Recovery of Debt Under a Contract
Since 2008, the “First Legal” Law Firm has been successfully operating to protect its clients’ interests. The specialists of our Firm have extensive experience in resolving disputes regarding the recovery of debt under contracts both out of court and through the courts. By choosing us, you will receive top-level service and be assured that professionals of the highest caliber are protecting your interests.
In the process of fulfilling concluded contracts, issues often arise concerning one party’s improper performance. Consequently, disputes involving the recovery of monetary debts (for goods, work, or services), the recovery of penalties (fines, late fees), or compensation for damages (including lost profits) constitute the most common category of disputes in legal practice.
The general principle of resolving disputed issues through negotiations does not always lead to the desired result, and it then becomes necessary to protect one’s violated rights in another way—by filing a lawsuit. When turning to the court, it is important to have clear documentary evidence of the debt, i.e., the counterparty’s improper performance of their obligations under the terms of the contract.
It should also be noted that a debtor is not released from liability for the inability to fulfill a monetary obligation. At the creditor’s request, the debtor is obliged to pay the debt, taking into account the established inflation index for the entire period of delay, as well as three percent annual interest on the overdue amount unless the contract or law specifies a different interest rate.
If a penalty is stipulated by the contract for a breach of obligation, it is subject to full recovery regardless of compensation for damages; however, the contract may establish an obligation to compensate damages only to the extent that they are not covered by the penalty, or stipulate the recovery of the penalty without the right to claim damages, or allow the creditor to choose between recovering a penalty or seeking compensation for damages.
As we can see, the legislator imposes a number of mandatory requirements but also provides quite broad opportunities for the parties to voluntarily define contract terms other than those provided by current legislation. Moreover, for high-quality preparation of a statement of claim, it is necessary to correctly calculate penalty amounts and damages, as well as accurately substantiate the cause-and-effect relationship and the legal basis for the claims. Therefore, in many cases, it is impossible to proceed without professional legal assistance, and promptly seeking such assistance from the “First Legal” Law Firm will prevent mistakes and help save time and nerves.
The services provided by the “First Legal” Law Firm in representing individuals in disputes regarding the recovery of debt under a contract include:
- Legal analysis of all necessary documents provided by the client;
- Preparation of a legal position and coordination of it with the client;
- Collection of evidence (including through attorney requests);
- Preparation and filing of the statement of claim with the court, assistance in paying the court fee;
- Consultation on the procedure for enforcing the court’s decision.
By agreement with the client, the “First Legal” Law Firm can also provide professional legal assistance from an attorney during court hearings, as well as in appellate or cassation proceedings.
The attorneys of the “First Legal” Law Firm will take on the burden of gathering all the necessary evidence. If needed, the specialists of the “First Legal” Law Firm are also competent to represent the client’s interests during enforcement proceedings.