Recovery Strategies for Claims Involving Lithuanian Counterparties – 2025 Legal Insight

In 2025, cross-border commercial disputes involving Lithuanian companies continue to follow a formal and document-driven procedural framework. According to filings monitored, the number of debt recovery applications submitted by foreign creditors has increased compared to 2023, with increase in references to the European Order for Payment Procedure and the European Small Claims Procedure in recovery strategies. While enforcement in Lithuania through bailiffs remains efficient, successful recovery continues to depend on precise compliance with procedural requirements from the outset. As a result, foreign creditors increasingly evaluate procedural options beyond ordinary litigation, particularly in aviation, leasing, logistics, IT services and commercial supply-chain matters.

Typical Dispute Profiles

The majority of cross-border disputes involving Lithuanian entities arise from unpaid commercial invoices, supply and service agreements, leasing instalments, equipment rental arrangements and commercial property service charges. These disputes typically relate to sectors such as maintenance, component support, logistics outsourcing and IT service provision. In many instances, the underlying contractual obligation is not disputed, but payment is delayed or not prioritised, prompting creditors to initiate formal recovery measures.

National Court Remedies Under Lithuanian Law

Lithuanian procedural law allows creditors to apply for a national payment order for uncontested domestic claims, enabling an enforceable order to be issued within a short procedural timeframe where documentation is clear. Where a dispute is likely or already raised, creditors must proceed with ordinary civil litigation, which usually involves a full evidentiary phase and can extend for several months before the commercial division of the court. In practice, interim protective measures, particularly ex parte asset freezing orders, are frequently used to secure the creditor’s position while proceedings are ongoing and may be granted by Lithuanian courts without prior notification to the debtor.

European-Level Procedures as Procedural Alternatives

For cross-border commercial claims, some creditors choose to initiate proceedings through the European Order for Payment Procedure (EOPP). Established by Regulation (EC) No 1896/2006 and directly applicable in Lithuania under Article 288 TFEU, the procedure enables the creditor to request an enforceable order without commencing full litigation, provided that no formal objection is filed by the debtor. All EOPP applications involving Lithuanian entities are considered by the Vilnius District Court. If no opposition is submitted within thirty days, the order becomes enforceable and may be forwarded to a bailiff for execution.

Where the amount in dispute does not exceed EUR 5,000 and a degree of procedural dispute is anticipated, some parties make use of the European Small Claims Procedure (ESCP) under Regulation (EC) No 861/2007. Proceedings are conducted in writing, allowing for a streamlined formal process and a shorter documentation cycle than traditional litigation.

Initiation of Insolvency Proceedings

Another procedural option available to creditors is the initiation of insolvency proceedings. Under Lithuanian law, a creditor may petition the court to open insolvency proceedings where a commercial debt exceeding EUR 3,000 remains unpaid for more than thirty days after its due date. Such applications are not always filed with the objective of liquidating the company. In practice, the procedural consequences associated with insolvency status — including restrictions on asset disposal and the potential personal liability of management — can lead to accelerated settlement discussions shortly after the filing is submitted.

Arbitration and Enforcement Strategy

Where contracts contain arbitration clauses, disputes are often resolved before the Vilnius Court of Commercial Arbitration or international institutions such as ICC or VIAC, with Vilnius commonly chosen as the seat. Arbitral awards are enforceable in Lithuania under the New York Convention. In parallel, creditors may apply for interim protective measures before Lithuanian courts to secure assets while arbitration is pending.

Strategic Considerations for Cross-Border Creditors

As cross-border enforcement activity involving Lithuanian companies becomes more structured, it is increasingly important for creditors to ensure that contracts contain clear jurisdiction, enforcement and interim protection provisions compatible with both national and European procedural mechanisms. Creditors preparing their claims so that they can be adapted, where necessary, from a European procedure into standard Lithuanian litigation tend to maintain procedural continuity without delays. Early involvement of local counsel assists in aligning documentation, procedural timing and enforcement steps.

Market Note and Practice Insight

Based on mandates handled in 2024–2025, Sulija & Partners Law Firm Vilnius has observed increase in procedural references to EOPP and ESCP by international creditors pursuing commercial claims against Lithuanian entities. These mechanisms are increasingly considered at the planning stage of enforcement, particularly in leasing, service agreements, cross-border supply contracts and commercial service relationships. While Lithuania maintains a conservative and strictly procedural litigation environment, practice indicates that creditors who structure their approach in line with local enforcement expectations — including the timely use of interim measures, insolvency filings or coordinated European procedural steps — tend to preserve procedural leverage more consistently.

In this context, Sulija & Partners has been advising international lessors, financial institutions and commercial suppliers on documentation alignment, debt recovery and enforcement coordination with Lithuanian courts and bailiffs. The firm’s experience in cross-border mandates has allowed it to develop structured procedural strategies that maintain enforcement continuity across European-level procedures and national litigation frameworks.

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