Debt recovery

Debt recovery is for companies and organisations whose counterparties do not pay for delivered goods or completed work, do not return an advance or do not perform the contract. Calls and letters asking for payment usually bring only promises, while the debtor uses your money and you look for financing. We take the recovery on ourselves: from the letter of claim to enforcement proceedings.

The client gets the money or the goods back, or, if recovery is impossible, the documents that allow the bad debt to be lawfully written off in the accounts. The legal department of MK Audit has been recovering debts for more than 20 years, including from state-owned and municipal enterprises, and our auditors help reflect the result correctly in the accounting and tax records.

What is included

• analysis of the contract, primary documents and correspondence, assessment of recovery prospects;
• check of the debtor: registers, court cases, enforcement proceedings, signs of insolvency, assets;
• pre-trial settlement: letter of claim, negotiations, restructuring schedule, settlement agreement;
• preparation of the claim to the commercial court, calculation of the principal, penalties, fines and inflation losses;
• representation in courts of all instances;
• enforcement: obtaining the writ, working with state and private enforcement officers, attachment of funds and assets;
• participation in the debtor’s bankruptcy proceedings, inclusion in the register of creditors;
• advice to the accountant on the doubtful debt provision and the write-off of bad debts.

Who needs it

• LLCs and sole proprietors with overdue receivables from customers or clients;
• suppliers and contractors that are not paid by state-owned and municipal enterprises;
• landlords whose tenants owe rent;
• non-profit organisations and charitable foundations whose contractors or suppliers failed to perform project work and did not return the advance; the donor requires proof that the organisation took steps to recover the funds, and the recovery file becomes part of the report and of the grant audit;
• foreign companies and representative offices whose Ukrainian partners fail to perform.

Recovery stages

Stage	What we do	Result
Letter of claim	Written demand with the debt calculation and a payment deadline	Some debtors pay to avoid court; evidence for the claim
Negotiations	Agree a repayment schedule, restructuring, security	Settlement or restructuring agreement
Court	Claim, evidence, hearings, appeal if needed	Court decision and writ of execution
Enforcement	Opening enforcement proceedings, attachment of accounts and assets	Money on your account or the debtor’s assets sold
Write-off	Preparing the documents if recovery is impossible	Lawful write-off of the bad debt in the accounts

How the work proceeds

1. Request and proposal. You send the contract and the documents on the debt, we assess the prospects and send a proposal within 1 day.
2. Contract and checklist. We sign the contract, agree the strategy and collect the evidence according to the list.
3. Execution. Letter of claim, negotiations, court claim, hearings, enforcement. You receive a report after each stage.
4. Result and support. The money returns to your account, we help reflect the result in the accounts and advise how to prevent new bad debts.

Documents you will need

• the contract with the debtor with all annexes and amendments;
• primary documents: delivery notes, acts of completed work, invoices, payment documents;
• reconciliation statements, if signed;
• correspondence with the debtor, including e-mail;
• a receipt or loan agreement if the debt is owed by an individual;
• details of the debtor: registration code, address, known accounts and assets.

Timing

The claim stage takes two to four weeks. Proceedings in the commercial court of first instance usually take two to four months; enforcement depends on whether the debtor has funds and assets. It is important not to miss the limitation period, so contact us as soon as late payment becomes systematic.

Clients who have handed their bookkeeping to us receive receivables monitoring as part of the service: we see overdue balances in the accounts and flag them before the debt becomes a problem.

Leave a request in the form below: a commercial proposal after we review the task, reply within 1 day.