Debt collection

Pre-trial stage of the debt collection

Pre-trial settlement of disputes (pre-trial claim) is solution of dispute with the counterparty before going to court involving gentle way to settle the dispute between business partners. If there is any conflict or if there is a claim for the implementation of agreement obligations, if you cannot agree on agreement terms acceptable to both parties, you should not immediately rush to transfer the case to the court. As our experience show, many disputes, conflicts can be resolved without going to court by preparing the pre-trial claim in the course of pre-trial settlement.

As a rule, pre-trial settlement of disputes can be mandatory or voluntary. There is a special category of cases that are not considered in the court without a document evidencing that before submitting a claim the parties have made an attempt to resolve the conflict in the pre-trial order. This category includes cases concerning amendment and termination of the contract, debt or fine collection, intellectual debates, etc.

Pre-trial settlement of dispute can be carried out independently or with the participation of a neutral party (mediator agent).

 Advantages of pre-trial settlement of disputes:

1. This is the fastest way to resolve the conflict. The trial usually takes much longer.
2. This is the most appropriate and effective way to resolve the conflict, because, first of all, this method of solving the conflict will bring a result that suits both parties to the conflict, second, this method keeps the partnership relations with the counterparty (as the dispute is settled amicably) and third, this method of conflict resolution ensures that the agreements achieved by the parties, as a rule, are accomplished voluntarily and within the time limits agreed.
3. This is the cheapest way to settle the conflict, since the trial always entails legal costs.

Pre-trial settlement of dispute includes:

• information and documents study;
• analysis of the situation based on the documents and information provided;
• assessment of the prospects of pre-trial settlement based on the submitted documents, identification of options for future solutions;
• coordination of the optimal solution of the problem with the Client;
• drafting claims/legally justified response to the claim;
• preparation of the agreements governing the procedure for actions by the parties to resolve the conflict;
• participation in negotiations with the counterparty.

Important:

Our legal firm has an active mediator for the “Center of Mediation and Alternative Dispute Resolution” (http://elmediacia.kz), who works in the field of settlement of disputes (conflicts) arising from the civil, labor, family and other relations with the participation of individuals and (or) legal entities as well as in criminal proceedings in cases of small and moderate crimes.

Trial stage of debt collection

Trial (enforced) debt collection is carried out using the summary, simplified and claim (special claim) procedure and enforcement proceeding. Each stage has its own characteristics and takes some time. The more complex situation with debt repayment is, the more time it will take to resolve it.

Advantages of the trial debt collection:

1. Debt collection in the court is one of the most effective and successful ways to collect debts;
2. You can rely on our sound legal experience, respectable skills, sustainable resources and specialized know-how;
3. We are reducing costs, resources, and investments that would have to be invested in the creation, maintenance, training and development of the internal legal department employed in the collection of overdue debt;
4. Accounts receivable, on which in accordance with the laws of the Republic of Kazakhstan the limitation period has expired, is recognized as bad debt. Availability of the judicial act on debt collection, which has entered into force, can always be paid for execution;
5. Recognition of debt as bad for collection and writing it off from the company balance is one of the tax savings tools which is beneficial for the company.

Important:

Active arbitrator (awarder) for the Center of Arbitration of the National Chamber of Entrepreneurs of the Republic of Kazakhstan, the former head of division of judicial supervision of the Prosecutor's Office of the Republic of Kazakhstan, works in our legal firm.

 Procedure for collecting the debt in trial order:

• studying the dispute situation, preliminary legal analysis and legal opinion about the possibilities and prospects of its solution;
• preparation and delivery of the claim to the debtor, if the contract or the law provides pre-court dispute settlement procedure;
• preparation of the statement of claim (application) for the recovery of debt, collection of materials and bringing them before the court;
• representation of the client’s interests in all courts, including preparation and filing of judicial documents of any kind (comments, objections, petitions, statements, amicable agreements, complaints, etc.);
• Representation of the client’s interests in courts of arbitration and international commercial arbitrations.

Enforcement proceedings

Enforcement proceedings are the statutory procedure for compulsory execution of judicial acts in the order and in accordance with the Law of the Republic of Kazakhstan "On enforcement proceedings and the status of enforcement agents".

In Kazakhstan the enforcement proceedings are assigned to the territorial divisions of the Committee for Enforcement of Judicial Acts of the Ministry of Justice of the Republic of Kazakhstan, as well as to private enforcement agents. The executive documents are the grounds for initiating enforcement proceedings.

Advantages of execution by private enforcement agents:

1. We have stable professional contacts with the most successful practicing private enforcement agents, who have passed a good school of working in the judicial, law enforcement and government agencies of enforcement proceedings;
2.  We have created and developed an efficient infrastructure, which operates in the country and ensures a quick and permanent control for the best result;
3. Using the capabilities of the private enforcement agents allows, in a prompt manner, to ensure the enforcement of judicial acts both in the course of court proceedings and upon entering into force;
4. The judicial act and resolution of the enforcement agent on the impossibility to collect the debt allows to recognize the debt as bad and write it off from the balance sheet within less than three years as established by the tax legislation of the Republic of Kazakhstan that can ensure certain tax benefits to the company.

Judicial acts enforcement services include:

• advising on issues  associated with enforcement proceedings, including protection against unlawful actions (inaction) of the enforcement agents;
• selecting and signing the agreement with the private enforcement agent;
• advancing the private enforcement agent’s activities and current costs related to the enforcement proceedings;
• supporting the execution of judicial acts, control for the private enforcement agent’s activities.
• Former private enforcement agent, a Member of the Management Board of the Regional Collegium of Private Enforcement Agents of Akmola Region, works in our company.