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Debt Collection in Serbia

Debt Collection in Serbia

Updated on Sunday 26th January 2020

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Investors from abroad can easily set up companies in Serbia regardless of the type of structure and the field of activity. In this direction, our lawyers in Serbia can handle the legal aspects of the registration process with respect to the applicable laws for foreign investors. It is good to know that there are cases in which companies can face financial struggles and cannot pay the debts. A debt collection agency in Serbia can help creditors recover the money, but the entire process can be properly supervised by our advisors in Serbia.

 

What is the definition of debt in Serbia?

 
The meaning of debt is connected to the natural persons or companies in Serbia who did not pay certain sums of money for creditors. These debts can be recovered with complete legal support offered by our Serbian attorneys who can commence, in the first instance, the amicable procedure of a debt collection.

 

Types of debt collection agencies in Serbia

 

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.
 
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. Usually, these agencies are advantageous as the payment usually consists of a percentage of the recovered debt. Our lawyers in Serbia can help you recover your debts through amicable procedure or litigation. Those interested in other aspects like obtainig an EORI number can talk to one of our advisors.

 

What are the stages of debt recovery in Serbia?

 

There are two stages of debt recovery: through the 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 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.
 

Debt collection through litigation in Serbia

 
If the debtor does not agree to pay the liabilities at this stage, the debt collection agency will 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, thus 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.
 

 The amicable procedure of debt collection, step by step

 
The amicable method of recovering the money in Serbia is the first recommendation, no matter if it is applicable for natural persons or companies. There are certain steps which stand at the base of the amicable debt collection procedures, and these are:
 
  • debtors (companies or individuals) will be notified that there are payments to be respected in the stipulated period of time;
  • debt collection agencies in Serbia will then communicate via the email or by telephone with the debtors;
  • a periodical communication is then established between the creditors and the debtors in Serbia, in order to legally recover the amount of money;
  • an additional document to the contract can be signed by both parts if an agreement for debt collection recovery has been accepted.

 

We remind that we can handle the amicable procedure for debt collection in Serbia, so please do not hesitate to get in touch with our advisors.

 

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, 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, dispatches, invoices or final enforceable decisions.
 
For more details about the liquidation of a company, don't hesitate to contact our team of attorneys in Serbia.