Contract Law Enforcement (CLE) Program

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How You Can Collect Debts?

How You Can Collect Debts?Photo by: The USAID Contract Law Enforcement (CLE) Program

Since debts and debtors are present everywhere and always, this article may help you as creditor to recover what belongs to you, either through a competent court or through a newly established institution in Kosovo – private enforcement agents.Disagreements and civil disputes, whether they for non-payment of invoices, violation of purchase contract terms, employee reinstatement or other, often make us address the court for resolution. Regardless of what problem we want to resolve by initiating the court procedures, the decision taken by the court at the end of that process, however, is not the end of it.If you are a lender who wants his debt to be recovered, such a decision would be just a piece of paper which, if not executed effectively, will not provide you the rights you are entitled to. Therefore, the next final step of the process is to submit the request for implementation of such decision, which in legal terminology is known as ‘enforcement’.

Submitting the proposal for enforcement is the last possibility given to you to realize your existing right, as the decision is final and there are no more possibilities for retrial. This means that in order for you to begin the process of recovering the debt, the first step that you should take is to submit the request for enforcement. Until now, according to the rules such a request was submitted only to the basic court, but as of January 2014 requests may be submitted to private enforcement agents or to a basic court. While from July 2014 all requests should be submitted to private enforcement agents only, with the exception of family related issues and cases of reinstatement of employees. In addition to submitting the request, as a requester you should cover the necessary costs of enforcement, costs which later will be compensated by the debtor. Whereas regarding the format of such request, the law does not provide for any particular form to be followed. However, the law provides that information like your first and last name, debtor’s name, addresses of both parties, personal numbers, debt that is claimed and the way in which the enforcement is sought to be conducted, should be clearly stated in the request. Furthermore, since there are different ways of enforcing a decision, you are given the possibility to select them. Although on case by case basis, request may be different, most frequent of which are by taking debtors money from their bank account or attachment of movable and immovable assets which are then sold and debt is recovered from the proceeds of such sale.

Another element that you as a lender should take into consideration is deadlines for submitting the request before it is prescribed and before you lose the right to submit it. The general rule states that requests may be submitted within a period of 5 (five) years. However, depending on the concrete case, such a deadline can change and this is defined in details in the Law on Contractual Obligations.

During the entire this procedure, in case you change your mind or if debtor pays off his debt, you have the possibility to withdraw your request. In case of withdrawal, you still have the possibility to resubmit your request, for as long as the above stated deadline has not expired. Finally, in case your request is rejected, you have the right to file an appeal to the court.

This article was prepared by the USAID Contract Law Enforcement (CLE) Program thanks to the American people. The content of this article is responsibility of USAID Contract Law Enforcement (CLE) Program and author’s views do not necessarily reflect the views of United States Agency for International Development (USAID) or the United States Government. Contract Law Enforcement (CLE) Program, launched in May 2013, is a three year program with the aim to strengthen the judicial system in Kosovo in the field of contract law, judgment enforcement and mediation as alternative dispute resolution.

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