Dear guests!

My name is Dmitrii Pekarnikov and I have been collecting debts from companies operating in the Russian Federation for over 20 years.

In the Russian Federation collecting debts consists of successive stages:

- sending the claim to the debtor to voluntary pay debt.

It is crucial that such claim is sent to the debtor's official address as listed in the Russian Unified State Register of Legal Entities (EGRLE).

- receiveing judgment of the court and the writ of execution.

There are two different court systems in the Russian Federation: courts, which solve issues between individuals, and commercial courts, which solve issues between companies. Before asking a marshal to assist in enforcement of the court judgment, you shall receive the writ of execution when the judgment entry into force.

- enforcining recovery, including marshal services.

You are free to send a writ of execution to the bank where the debtor has an account. If this was unsuccessful, you can ask a marshal to start enforcement proceedings against the debtor. The marshal will seize all the debtor's accounts and assets.

- bankruptcy.

In case that the debtor does not have assets to pay off the debt, the creditor has the right to initiate bankruptcy proceedings. During the bankruptcy procedure, it is possible to check the debtor's activities for the previous 3 years.

Here are a few words about the bankruptcy process.

The bankruptcy procedure in the Russian Federation is regulated by the Federal Law "On Insolvency (Bankruptcy)" No. 127-FZ dated October 26, 2022 (with numerous amendments). But not only. There are also a lot of judgments of the Supreme Court of the Russian Federation on general bankruptcy issues and on particular disputes.

Before you start bankruptcy proceedings, you need to take a few preparatory steps. First of all, to get a judgment. It is impossible to start a bankruptcy procedure in the Russian Federation without a preliminary judgment. (Bank loans are excluded, including loans from foreign banks).

Secondly, on a state website that publishes information about legally significant events in companies' lives, publish an announcement that you intend to file application for bankruptcy. Only after 15 days of the publication of such an announcement, you may file a bankruptcy application for the company.

Cases involving bankruptcy of companies are heard by commercial courts.

In Russia, it is quite easy to open and liquidate a company. Therefore, often when debts arise, instead of paying off the debts, a new company is incorporated, into which assets are transferred, and the debtor's company is simply left without property or liquidated. In some cases, fraudulent entrepreneurs create a business scheme for a group of companies. In this scheme, debts are received by a company without assets, and assets are concentrated on another company. Thus, after receiving judgment to collect a debt, you can find that the debtor's company does not have assets to pay off the debts.

In this case, bankruptcy of the company may help. Initiation of bankruptcy proceedings against the company allows you to evaluate its activities for previous years and, in case of detection of illegal actions to withdraw assets, return them and collect the debt.

In addition, one of the most effective mechanisms for debt repayment is to bring company executives to vicarious liability for company debts.