Debt recovery

If you supplied goods or provided services to companies domiciled in Lithuania or selected Lithuania as a place of dispute resolution, and you were not paid, you might get interested in handing this matter to lawyers and getting the debt promptly repaid. On a regular basis, we help local and international companies to collect debts from the Lithuanian residents, when the matter has to be pursued in Lithuania. 

Special consideration should also be given to the fact who your debtor is and what assets are still available. In addition, we are also assisting our clients providing a legal advice in relation to the search of debtor's assets in Lithuania or applying to the court for a freezing order. Finally, we can guide through the whole litigation process and recommend on the specific actions to be taken aimed at the debt recovery. 

Knowledge & Insights

Pre-judicial stage

Before starting formal litigation proceedings, we advise our client on the chances of getting the debt recovered, debt repayment in installments or contemplate whether there may be found any alternative arrangements of getting the debt recovered (e.g. non-cash payments). 

Customary, we approach debtors by sending a demand letter. The letter explains the legal basis, sets the monetary compensations owed. We also explain that failure to pay the fees within the indicated time frame will trigger formal legal actions. Many debtors understand the issue that the dispute will be referred to the court and agree with the claim. This is the cheapest and the most effective way of recovering the debt without being engaged in the costly and sometimes lengthy court proceedings. 

Debt recovery court proceedings

In case the debtor does not agree to settle the debt amicably, we assist in taking the matter to the court further. Our clients would need to issue a power of attorney and instruct us to commence the court proceedings and send certified documents confirming the outstanding debt. Lithuanian legal system permits the claimant to demand that the court fees and legal fees are reimbursed by the defendant. Also, the Lithuanian legal system provides for different forms of proceedings, so we advise on the most effective and cost efficient way. If a defendant decides to defend the case, our lawyers will act on behalf of a client and further represent you in the court proceedings.

Enforcement 

Following receipt of a favourable court ruling, we assist our clients in applying and dealings with a local bailiff. If it is still not possible to recover debt, we support our clients in preparing necessary court documents for opening bankruptcy proceedings.