The main ways of receivables collection

 anslaam1Andrew Slabko / US Invest LLC/

The Belarusian legislation provides several ways of receivables collection for foreign companies. Thus, if a Belarusian company has debts to a foreign company this foreign company is empowered to use the following legal means.

Pre-trial claim. This is the obligatory step in the process of receivables collection in most of cases. Sending a pre-trial claim gives a company a possibility to avoid trial proceedings and solve all the contradictions by negotiations.

Executive inscription of a notary. If the debtor acknowledges the debt the foreign company is allowed to ask a notary to issue the executive inscription. One of the biggest advantages of this way of receivables collection is the term of documents consideration – 1-3 days.

Writ proceedings. This is the simplified court procedure without call of the parties in court. The case is considered using the documents only. The term of consideration of documents is 20 working days.

Filing a lawsuit. This is the usual way of receivables collection. Every foreign company is allowed to sue to a Belarusian company. But the legislation restrictions should be taken into account. The term of consideration of a case in an economical court if one of the parties to a trial is a foreigner of a foreign company is up to seven months.

Arbitration. The International Arbitration Court at the Belarusian Chamber of Commerce and Industry is the permanent acting arbitration court which has the status of a non-governmental, non-commercial organization. The term of consideration of a case in the IAC is up to six months and this term could be extended.511

In case of a Belarusian company does not agree to pay confirmed debts to a foreign company the executory process could be started. This is the procedure when authorities identify the debtor’s assets and arrest it for selling to third parties. After this the money are transferred to the creditor.

If your company wants to recover the debts from a Belarusian company our lawyers are glad to provide you all possible assistance.