In case if you have faced the situation when a Ukrainian company does not want to pay to you or to your company the debt, we can provide you with our services of Ukrainian attorney’s debt collection and a lawsuit against an unscrupulous Ukrainian contractor. Our attorneys have more than 10 years of experience in commercial litigations, including pre-trial settlement and dispute resolution. We always find the fastest and the most appropriate way to affect the Ukrainian debtor.
We provide the following services in order to claim back funds from the Ukrainian company:
- juridical analysis of available documents and the general situation;
- studying the Ukrainian debtor;
- negotiations and communication with Ukrainian debtor;
- commercial lawsuit processing;
- making the attorney’s request to the debtor and/or to Ukraine official authorities;
- procuring the seizure of the assets;
- enforcement of Ukrainian court decisions.
General information about debt collection in Ukraine
Unfortunately, due to not perfect Ukrainian legislation, foreign companies from time to time deal with unscrupulous partners in Ukraine. Such companies can not or do not want to fulfill the duties and obligations under the agreement or a contract. Sometimes we face cases of opened fraud from the side of Ukrainian companies, mostly as “suppliers” of goods. Such companies offer a cheap price for the goods, ask for an advanced payment (100% is not a rare request) but get lost after receiving a money transfer under the invoice. The problem in Ukraine is that not always such suppliers can have a criminal prosecution as it is not so easy to confirm that it was a business and not just cheating. Although depending on the documents, invoice(s), and information it is possible to convince the prosecutor or police that it was not the supply and it was cheating.
Consider that first of all it is necessary to make a pre-trial settlement and properly request the debtor to pay back the funds with the penalty if any is mentioned in the contract. Also, it is necessary to keep the timing and give the debtor some period in order to perform his duties. The request shall be made in a certain form including many formalities.
The procedure of debt collection in Ukraine is to be processed under Ukrainian legislation. In case of litigation, the lawsuit is processed at an economic (also called as commercial) court in Ukraine. In most cases, it is necessary to pay a court fee which is 1,5% of the amount of debt. This payment shall be done in order to make the Ukrainian commercial court of law to launch the trial. At the same time, in case if there are grounds to consider the failure or bankruptcy of the debtor, or in case if there are enough reasons to suppose that the Ukrainian company is removing (or is going to remove) the assets, it is worth to make a petition to the court to freeze the assets of that company. In such a case the petition shall be cogent and properly convincing. Freezing of debtor’s assets is the way to securitize the risks of the obligee.
During the commercial trial, the Ukrainian court verifies the documents, the explanations, information, provided by the plaintiff, and decides on the trial start.
What other legal processes can be done against the Ukrainian debtor?
In case if the debtor refuses to pay back the funds or to fulfill his other obligations and if you feel that from that there was no intention to do it from the very beginning, it is worth considering to launch a criminal prosecution in Ukraine. If the circumstances allow, we consider that the way to influence the rouge as quite efficient. In order to evaluate if there were attributes of cheating and/or fraud, it is necessary to do the following:
- Check Ukrainian supplier‘s company. Actually, this shall be always done before signing a contract. In case if the supplier had no needed to fulfill his obligations under the contract (as of the day when the contract was signed and/or on the day when the obligation had to be performed), this can be one of the grounds to blame him in fraud. Even based on the information from the opened sources of information, it is possible to evaluate this issue.