Debt collection in Belarus

The debt collection procedure in Belarus usually begins with an analysis of the debtor’s financial position, business activity, history of performance, documentary evidence of the debt, pending court cases, enforcement procedures and the likelihood that the debt will be disputed. The Civil Procedure Code of the Republic of Belarus, applicable from January 1, 2026, is also important for choosing the appropriate legal route: negotiations, a demand letter, mediation, a notarial enforcement endorsement, court order proceedings, ordinary litigation or subsequent enforcement.

If the debtor does not have pending debt litigation or outstanding court decisions and continues to conduct business, it may be reasonable to start with the amicable debt collection stage. This stage may include negotiations, a written demand, agreement on a payment schedule, installment payments, return of goods, debt transfer, exchange of services or goods, and other settlement options that do not contradict the law or the contract.

Communication with the debtor should begin after sending a notice or demand letter through the communication channels used by the parties, including post, email, telephone or messengers, if such methods were used in the business relationship. At this stage, it is important not only to negotiate, but also to document the debtor’s position: acknowledgment of the debt, request for deferment or installment payment, partial payment, objections to the amount or refusal to perform. The main purpose of the amicable stage is to contact the decision makers, assess the debtor’s real ability to pay and prepare the legal basis for further recovery.

At this stage, the parties may conduct mediation and conclude a mediation agreement. If the debtor later fails to comply with the mediation agreement, the creditor may apply to the court for an enforcement document and proceed to enforcement. The parties may also sign an act of reconciliation or another document confirming the debt, which may help demonstrate that the debt is undisputed and, where the legal conditions are met, allow the creditor to use a faster enforcement route.

The actual duration of amicable collection depends on the debtor’s response, the quality of the documents, whether the debt is acknowledged, whether mediation is required and whether the parties negotiate deferment or installment payment. If this stage does not bring the expected result, or if the initial analysis shows that it is not suitable, the creditor should consider court proceedings, a notarial enforcement endorsement or another lawful method of obtaining an enforcement document for subsequent compulsory recovery.

Before initiating judicial recovery, it is necessary to assess the limitation period. The general limitation period for civil claims in Belarus is three years, unless a special period is provided by law or an applicable international treaty for a specific type of claim. The parties cannot change the limitation period by agreement. The expiry of the limitation period does not in itself prevent the creditor from filing a claim with the court, but if the debtor requests the application of limitation before the judgment is issued, this may result in the dismissal of the claim.

The limitation period may be interrupted by actions of the debtor indicating acknowledgment of the debt. Such actions may include partial payment of the principal debt, payment of interest, full or partial acknowledgment of a demand letter, signing an additional agreement, requesting deferment or installment payment, and other conduct showing acknowledgment of a specific obligation.

For international debt collection, it is also necessary to consider applicable international treaties. Belarus is a party to the 1974 Convention on the Limitation Period in the International Sale of Goods. The four-year limitation period under this Convention does not apply to all international debts, but to claims of buyers and sellers arising from a contract for the international sale of goods or related to its breach, termination or invalidity.

If, during the amicable stage, the parties sign a mediation agreement or a reconciliation document, the creditor may use the lawful mechanisms for obtaining an enforcement document for subsequent compulsory recovery.

1. Debt collection through a mediation agreement.

At the negotiation stage, the parties may enter into a mediation agreement that records the terms of settlement, the amount of the debt, the payment procedure and deadlines, possible installment payment, consequences of non-performance and other obligations of the parties. A mediation agreement is concluded with the participation of a mediator and may be useful when the debtor acknowledges the debt but asks to change the payment schedule or settle the dispute without full court proceedings.

If the debtor does not voluntarily perform the mediation agreement, the creditor may apply to the court for the issuance of an enforcement document for its compulsory enforcement. Such an application is filed at the place of residence, stay or location of the party that failed to perform the agreement; if this information is unknown, it may be filed at the place where that party’s property is located. The application may be filed within six months after the expiry of the voluntary performance period under the mediation agreement.

The application is accompanied by the original mediation agreement, evidence of non-performance, a document confirming the representative’s authority and a document confirming payment of the state fee, if payable. The application is considered by the court in a court hearing within one month after it is received by the court.

If the parties are located in different states, they may conclude an international mediation agreement. In Belarus, recognition and enforcement of such an agreement is considered by the economic court of a region or the city of Minsk upon application of the interested party. The application is filed within six months after the expiry of the voluntary performance period, and documents prepared in a foreign language must be accompanied by a duly certified translation into one of the official languages of the Republic of Belarus.

2. Debt collection through a notary.

Debt collection through a notary is carried out by obtaining a notarial enforcement endorsement, which has the force of an enforcement document. This method does not apply to every debt, but only to undisputed claims for which the law allows a notarial enforcement endorsement. Therefore, the key factors are not only the amount of the debt, but also the nature of the obligation, the availability of documents confirming the claim and the absence of signs of a dispute over the right.

To apply to a notary, the creditor submits documents confirming the undisputed nature of the claim, the calculation of the amount due and other documents required for the specific type of claim. An act of reconciliation or written acknowledgment of the debt by the debtor may be important, but it does not replace the legal assessment of whether the specific claim falls within the scope of claims for which a notarial enforcement endorsement may be issued.

If the creditor has a complete set of undisputed documents, a notarial enforcement endorsement usually makes it possible to obtain an enforcement document faster than through ordinary litigation. Belarus also allows a notarial enforcement endorsement to be issued in electronic form through a personal account, provided that the documents are submitted in the prescribed manner and signed with an electronic digital signature.

In Belarus, judicial debt collection may be carried out through court order proceedings or ordinary litigation. The choice of procedure depends on the nature of the claim, the creditor’s documents, the result of pre-trial settlement, the debtor’s objections and the ability to prove that the debt is undisputed.

1. Debt collection through court order proceedings.

Court order proceedings apply to claims for the recovery of money, recovery of property or enforcement against the debtor’s property where the claims are based on documents confirming the debt or are acknowledged or not disputed by the debtor but remain unpaid. This procedure takes place without full court proceedings with the parties being summoned and ends with the issuance of a court order ruling.

To apply the described method, you must first send a letter of claim to the debtor. If he does not respond to such a letter (silence is a sign of consent from established judicial practice), or answers that he agrees with the debt, but he does not have the opportunity to repay it, then the creditor has the right to use the specified method.

An application for a court order ruling must contain information about the creditor and the debtor, the creditor’s claims, the legal basis, the circumstances giving rise to the debt, evidence, calculation of the amount claimed and information confirming compliance with the mandatory pre-trial procedure, if it is required by law or contract. The application must be accompanied by documents confirming the claims, payment of the state fee, compliance with the pre-trial procedure and the representative’s authority.

A court order ruling is issued within five days after the application is received by the court, unless another period is established by law. Within three days after the ruling is issued, a copy is sent to the debtor by means that allow confirmation of receipt. The debtor may file an application for cancellation with the same court within ten days after receiving the copy. If an application for cancellation is filed, the creditor may bring the claims in ordinary litigation.

2. Debt collection through ordinary litigation.

Ordinary litigation applies when the debtor disputes the debt, disagrees with its amount, brings counterclaims, refers to improper performance of the contract by the creditor, or when court order proceedings cannot be used. In this procedure, the dispute is considered by the court with the participation of the parties or their representatives, with examination of evidence, calculations, contracts, correspondence and other case materials.

To apply the described method, it is also necessary to send a demand letter to the debtor first, if such a procedure is required by law or contract. If the debtor disputes the debt, the amount claimed or the basis of the obligation in response to the demand, the creditor may use ordinary litigation. Claims that were not resolved in court order proceedings, or claims where the court order ruling was cancelled, may also be considered in this procedure.

A judgment of the court of first instance enters into legal force after the expiry of the appeal period, unless it is appealed. An appeal against a judgment of the court of first instance is filed within fifteen days after the judgment is issued or after the motivated part of the judgment is served on the person entitled to appeal. An appellate ruling enters into legal force from the moment it is issued.

Judicial decisions in economic disputes may be challenged in cassation. Cassation appeals against judgments and rulings of regional economic courts and the economic court of the city of Minsk, as well as rulings of the Appellate Economic Court issued on appeal, are considered by the Presidium of the Appellate Economic Court. The period for filing a cassation appeal is six months from the date when the judicial decision enters into legal force.

After the court decision enters into legal force, it is necessary to obtain an enforcement document in order to start compulsory enforcement. At this stage, recovery is carried out through the enforcement authorities with the participation of an enforcement officer, who applies the measures provided by enforcement legislation. If a simplified enforcement procedure applies, the enforcement officer may debit funds from the debtor’s bank accounts on the basis of the enforcement document.

A separate scenario arises when the creditor already has a foreign court judgment or a foreign arbitral award and intends to enforce it against a debtor or assets located in Belarus. In this case, the procedure for recognition and enforcement of a foreign court judgment or foreign arbitral award applies. The matter is considered by a court of the Republic of Belarus upon the creditor’s application at the place of residence, stay or location of the debtor; if such information is unavailable, the application may be filed at the place where the debtor’s property is located in Belarus.

Unless otherwise provided by law or an international treaty, a foreign court judgment may be presented for compulsory enforcement in Belarus within three years from the date when it entered into legal force. The application is usually accompanied by a certified copy of the foreign judgment, a document confirming that it entered into legal force or is enforceable, evidence that the party that did not participate in the proceedings was properly notified, documents confirming the representative’s authority, information on partial enforcement if the judgment has already been enforced, and a certified translation of the documents into one of the official languages of the Republic of Belarus.

Following the consideration of the application, the court issues a ruling on recognition and enforcement of the foreign court judgment or foreign arbitral award, or a ruling refusing recognition and enforcement. The Belarusian court does not change the content of the foreign judgment or award. After recognition, compulsory enforcement is carried out on the basis of an enforcement writ in accordance with enforcement legislation.

As part of enforcement proceedings, the creditor’s claims may be satisfied from the debtor’s money, funds in bank accounts, property, property rights, and money or property due to the debtor from third parties. The enforcement officer may take measures to identify the debtor’s assets, enforce against those assets, seize property and arrange its sale in the prescribed manner. The actual duration of enforcement proceedings depends on whether the debtor has assets, bank accounts, other creditors, the debtor’s conduct and the scope of enforcement actions required.

If enforcement proceedings do not result in actual repayment of the debt and the debtor’s financial position indicates an inability to perform monetary obligations, the creditor may consider bankruptcy or insolvency regulation proceedings as a separate legal scenario. This option does not apply automatically and requires the statutory grounds, a confirmed claim and compliance with the requirements for the application. Within such proceedings, the issue of subsidiary liability of the debtor’s owners or management may also be considered if the insolvency or bankruptcy was caused by their actions.

An alternative option for influencing the debtor is to bring the controlling persons to criminal liability for failure to comply with a court decision in accordance with Art. 423 of the Criminal Code. This article provides for punishment in the form of a fine and deprivation of the right to engage in certain activities or hold certain positions.

If you need support with debt collection in Belarus, including amicable settlement, obtaining an enforcement document, court proceedings, enforcement of a judgment or international debt collection, our team can analyze the documents, determine the applicable procedure and propose a practical action plan for debt recovery.

# DEBT COLLECTION AGENCY BELARUS

12.04.2024

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