How to Effectively Recover Debt: Legal Strategies for Individuals and Businesses

The debt recovery process is one of the key areas of civil and commercial law practice and is in high demand among both private individuals and businesses. Regardless of the nature of the obligation—loan agreement, promissory note, unfulfilled supply contract, or unpaid invoices—the legal foundation for debt collection remains unchanged: the obligation must be properly fulfilled within the established timeframe. This article offers a comprehensive overview of legal debt recovery mechanisms in 2025, aimed at protecting creditors’ interests.

1. Legal Qualification of the Obligation and Grounds for Filing a Claim

According to Article 309 of the Civil Code of the Russian Federation, obligations must be fulfilled in accordance with the terms established by agreement and the law. In case of breach, the creditor has the right to initiate legal proceedings to protect their rights. The basis for debt collection is the existence of an outstanding obligation confirmed by appropriate evidence: contracts, promissory notes, work completion certificates, correspondence, bank documents, and other supporting materials.

In private legal relationships, a promissory note is a key piece of written evidence confirming the transfer of funds. In business relations, the most critical elements are contractual documents and accounting records, which demonstrate that one party fulfilled its obligations while the other failed to reciprocate.

2. Pre-Trial Settlement: The Importance of Sending a Claim Letter

Although pre-trial settlement is not mandatory in all cases, it often helps achieve a positive result without going to court. A properly drafted claim letter not only confirms the existence of the debt but also serves as proof of the creditor’s good faith. In commercial disputes, the pre-trial procedure is mandatory (Article 4 of the Commercial Procedure Code of the Russian Federation), whereas in civil proceedings, it is optional.

A claim letter should include:

• Legal grounds for the debt;

• A calculation of the outstanding amount;

• A set deadline for voluntary payment;

• A warning about possible legal consequences in the event of non-payment (such as court proceedings, interest charges, penalties, etc.).

3. Court Proceedings: Choosing the Right Jurisdiction and Legal Position

Jurisdiction depends on the status of the parties and the nature of the legal relationship. Disputes between legal entities or individual entrepreneurs are considered in arbitration courts. Cases involving private individuals fall under the jurisdiction of civil courts. The value of the claim also matters: claims up to 100,000 rubles are reviewed by magistrate judges.

A statement of claim should include:

• Parties’ details;

• Legal classification of the obligation;

• The amount of debt and justification for interest or penalties;

• References to legal provisions and contract terms;

• A list of supporting documents.

The plaintiff’s legal position may be based on the provisions of the Civil Code of the Russian Federation, the contract terms, and court decisions reflecting established judicial practice in similar cases.

Example from practice: The ruling of the Arbitration Court of the Moscow District dated 25.03.2024 No. F05-1959/2024 in case No. A40-226561/2023 confirms the validity of collecting unpaid debts if the plaintiff can prove fulfillment of their obligations, even when partial payment was made by the defendant.

4. Evidence Collection: Building a Solid Evidentiary Base

The burden of proof lies with the parties, according to Articles 56 of the Civil Procedure Code and 65 of the Commercial Procedure Code of the Russian Federation. The plaintiff must provide the following documents:

• A contract or promissory note;

• Accounting documents (acts, invoices, delivery notes);

• Correspondence confirming acknowledgment of the debt;

• Payment documents;

• The claim letter and any responses.

Even if there is no written contract, debt recovery is possible with other forms of evidence proving the obligation.

Example: In case No. 2-842/2022, the Ostankinsky District Court of Moscow granted a claim to recover a loan based on a promissory note, despite the defendant’s argument that there was only a verbal agreement. The court recognized the promissory note as admissible and sufficient evidence of the obligation.

5. Enforcement of the Court Decision: Debt Recovery Mechanisms

Obtaining a court decision is only part of the process. To actually recover the debt, enforcement proceedings must be initiated based on a writ of execution. Actions may include:

• Filing with the Federal Bailiff Service;

• Sending the writ to the debtor’s bank or employer;

• Imposing an arrest on the debtor’s property;

• Imposing travel restrictions on the debtor.

The statute of limitations for enforcing a writ of execution is three years.

6. Alternative Legal Remedies: Assignment, Bankruptcy, Mediation

In complex cases, alternative legal mechanisms may be used:

• Assignment of claim rights (cession agreement);

• Transfer of debt to specialized collection agencies;

• Initiating bankruptcy proceedings (if the debt exceeds 500,000 rubles and is overdue by more than 3 months);

• Engaging in mediation procedures.

7. Conclusion

Effective debt recovery is a complex legal process that involves assessing the legal grounds, gathering evidence, complying with procedural rules, and executing the court decision properly. To increase the chances of successful recovery, it is recommended to consult a qualified lawyer at the pre-trial stage. Timely and professional legal support helps minimize risks and increases the likelihood of actually recovering the owed funds within the legal framework of the Russian Federation.