Debt collection in Bosnia Herzegovina
Debt collection in Bosnia and Herzegovina
aus den Rechtsgebieten Ausländerrecht & Asylrecht, Forderungseinzug & Inkassorecht, Insolvenzrecht, Internationales Recht, Internationales Wirtschaftsrecht, Debt Collection in Bosnia and Herzegovina
The following courts are competent for collection of commercial receivables in Bosnia and Herzegovina: In the first instance court proceedings in the Federation of Bosnia and Herzegovina those are Municipal courts at the seat of the Canton, there are ten such courts in the Federation of BiH.
In the first instance court proceedings in the Republic of Srpska Entity those are district commerical courts, five of them, the District Commercial Court Banja Luka, District Commerical Court Bijeljina, District Commercial Court Doboj, District Commerial Court Bijeljina, District Commercial Court Istočno Sarajevo.
It is important to mention that the Law on Obligations applied in Bosnia and Herzegovina foresees the statutory limitation period for claims between legal persons of 3 years, and between natural persons the limitation period is 5 years. The written acknowledgment of debt or payment of a portion of the debt restarts the statutory limitation period.
Default interest is a fundamental right of the creditor when the debtor is late with the fulfillment of financial obligations, in Bosnia and Herzegovina the legal default interest is relatively high at around 12% per year.
The default interest is not contracted and its payment is not conditioned by damage incurred to the lender. However, when it comes to interest rates, they can also be arranged, and such interests are called contracted interests or conventional interests.
The most important activities to be carried out against the debtor are as follows:
•Analyse the solvency of the debtor in Bosnia and Herzegovina.
•Search for the debtor in order to return the money they owe.
•Contacting the debtor and written warnings prior to the lawsuit.
•Implementation of the execution proceeding against the debtor if there is a judgment.
•Finding a report on the state of the debtor's account through the Central Bank of Bosnia and Herzegovina.
•Inititation of the proceedings before the competent court in Bosnia and Herzegovina in order to collect the debt.
In most cases we recommend customers to submit the final demand letter written by a professional law firm. In many cases this letter leads to the payment in total or offer to pay the debt in installments.
Any process of dispute resolution is approached methodically and analytically. Clients immediately receive a process risk analysis, insight into the strategy of the procedure, collection of evidence and drafting legal documents at all stages of the proceedings and receive regular monthly legal reports.
Our service of debt collection includes collection and enforcement of the domestic and foreign debts in Bosnia and Herzegovina as well as the implementation of the execution decisions and previously passed judgments abroad. World reputable collection agencies cooperate with us and regularly use our office for enforcement of claims before courts in Bosnia and Herzegovina.
In addition, our law firm participates very actively in courts in terms of debt collection and recovery of clients' pledges, as well as enforcement of final court decisions.
Our law firm represents clients in all types of court proceedings. Our team is a leader in litigation, arbitration and alternative dispute resolution mechanisms.
In the process of debt collection we contact customers who owe money through written reminders, telephone and direct talks. Our main goal as a law firm Prnjavorac is to ensure the payment of your claims. At the same time we are aware of the importance of preserving the existing business relationships. Therefore, it is our goal to return debts without jeopardizing the relationships between you and your client if possible without court proceedings.
ABOUT THE AUTHOR: Alma Prnjavorac, attorney at law
Law office of Prnjavorac