What are the key features of debt collection in the EAEU?

Country

Basic regulation

Key features of the process

Russia

1. Federal Law No. 229 is the main regulatory framework for debt collection through bailiffs.

2. Federal Law No. 230 focuses on the collection of debts from individuals.

3. Federal Law No. 151 regulates the activities of microfinance organizations, making it important for collecting microloan debts.

4. Federal Law No. 353 governs consumer lending practices.

5. Federal Law No. 102 specifically addresses mortgage regulations.

6. Federal Law No. 127 describes the bankruptcy procedures for individuals, sole proprietors, and organizations.

Additional Regulations include:

1. The Tax Code of the Russian Federation (July 31, 1998), which deals with tax-related debts, including fees and penalties.

2. The Code of Administrative Offenses (December 30, 2001), which pertains to the collection of administrative fines.

3. The Civil Procedure Code (June 11, 1964), outlining rules for court-based collections, including requirements for claims and complaints.

4. Arbitrazh Procedural Code of the Russian Federation No. 95-FZ of July 24, 2002 (as amended up to Federal Law No. 422-FZ of December 8, 2011)

5. The Housing Code (December 29, 2004), relevant to unpaid rent and utility bills and other various regulations that address specific types of obligations and debts.

The Federal Bailiff Service (FSSP) conducts enforcement proceedings. Bailiffs have extensive powers to search for accounts and property and can even impose travel bans on debtors. There is a well-developed auction system for selling seized property, allowing creditors to recover owed amounts more effectively.

Kazakhstan

1. The Law "On Collector Activity" (May 6, 2017, No. 62-VI) regulates the activities of collection agencies, including licensing, registration, and strict rules for interaction with debtors (e.g., prohibition of collecting debts without a contract, limits on calling times).

2. The Law "On Solvency Recovery and Bankruptcy of Citizens of the Republic of Kazakhstan" (March 3, 2023) establishes procedures for citizens to declare bankruptcy or restructure debts.

3. The Law "On Banks and Banking Activity" (August 31, 1995, No. 2444) mandates that banks notify customers of loan delays within 30 days and allow 30 days for restructuring applications.

4. Civil Procedure Code (October 31, 2015, No. 377-V ZRK) regulates judicial debt recovery, including simplified written proceedings and issuance of court orders for debt collection.

In many cases, pre-trial settlements and mediation are actively encouraged. Court decisions are enforced immediately, which means that bailiffs can swiftly take action to seize assets when necessary.

Armenia

1. Civil Code of the Republic of Armenia (May 5, 1998) governs contractual obligations, setting the foundation for repayment terms, interest, and penalties.

2. Law on Bankruptcy (November 6, 2001) outlines procedures for debt restructuring or liquidation, including mandatory court application by creditors if a debtor’s assets are insufficient for repayment.

3. Law on Compulsory Enforcement of Judicial Acts (May 5, 1998) governs the process of seizing property, freezing assets, and enforcing court-ordered payments through the Compulsory Enforcement Service.

4. Civil Procedure Code (February 9, 2018) defines the legal framework for filing claims and obtaining judgments in court.

5. Law on Banking and Credit Organizations (June 22, 2002) governs debt recovery related to financial institutions, including rules on asset-backed securities and loan agreements.

Debt collection methods can be divided into judicial and non-judicial approaches. The initial step typically involves assessing the debtor's financial situation to identify the best course of action. Non-judicial collection usually focuses on negotiations with the debtor to reach a mutually acceptable agreement. If these negotiations fail, judicial procedures may be initiated, with court orders commonly used to enforce debts. It’s also important to remember that there are specific time limits for filing claims during the collection process, which must be strictly followed.

Kyrgyzstan

1. The Law of the Kyrgyz Republic on Bankruptcy (October 15, 1997, No. 74) regulates the overall bankruptcy process for individuals and entities, outlining rights and obligations.

2. The Decree of the Government of the Kyrgyz Republic on the Order of Using Bankruptcy Process Procedures (December 30, 1998, No. 865) specifies the procedures to be followed during the bankruptcy process.

3. The Regulation on the Order of Appointment of Administrators by the Bankruptcy Authority (August 22, 2002, No. 584) defines the criteria and process for appointing bankruptcy administrators.

4. The Instruction on Reporting by Administrators (April 7, 2011, No. 143) outlines reporting requirements for administrators conducting bankruptcy procedures.

5. The Rules of Conducting Bankruptcy Proceedings (December 30, 1998, No. 865) details the conduct and operational protocols for managing bankruptcy cases.

Debt collection proceedings can be started with a notary's writ of execution. Like in other countries, bailiffs conduct searches and seizures of property and may also initiate bankruptcy proceedings against the debtor if needed.