Debt Collection in Estonia

Our Debt Collection Agency in Estonia.

Are you not getting paid and is the non-paying company located in Estonia?

Then you are facing all the legislation and laws applied in Estonia when you are recovering the invoice. The reason is that national procedural laws are applied. But do not worry, by using our service, an Estonian Debt Collection Agency will recover your claim – An expert of the national Estonian legislation governing debt recovery activities.

Through Oddcoll, the Estonian debt collector can to start collect your invoice within minutes.

In Estona, we work together with Aurelius Inkasso OÜ, located in Tallinn. Estonia.

With a high recovery rate, fast and professional action towards the debtor, and superb customer satisfaction, we see them as the best debt collection alternative to use for debt collection in Estonia.

Introduce your company in a few sentences?

Aurelius Inkasso is a goal-oriented law firm, which has the best know-how of how to deal with the business questions you might get into in dealing with partners from all around the world; Europe, the United States of America, Asia. Our team has specialized in individual approach to find the best solution for your needs.

How often do you get paid?

Aurelius Inkasso’s success rate is 80%.

Describe the debt collection process (out of court). What do you do in order to get a debtor to pay, step by step?

Once we get a claim from the client (given that the documentation is sufficient), we will start with the proceedings. (This cannot be revealed here no more, since we treat every clients’ and partners’ information confidentially).

If you take legal actions in a case and win in court, are you able to always add the legal costs that the client has paid to the debt and it will be paid by the debtor?

Once we take the case to court and win, the legal costs have to be paid by the losing party.

Legal debt collection in Estonia.

Unfortunately, sometimes it may be necessary to take legal action against an Estonian debtor as they do not pay despite pressure in the amicable stage of debt recovery in Estonia. Our Estonian representative can easily help you with this.

To sue somebody in court.

One option is to use the usual court proceedings in judicial collection in Estonia.

When two companies have a “conflict” such as when a company does not pay for a product or service, this is categorized as a civil dispute between the parties.

Civil cases fall inside the jurisdiction of county courts (maakohus).

Civil issues cover a wide scope of areas and include conflicts emerging from various agreements and commitments.

To start a civil matter, a lawsuit should be submitted to a county court. The lawsuit must show the party against whom the case is being made, why it is being asserted (for example on what legal premise) and the proof in support of the claim.

Lower instance courts and higher instance courts usually differ, as the Estonian court framework has three instances.

County courts (maakohus) act as courts of first instance to hear every civil matter.

District court (ringkonnakohus): If judgments in the (maakohus) in civil cases, are appealed, then it is the district court that handles the cases.

The Supreme Court (Riigikohus): This is the last instance to which there is a chance to appeal in civil cases. The court thus handles appeals from the district courts. The purpose of the Supreme Court is to set a precedent for the interpretation of legal rules in Estonia.

Procedures under the watchful eye of the courts are led in the Estonian language. An application should be submitted in the Estonian language and be filed with a court in a duly signed format and in writing.

“Order for payment” in Estonia.

For payment claims, there is an extraordinary judicial method in Estonia that makes it simpler, less expensive, and quicker to get a judgment, than in a typical civil proceedings in Country courts. It is known as a “payment order”. It is canvassed in the Chapter 49 of the Code of Civil Procedure (tsiviilkohtumenetluse seadustik).

This methodology applies to claims emerging from private law connections and is intended to cover the payment of specific amounts of money.

In other words. The conflict must concern two private subjects and be about a certain amount of money. It is therefore perfectly suited for legal debt collection in Estonia.

Is there a maximum limit with respect to the total value of the claim?

Yes there is an upper limit. The payment order can only be used for receivables totaling EUR 6,400.

The use of the order for payment in Estonia is entirely voluntary and a creditor can still use the usual legal procedure.

Petitions for assisted method on account of payment orders are directed by Pärnu County Court Haapsalu town hall (Pärnu Maakohtu Haapsalu kohtumaja) payment order office.

Is is required to be represented by a legal attorney? No, it isn’t required to use a lawyer or legal attorney.

In what amount of detail do I need to portray the purpose behind the claim ?

A petition ought to contain:

● a short depiction of the conditions comprising the reason for the claim
● what’s more, a short description of the proof the petitioner will provide in favour of the claim.

What happens if a debtor opposes the claim in a Payment order?

A debtor has the opportunity to dispute the payment claim within 15 days.

There are no formal requirements for how a dispute needs to be made. Nor do any further reasons behind the opposition need to be clarified.

If a dispute is made before the deadline has expired, the court will continue with ordinary court proceedings between the parties.

But on the off chance that the petitioner has unequivocally requested the end of procedures for the situation where an objection has been documented, the procedures are ended.

Impact of absence of objection statement:

In the event that the indebted part neglects to pay the sum shown in the payment order and doesn’t make an objection before the deadline – then the court issues a judgment specifying the debtor’s obligation to pay.

The judgment can be used by the creditor in an enforcement proceeding.

Enforcement procedures in Estonia.

Enforcement in Estonia in commercial contexts means that the Estonian authorities help the creditor to recover the money to which they are entitled. The precondition for this is that the courts in Estonia have issued a judgment proving the claim. 

In addition, a creditor must also actively apply for enforcement. The authorities do not start this automatically after a judgment has been issued. 

Bailiffs (kohtutäiturid) are the ones answerable for Enforcement in Estonia.

Insolvency Proceedings in Estonia :

Once in a while it happens that companies or individuals end up into money related torment, or can’t pay its solicitations and debts, and insolvency procedures become appropriate. So does it occur in Estonia as well.

There are three different statutes on insolvency proceedings in Estonia.

● Procedures for Bankruptcy
● Procedures for Reorganisation and
● Procedures for Debt Restructuring

Rules on bankruptcy proceedings can be found in the Bankruptcy Act, the rules covering rearrangement are set out in the Reorganization Act and the rules for debt restructuring are set out in the Debt Restructuring and Debt Protection Act.

The purpose of insolvency proceedings is to try to satisfy the creditors’ right to payment by taking over control of the debtor’s assets.

Bankruptcy refers to the insolvency of a debtor which has been declared by a court decision. The most important condition for initiating bankruptcy proceedings is thus that the debtor is insolvent. A debtor is insolvent if he is unable to pay his creditors and if this lack of solvency is not only temporary.

The subsequent fundamental precondition for the launch of bankruptcy procedures is the documentation of a Petition for Bankruptcy, and it very well might be filed by the creditor or the person/business in debt.

At the point when Bankruptcy is proclaimed, the debt holder’s assets and resources become the insolvency estate and the debt holder’s entitlement to oversee and discard the insolvency estate is moved to the trustee in insolvency.