Debt collection, sale and assignment

In order to start the debt collection procedure, we need the source documents concerning the claim (contract, order, invoice, payment order, correspondence between the parties, etc.).
We analyse the causes of the debt and the debtor’s financial situation. Considering the circumstances of the debt claim and assessing the level of risk, we make an offer to purchase or take over the debt.

We do our best to ensure that the creditor’s debt is recovered from the debtor as quickly and efficiently as possible. To this end, we actively interact with the debtor and the debtor’s representative. We offer the debtor various solutions for paying the debt so that minimum expenses are incurred by the creditor and the debtor. Any costs associated with the collection of the debt place an additional burden on both the creditor and the debtor.
First, we find an out-of-court agreement with the debtor for paying the debt – by drawing up a payment schedule and an acknowledgement of obligation, with preference to the notarised form. This document is also an enforcement instrument giving the right to turn to a bailiff to initiate and conduct enforcement proceedings. Also, a notarised document allows securing the amount owed by the debtor with an additional security (mortgage on immovable property, movable property, registered property, etc.).

If no agreement is reached with the debtor or the debtor avoids the claimant, we will file a statement of claim with a court to enforce the claim. An action is time-consuming and resource-intensive, resulting in additional costs for both the creditor and the debtor. A state fee must be paid, and sometimes a deposit, as well as costs for legal assistance. If a court orders payment of a debt, the debtor, as a rule, bears the costs incurred.
We recommend avoiding court proceedings because these are burdensome for all parties.

If you have an enforcement instrument (court judgment, notarized acknowledgment of obligation, payment order, etc.), we will help the creditor file an enforcement application to the bailiff both in and outside Estonia. As part of the enforcement proceedings, we actively communicate with the bailiff so that the claim can be enforced as quickly and efficiently as possible. This is where we verify the debtor’s assets and other rights of claim to which the claim can be enforced within the enforcement proceedings.

If there is an enforcement instrument and if the enforcement proceedings are impossible, we will file a bankruptcy petition against the debtor to court. An enforcement instrument does not always have to be the starting point for filing for bankruptcy – an invoice or contract, for example, which is clear and uncontested, is sufficient.

We are different from other collection companies in that we find solutions to seemingly impossible situations as well.
We will do the difficult things straight away and the impossible ones will take some time.

Authorisation agreement – with this agreement, you assign us to collect your claims. This means we will collect the debt from the debtor on your behalf and on the basis of an authorisation.

Claim assignment agreement – with this agreement you assign your claim against the debtor to us and we will take your place as a creditor. We will then collect the debt from the debtor on our own behalf.

Claim purchase agreement – we only buy the debt claims that have not expired. You do not have to spend your energy and resources on any payment issues but can instead direct the amount received from the sale of the debt to your company’s current assets.

We acquire claims both as a debt portfolio and as individual claims. The claim to be acquired must not be expired, it must be clear and there must be no dispute concerning the claim.

Together, we will decide on the best way to sign an agreement (on the basis of a claim purchase, assignment or authorisation agreement). The agreement we reach is fixed in the contract and authorisation signed between us.