Debt Collection Agency Lithuania
Amicable Debt Collections Lithuania
1. General information
Cosmopolite Collections follow a collection process that is professional at all times with the objective of retaining the relationships between our clients and their debtors whenever possible. Our staff of collection professionals carry out the first collection tier in-house. We relentlessly pursue debtors verbally and in writing within the bounds of federal and state laws.
1.2. Local agents
We offer a field service for visiting debtors in Lithuania. The purpose is to collect monies, negotiate settlements, get an acknowledgement of the debt and gather information about the debtor’s financial situation, residence and place of business. Our client will receive a report with all the information about the visit and a recommendation of the next step for the case. The price for visiting debtors in Lithuania is between EUR 300 and EUR 850.
Cosmopolite Collections always charge interest to debtors calculated from the base rate set by the Bank of Lithuania plus 8% per year. This rate is fixed twice a year on 1st January and 1st July. From a cultural point of view, Lithuanian debtors are only used to paying late payment interest if this is agreed in writing between the client and the debtors.
1.4. Debt collection costs Lithuania
In Lithuania, debt collection costs are chargeable to debtors, representing the creditor’s claim for late payment.
2. Legal collections Lithuania
2.1. General information
Entering into legal proceedings is only possible with a written notice warning the debtor before assigning the file to court.
2.2. Required documents
In order to apply the legal proceedings, Cosmopolite Collections need copies of the contract, invoices and a clear statement of account indicating payments and credit notes that have been booked regarding the outstanding invoices. In the case of a regular lawsuit procedure, copies of the complete contractual documentation should be available starting with the contract, orders, order confirmations, delivery notes and invoices. Basically, every step of the trading relationship should be provable by documentation. In case of dispute, proof of the conversations between the creditor and the debtor should also be kept and provided to our lawyers.
2.3. Lawsuit in Lithuania
The regular lawsuit procedure is either initiated directly after the amicable collection failed due to a dispute by the debtor or directly after the legal dunning procedure after the debtor appealed. Usually a written pre-procedure is issued. Both the plaintiff and the defendant exchange opinions and proofs by letter until the judge has the impression of having all relevant information needed in order to judge. In this case, a hearing is scheduled, during which both parties have to be present. After the oral hearing, the judge sets a date to publish the final judgment. The parties will be informed about the outcome in writing by the responsible court.
2.4. Debt collection costs Lithuania
Costs of the civil law procedure depend on the outstanding principal amount and are calculated proportionally.
here are different fees that can apply during the procedure, so there is not only a range regarding the outstanding amount but also a range regarding the possible fees for each action, making it difficult to predict the total cost.
In addition to this, costs of witnesses and/or experts might also arise. A cost estimation will be provided case by case should legal action becomes necessary.
2.5. Expected time frame
The average duration of a simple legal process is between three and four months, whereas a court procedure can take up to 12 months or longer depending on the complexity of the case and the availability of the judge and lawyers on all sides.
2.6. Interest and costs in the legal phase
Extrajudicial interest and costs can be claimed as part of the outstanding balance during the legal procedure. Normally the losing party has to bear the costs, or at least part of the costs of the legal proceedings if the case goes to trial. The judge will make decision based on the circumstances of the case. In case of a legal settlement, the parties normally bear their own costs for court fees and lawyer fees.
3. Insolvency proceedings
3.1. General information
The aim of the insolvency proceedings is to pay out all creditors with the same quota by liquidating the assets of the debtor company or collecting the enforceable income of the individual who is declared bankrupt.
After the debtor or a creditor files for insolvency of the debtor, a preliminary liquidator is appointed to check if sufficient assets are available to cover the costs of the proceedings (court costs and costs of the liquidator).
If these costs are deemed to be covered, the insolvency proceedings start and a liquidator will be appointed; usually this is the preliminary liquidator.
Otherwise, the court will reject the declaration of bankruptcy due to insufficient assets.
After the proceedings start, lodging claims is possible within a given deadline. The liquidator can either accept a lodged debt or dispute it. If the claim is disputed, the creditor may only file a claim in court to prove the justification of their claim when further documentation does not convince the liquidator to confirm the debt.
At the end of the proceedings, all creditors with confirmed debts will receive a dividend if there are enough assets in the estate. Often the insolvency estate is closed with a very small or no dividend at all.
3.3. Required documents
In order to lodge a claim in undisputed claims, Cosmopolite Collections need copies of the invoices and an original signed power of attorney.
3.4. Expected time frame and outcome
The deadline to lodge claims is one month from when the announcement has been issued. The whole duration of an insolvency procedure is between six and 12 months at a minimum.
Lithuania is a country located in Northern Europe, with a population of around 2.8 million people. The capital city of Lithuania is Vilnius, and the country is divided into 10 administrative regions. Lithuania is a unitary parliamentary republic with a president as the head of state and a prime minister as the head of government. The official language of Lithuania is Lithuanian, and the currency is the Euro.
Collecting business debts in Lithuania can be challenging for foreign businesses, as the legal system and procedures for debt collection may differ from those in other countries. It is generally advisable to seek the assistance of a local debt collection agency or lawyer who is familiar with the legal and cultural specifics of the country.
There are a number of debt collection agencies operating in Lithuania, and the industry has been present in the country for many years. One of the main credit bureaus in Lithuania is the Credit Information Bureau, which is a government agency responsible for maintaining a database of credit information for individuals and businesses in the country. Some of the private credit reporting companies operating in Lithuania include Experian, Equifax, and TransUnion.
In Lithuania, debt collection laws are generally the same throughout the country, although local laws may also apply in some cases. It is therefore important for creditors to be familiar with the relevant laws and regulations in order to ensure that they are able to effectively collect their debts.
There are several benefits to using commercial debt collection services in Lithuania, including:
- Expertise in local laws and cultural norms: A local debt collection agency will have a thorough understanding of the legal and cultural specifics of Lithuania, which can be crucial for effectively collecting debts in the country.
- Access to local networks and resources: A local debt collection agency will have connections and resources within the local business community, which can be useful for tracking down debtors and collecting debts.
- Ability to negotiate settlements: A local debt collection agency may be able to negotiate settlements or payment plans with debtors in a way that is more effective than if the creditor were to try to collect the debt themselves.
- Improved recovery rates: A professional debt collection agency will have the expertise and resources to recover debts more effectively than an individual creditor might be able to on their own.
- Reduced risk of legal action: A local debt collection agency will be familiar with the legal procedures for collecting debts in Lithuania and can help creditors avoid the risk of legal action.
- Time-saving: Using a debt collection agency can save creditors a significant amount of time and effort, as the agency will handle the process of tracking down debtors and negotiating settlements on behalf of the creditor.
- Cost-effective: In many cases, using a debt collection agency can be more cost-effective than trying to collect debts on one's own, as the agency will handle the entire process and will typically only charge a percentage of the recovered amount.
Our debt recovery agency has a very high success rate in Lithuania thanks to our multi-lingual debt collectors located in the country and our 24/7 online debt recovery report website. We have local debt collection managers in the three main cities of Vilnius, Kaunas, and Klaipėda.