Collection of receivables

The development of any business involves the conclusion of a number of different kinds of agreements with counterparties and government organizations. It is extremely difficult to completely protect yourself from the occurrence of accounts receivable. But bad debts threaten the stable work of entrepreneurs. Therefore, this issue should be taken seriously. Let's take a closer look at what is and how the debt collection procedure takes place.

What is collection of accounts receivable: concept and essence

Under the accounts receivable is understood the financial asset of the company, which appears as a result of contractual relations between the parties. It represents the amount of payment that has not yet been received at the date of delivery of products, provision of services or performance of work.

It follows from this that the collection of such a debt is a procedure aimed at obtaining by an enterprise the funds owed to it by debtors. Such debt is also called contractual.

Main causes of accounts receivabledebtors

There are various reasons whyare delaying the payment of their debts. Among the most common are the following: the

  • inability to fulfill the obligation at the date of its occurrence;
  • low payment discipline of one of the parties;
  • lack of experience in checking the reputation and reliability of customers;
  • fraudulent actions by counterparties;
  • force majeure.

Types of receivables and their features.

Debt can be classified according to various criteria. So, based on the sources of its occurrence, distinguish between debts:

  • for goods or services;
  • on bills;
  • on refund of value added tax;
  • to compensate for losses and shortages;
  • accountable persons, etc.

In addition, debt is long-term and current. The latter arises during a normal operating cycle and matures within 12 months from the balance sheet date. But the long-term does not arise under normal circumstances, and, accordingly, it takes more time to pay off.

Thus, the obligation can be overdue or not overdue. It is the overdue debt that poses the greatest danger to the enterprise. It is also divided into separate types:

  • doubtful;
  • real;
  • hopeless.

Doubtful - this is when the debtor not only delayed the payment, but also did not provide it with a pledge, surety or guarantee.

Real - this is when payments for a transaction are secured by a guarantee, pledge or contract.

And the debt, in relation to which there is confidence that the debtor will not return it, or the limitation period for which it has passed, is called hopeless. To recognize it as such, there are a number of signs:

  • expiration of the limitation period;
  • the debtor is declared bankrupt or is in the process of liquidation;
  • non-repayment of debts in full at public auction, if all other actions of the creditor did not have a positive effect;
  • the onset of force majeure;
  • the debtor died, was declared missing or sentenced to imprisonment.

What does the procedure for collecting receivables include?

There are several stages of collection of receivables:

  • pre-trial;
  • judicial;
  • actual.

After identifying overdue debt, it is worth taking all steps to resolve the issue out of court. If the negotiations do not bring the desired result, they make a claim. It is a written claim by the obligee for the debtor to fulfill his obligation, as well as compensation for the damage caused.

The document does not have a single unified form. The main thing is to refer to all the norms of the law, as well as attach all the materials on the basis of which this obligation arose.

If the counterparty did not react in any way to the claim, or refused, it will be necessary to initiate legal proceedings. At the same time, we recommend that you keep the evidence that you made attempts to resolve the issue peacefully.

Lawyer services for the collection of accounts receivable in Ukraine

UA "Absolut" provides services in the Dnieper, Kiev and other cities of Ukraine, if you need help with the collection of accounts receivable. The range of our services includes:

  • legal advice on any legal issues related to the occurrence of debt;
  • preparation of procedural documents;
  • assistance in pre-trial settlement of the dispute;
  • full legal support in court proceedings;
  • support of enforcement proceedings.

It is important to understand that the terms of going to court are limited - 3 years from the date of the delay. Therefore, you need to act quickly and competently. Our lawyers guarantee the high quality of the services provided at competitive prices.

Preparing an application for going to court

Before writing a claim, you should define the clauses of the agreement that establish:

  • legal relations between the parties;
  • subject of the contract;
  • settlement procedure;
  • the right to claim;
  • application of penalties.

Your claims should be supported by reliable evidence. These can be debt calculations, acceptance certificates, acts of work performed, invoices, reconciliation reports, etc.

Also, the claim should indicate all calculations, including the amount of penalties, inflationary costs.

Submitting an application to the court for the return of receivables

Our lawyers will also help you to correctly determine the jurisdiction of your case. Indeed, when it comes to debts, such disputes can be considered both in the order of civil and economic production.

In the case of legal entities and individual entrepreneurs, an application must be submitted to the economic court. At the same time, do not forget that for this there is an obligation to pay a court fee!

Consideration of an application in court: peculiarities of the procedure

Litigation is an important part of the process, the results of which largely depend on the quality of the work carried out in advance. Therefore, it is important to enlist the help of qualified lawyers.

During the court session, the judge hears the testimony of the parties, considers the evidence provided. Based on this, it makes a decision, which determines the amount of funds to be collected, including the amount of the principal debt, the amount of losses, penalties and interest.

In case of receiving an unsatisfactory decision, it can be appealed to the appellate instance.

logical completion of the debt recovery process is the execution of the court decision, which came into force, by the executive authorities. The contractor levies execution on all the debtor's funds deposited in the accounts of banks and other financial institutions. If the person does not have enough such funds, the collection takes place at the expense of his property.

Our lawyers will help you avoid financial difficulties and get everything that unscrupulous counterparties owe you!

Почему сотрудничество с нашей компанией — правильное решение ?
Absolute одна из ведущих компаний Юго-Восточного региона Украины с более чем 10-летним опытом.
В каких сферах наша компания предоставляет юридические услуги ?
Работаем в сфере хозяйственного, корпоративного, инвестиционного, налогового,уголовного, таможенного, антимонопольного, административного и международного права.
Какие компании находятся в списке наших партеров ?
В списке партнеров такие компании: OTP банк; ПУМБ; UESF; ЮЖМАШ; Nemiroff.
Какой залог успешной работы в юридической сфере ?
Залог успешной работы: Высокий профессионализм; Персональный подход; Полная конфиденциальность; Работа на результат.