Debt collection Latvia
Latvia has small economy which is tightly connected to EU with negative balance of foreign trade.
The main sectors of the Latvian economy are agriculture, chemicals, logistics and woodworking.
The main partners in foreign trade are from EU, though Russia is still important market for Latvia. Apart from neighbor Lithuania and Estonia, the main partners are Germany, Poland and UK.
Latvian culture is western one with considerable impact of Russian culture.
National language is Latvian from Baltic languages group. However, de facto, Russian is official and business language spoken and understandable for the majority of population. English is quite developed; it is spoken by young people in the cities and businessmen.
No specific challenges of debt collection in Latvia are observed.
How to collect debt in Latvia?
Amicable collection is the most effective and cost-saving way to recover debt in Latvia. It is advised to refer case to collection when the debt is delinquent over 5 months. The less delinquency is the more chances to collect debt are.
Amicable collection is applicable almost in any case apart from case of debtor’s bankruptcy or liquidation.
Amicable collection is still possible even after statute of limitations (3 years) expired, though chances to collect in such case would be very small.
Whether amicable pre-legal collection proves to be ineffective, we check prospects of legal actions to recover the debt. Whether debtor is solvent and prospects are good, we will suggest optimal solution how to recover debt via legal actions in Latvia.
What we do to recover a debt in Latvia?
- study case details
- find core reason of failing to pay
- find debtor’s decision makers and financial controllers
- arrange negotiations with the debtor
- consult in finances to enable debtor to pay
- consult in local legislation and business threats to convince debtor to pay
- negotiations with the both parties about payment schedule
- control flow of the debtor’s promises and payments
- prepare case for legal actions
- file and support claim in court
- support enforcement of court award
How long it takes in Latvia?
Average time to recover debt in Latvia is 56 days.
What the fees are?
The success fee makes 10% commission from any money recovered.
No collection – no fee policy applies.
For legal collection, fees are calculated individually for every case, depending on nature of the case, debt amount, debtor’s location.
- we have debt recovery experience in Latvia
- we know local Latvian laws, finances and customs
- we understand local Latvian languages
- we charge no fees, unless debt is recovered
- we provide operative reporting
How to send case?
- Send your unpaid invoices and supporting documents for our review.
- Sign our debt collection contract and POA received from the manager.