure
and through litigation
In the first stage, the agency or the law firm in Serbia contacts the debtor via the phone and tries to convince it to pay the liability. A notification is also delivered to the debtor containing the name and address of the creditor, details regarding the outstanding amount, the ways of depositing the claim and the consequence of not delivering the amount of money on time (facing legal actions).
If the creditor agrees, the amount can be paid through installments or the term for paying it can be extended. In some particular cases, a smaller amount of the debt can be paid by the debtor if it agrees to pay it in a short period of time.
If the debtor doesn't pay the liabilities at this stage, the debt collection agency will start to prepare the necessary documents for the lawsuit: the contract between the parties, the overdue invoices, a statement reflecting all the actions related to the invoices and a proof that those invoices were delivered on time to the debtor.
The judge will gather all the necessary information and, based on that, will decide when to hear both the debtor and the creditor. The decision he/she takes is enforceable and must be put into practice immediately. If the judgment is in favor of the claimant, the expenses related to the process are input to the debtor, this adding to the already outstanding liability.
A bailiff puts into practice the decision taken by the court, usually by seizing the debtor’s assets and auctioning those in order to cover the claims.
If the debtor doesn’t have sufficient assets to cover the liabilities, the process of insolvency can be initiated. In this case, an insolvent entity cannot perform any commercial activity in the future until the claims are settled.
Types of debts in Serbia
There are two types of debts in Serbia which can be claimed. These are the following:
• Monetary claims – the debt can be collected through the selling of personal property, real estate sales, transfer of credit for the submission of movable or immovable property, the transfer of monetary claims, liquidate other property rights of the owner/shareholders of a Serbian company, transfer of funds kept in bank accounts, sale of stakes and shares of a company;
• Non-monetary claims – this type of debt collection includes the handing over personal property, the evacuation and transfer of immovable property, enrollment in public records and obtaining statements will, the enforcement of the obligation acts, enforcing decisions from family relations and the execution for the reinstatement of the employee to work.
In order to collect these types of debts, appropriate means of evidence are required within the process. The business cooperation between parties and the existence of monetary and non-monetary assets and liabilities are usually proved through private documents. These documents may represent:
• written and signed contracts;
• business offers;
• declarations of acceptance of an offer;
• declaration of business cancelation or termination;
• final enforceable decisions.