Debt collection in Uzbekistan

The debt collection procedure in Uzbekistan 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 Uzbekistan 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 lawsuit will be left without consideration.

The legislation of Uzbekistan provides for three types of debt collection through the court, by issuing a court order, in the order of general consideration and simplified proceedings.

The procedure for issuing a court order is applicable to claims for the collection of receivables based on their documentary recognition. To carry out this procedure, you must submit a corresponding application to the court with proof of sending the same application to the debtor. If within 10 days from the receipt of the application the debtor admits the debt or does not file an objection, the court issues a court order to collect the debt, which can be presented to force the collection of the debt. If the debtor files an objection and the court finds that there is a dispute in this debt, then the court will refuse to issue a court order and then the case should be considered in the general manner. The court order can be appealed by the debtor within 10 days from the date of its issue.

The general procedure for litigation is carried out by filing a statement of lawsuit in court. In this case, the plaintiff is obliged, before filing a lawsuit 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 one month from the date of commencement of proceedings. In exceptional cases, the court may extend this period by another month. In practice, the specified review period is much longer. The decision of the court of first instance comes into force within one month from the date of its adoption, unless it is appealed.

Summary proceedings are applicable to cases with a claim value of no more than 510 euros. The case is considered without a trial, without summoning the parties and hearing their explanations within 20 days from the date of commencement of proceedings. Extension of this period is not permitted. The court decision comes into force within ten days from the date of its adoption, unless it is appealed.

An appeal against a court decision in a general manner is considered within one month from the opening of the appeal proceedings, and a court decision in a simplified manner within fifteen days. In exceptional cases, the court may extend the consideration period by no more than a month. As a result of consideration of the appeal, the appellate court adopts 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 Republic of Uzbekistan within a year after the entry into force of the appealed court decision. 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. A cassation appeal is considered within a month from the date of appointment for consideration of the complaint in court proceedings. It is also possible to extend this period for another month.

After the court decision enters into legal force, provided that the debtor refuses to comply with it voluntarily, you should obtain a writ of execution from the court and initiate enforcement of the court decision at the Bureau of Compulsory Enforcement under the General Prosecutor’s Office of the Republic of Uzbekistan. The creditor has the right to present a writ of execution to the executive body within three years from the date of its issue.

The Law on the Execution of Judicial Acts and Acts of Other Bodies provides for the possibility of presenting enforcement documents for the collection of funds directly to a bank or credit organizations if the creditor has information about open accounts of the debtor in such financial structures. In turn, the bank or credit organization must fulfill the requirements of the writ of execution within a working day, and if there are no funds in the debtor’s accounts, make an appropriate note about this in the writ of execution. Failure to comply with these requirements entails the imposition of penalties on such financial organizations.

According to the law, the period for compulsory execution is two months from the date of commencement of proceedings, but in reality it is much longer.

If within three months the debtor is unable to ensure the fulfillment of the creditor’s demands from the moment they arise, then it becomes possible to initiate bankruptcy proceedings for the debtor. This procedure is interesting if the debtor does not have assets to repay the debt and, at the same time, the debtor found itself in this state due to unlawful actions of officials and/or owners of the debtor. Such circumstances make it possible to bring the debtor’s controlling persons to additional liability.

An alternative way to collect debt is to bring the debtor’s officials to criminal liability in accordance with Art. 232 of the Criminal Code of the Republic of Uzbekistan for evading the execution of a court decision on the collection of funds.

If you have any questions or need support regarding international debt collection issues in the Republic of Uzbekistan, 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 UZBEKISTAN

06.02.2022

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