Debt collection in Kyrgyzstan

The debt collection procedure in Kyrgyzstan begins with an analysis of the financial capacity of the debtor, his field of activity, the history of the enterprise, the availability of documentary evidence of the debt, current court cases and initiated enforcement procedures, as well as the possibility of contesting the debt. This analysis forms the strategy that will be used on behalf of the client to recover the debt.

If there are no open lawsuits against the debtor or unexecuted court decisions on debt collection, and if he is actively engaged in his business, then it is advisable to use amicable debt collection.

This stage is based on active negotiations with the debtor to reach an agreement regarding payment of the creditor’s claims or other settlement options (for example, return of goods, transfer of debt to a third party, exchange of services or goods).

Interaction with the debtor begins with sending a notification via mail, email, telephone or instant messengers. This process involves intensive communication with the debtor to put pressure on him. The main goal is dialogue with key decision makers in order to speed up debt repayment.

The average term for out-of-court collection is up to 60 days. If this stage does not bring the expected results or if after an initial analysis it becomes clear that it is not applicable, then you should proceed to recovery through the court.

The statute of limitations in Kyrgyzstan is 3 years. The law prohibits changing the specified period by agreement of the parties. If the statute of limitations has been missed, the creditor has the right to file a lawsuit to collect the debt, but if the debtor files an application with the court to apply the consequences of missing the statute of limitations, then the claim will be denied. The statute of limitations is interrupted due to the debtor committing actions that indicate recognition of the debt. After the interruption of the term, the three-year period begins to be calculated anew.

Before going to court, you should pay attention to the procedure for resolving the dispute, which the parties provided for in the contract. Therefore, if the parties have established that the disputes that have arisen will be resolved through a claim settlement procedure, then before filing a claim in court, it is necessary to fulfill the stipulated condition. Otherwise, the court will return the statement of claim.

The legislation of Kyrgyzstan provides for two types of debt collection through the court by issuing a court order and in the order of general judicial consideration.

The procedure for issuing a court order is applicable to claims for the collection of receivables based on transactions concluded in simple written form and provided that there is no dispute about the right. To carry out this procedure, an appropriate application must be submitted to the court, after which the court will issue a court order within three days without trial or summoning the parties. If the debtor does not file an objection within 10 days from the receipt of the court order, the court issues to the creditor a copy of the court order to collect the debt, which can be presented for forced execution. If the debtor files an objection, the court issues a ruling to cancel the court order, and in this case the case should be considered in the general manner.

The general procedure for litigation is carried out by filing a statement of claim in court. In this case, the plaintiff is obliged, before filing a claim in court, to hand over a copy of it with all attachments to it to the defendant. The period for consideration of the case in the court of first instance is three months from the date of receipt of the claim in court. The decision of the court of first instance comes into force within thirty days from the date of its adoption, unless it is appealed.

An appeal against a court decision in the general manner is considered within two months from the date the case is received by the appeal court. As a result of consideration of the complaint, the appellate court makes a decision, which comes into force from the moment of its adoption.

Each of the parties to the case has the right to file a cassation appeal with the Supreme Court of the Kyrgyz Republic within three months after the appealed decision of the appellate court comes into force. In this case, the interested party may file a petition to suspend the effect of the decision of the court of first instance and/or the decision of the court of appeal that has entered into legal force. The cassation appeal is considered within two months from the date of receipt of the case by the Supreme Court.

After the court decision enters into legal force, provided that the debtor refuses to comply with it voluntarily, you should obtain a document of execution from the court and present it to the bailiff. The creditor has the right to present a document of execution within three years from the date the court decision enters into legal force.

According to the Law “On the Status of Bailiffs and Enforcement Proceedings,” the period for compulsory execution is four months from the date the bailiff receives the enforcement document, but in reality it is much longer. Satisfaction of the creditor’s demands in the process of forced execution is carried out through the seizure of funds and their write-off, seizure of property with subsequent sale, seizure of securities and receivables.

If the debtor is unable to ensure the fulfillment of the creditor’s demands for an amount of at least a thousand calculated indicators, then it becomes possible to initiate bankruptcy proceedings for the debtor. This procedure is interesting because it involves bringing the controlling persons of the debtor to subsidiary liability for the company’s debts in the event that the debtor does not have assets to repay the debt and, at the same time, he himself did not initiate the bankruptcy procedure, or the insufficiency of assets to repay the debt is caused by the actions of the debtor’s management.

An alternative way to collect debt is to bring the debtor’s officials to criminal liability in accordance with Art. 370 of the Criminal Code of the Kyrgyz Republic for failure to comply with a court decision that has entered into legal force.

If you have any questions or need support regarding international debt collection in Kyrgyzstan, our company is ready to provide our expert assistance to effectively resolve your debt issue. Please contact us to receive additional information and professional support from specialists of the leading debt collection agency.

# DEBT COLLECTION AGENCY KYRGYZSTAN

06.02.2022

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