Debt collection with individual entrepreneurs is an individual’s responsibility that occurs at the time of termination of payments on the loan, other debts. We are talking about methods and ways of influencing a person who must repay a loan to a lender. These can be bank loans, tripartite agreements with contractors and customers of specific services. We will tell you what happens after the formation of debt; how collectors work and what awaits the debtor.
How does the debt appear?
Telephone calls, threats - the most common method of exerting pressure on the debtor by collectors. Concluding an agreement with a bank, a store, buying goods by installments or a loan, you should carefully read the paragraphs that contain information on authorizing insolvent citizens.
Cases are transferred to collectors who deal with refunds. If the debtor does not make contact, the case is referred to court.
The right of collectors to appeal to court
Collectors are employees of private institutions that do one thing: repay debts. They have the right to demand to pay off the amount of debt, to remind about the size of the penalty. Legally, they are endowed with duties and the right to appeal to the court. However, they can not always bring a case to court. Debt collection from individuals often occurs according to the established principle of repayment of debts from an individual.
Legislative regulation
The appeal of collectors to the court is an isolated case. More often they prefer to conduct conversations with debtors, call them, turn to social networks if the searches did not bring a satisfactory result. Loan agreements are concluded between two parties - the borrower and the lender. The latter has the right to apply to the collection company before the court.
If the money cannot be returned, the papers are transferred to the court. Collectors are vested with this right when there is an order from the creditor. That is, a collector is a person who represents the interests of a creditor in court on legislative rights.
Also, the borrower can not apply measures in the process of repayment of debt:
- threats of a different nature;
- misinformation in order to receive funds soon;
- pressure or misrepresentation;
- the number of calls and visits to the debtor at the place of residence or residence is limited.
Collectors can collect debt from private individuals by court order. Without it, it is impossible to seize property, seize property, and pick up personal items for debt. Bailiffs are subsequently involved in this process.
Are court proceedings profitable for them?
Collection companies deal with debt history when they can profit from it. Any appeal implies a% payment for the services of the company. If the amount is less than a thousand dollars, going to court is not profitable. The price of the claim may increase. It is especially important to consider this when there is no way to find the debtor.
In such cases, they are limited to calls to relatives, former spouses, friends. Debt collection from a former individual entrepreneur can only be undertaken by financial organizations until a court decision is received. That is, to come into the house and pick up property, to express threats is strictly prohibited.
- If the amount of debt is large, then we are talking about high interest for their work.
- Each collector earns up to 25% of the price of the claim in a successful situation.
- When initially contacting the company, collectors need to pay 10-20% of the amount of debt that the client wants to return.
In practice, law firms operating through collectors independently pay legal fees, transferring the rights and authority to conduct business in the highest instance. Therefore, debt collection with private individuals takes a long time. Often a case is brought to court when the firm ceased operations.
Do they often sue?
In judicial practice, it is rarely possible to see a case that is started by a collector. If the loan was secured, the company is interested in returning the compensated part of the property. And debt collection from a former individual entrepreneur or an existing one is the work of the relevant authorities and private receivables.
The same thing happens with the real estate market:
- banks transfer business to collectors;
- the latter are developing a debt payment schedule;
- in case of unsuccessful conduct of business, the deposit is withdrawn;
- the property is transferred to the bank (if a mortgage loan is issued);
- The lot is put up for auction.
If it is not possible to cover the damage with the value of the collateral, it will be difficult in court to “knock out” the balance of the loan. Otherwise, the debt is written off by the company that issued the loan.
Collection methods
Until the collectors filed a case with the court and received a decision on it to recover a debt from an individual entrepreneur, they can influence the debtor in two ways:
- Send an official letter at the place of registration or residence with a request to pay the debt. Distribution to relatives is allowed.
- Submit a case to a court with a requirement of a forced drive to the courtroom with the aim of imposing a ban on leaving the country.
If the court decides to refund the money, the bailiffs will do it. Debt collection with individual entrepreneurs on the writ of execution occurs until the company is declared bankrupt. Bailiffs have the right to seize accounts, impose a ban on leaving the country, put on the wanted list of the owner of the IP and seal the property (housing).
IP - an individual who is responsible not only with the assets of the company, but also with personal property. Therefore, the recovery of debt from an individual who has ceased operations continues until the debt is repaid.
As soon as the deadline for the execution of the court decision comes to an end, valuable things may be taken from the apartment to cover the debt.
Is it possible to prosecute a defaulter
It has already been said that debt collection from individuals who have ceased operations is not suspended. Collectors can sue a debtor for a loan.
What is the situation with criminal punishment?
- It is impossible to get a criminal record for lack of money. There is no legal norm of law.
- Criminal prosecution is possible when proving that the money was taken in order not to return it.
The second implies fraud unless proven otherwise. There are situations when the minimum payments were paid during the term of the contract. However, the recovery of debt from individual entrepreneurs by court decision is possible if there is any property in the possession of an individual.
Actions of the non-payer if the collectors go to court
Collectors, going to court, suspend the calculation of interest for non-payment of funds. The debtor should not worry. If he believes that the punishment measure is unlawful, he has difficult life circumstances, he has the right to sue the bank on credit on his own and draw up an installment plan for payments. Debt collection from a liquidated IP can be suspended for a while. Debt cancellation is acceptable if it amounts to a small amount for investors or persons who issued a loan.
But this is decided in court.
If a lawsuit is filed, the debtor is advised:
- collect all receipts for the payment of debt by month or other established schedule;
- provide evidence of solvency or inability to pay the loan;
- study the transaction agreement and consult with a lawyer.
It will be useful to study the case materials - they are received in the court registry, where the borrower’s side applied. The amount to be returned is less than 50,000 rubles - the case will be referred to the justice of the peace. It is allowed to take copies and transfer them to a lawyer.
A collection agency is prohibited from obstructing such actions. If the case is pending, a counterclaim is allowed. If there is a decision, file an appeal to annul the judgment.
Protective measures and outcomes
In practice, there are only two possible outcomes for a borrower when debt collection from a closed private equity fund takes place. It doesn’t matter, he issued a microloan, which grew to several tens of thousands of rubles, or a large amount secured by property:
- The decision is made in favor of the collectors.
- Compulsory collection is imposed, fines are charged.
- The forfeit can still be challenged if the collection of debt from the liquidated individual entrepreneur exceeds the initial amount of the debt, but the interest for the work of a lawyer and collectors is not.
When a lawsuit is lost in court, the FSSP service is responsible for the recovery of debts. They have the right to seize property, block 50% of income.
The amount is more than half a million rubles - the person is declared bankrupt, the collection of debt from a closed IP is stopped. Often the decision is made in favor of those persons when the liquidation of the enterprise occurs. In rare cases, it happens that the debt is completely written off. Fines for non-payment are canceled, interest is canceled.
Remember that penalties from collectors are not a premium for their work. All debts on loans are specified in the contracts. There are also applications with points of force majeure: debt collection from individual entrepreneurs according to the writ of execution, through collectors, court. The loan contract also has a fixed rate.
If% for penalty is indicated, they are executed in a separate application with a clear payment schedule, provided that these cases occur. Large debts and a low probability of outcome are a direct way to a lawyer. Do not believe letters with words about the speedy transfer of the case to court. When initiating an administrative case, you need to quickly complete all the documentation and contact an experienced lawyer.