Pretrial phase of debt collection

The method of collecting accounts payable depends on particularities of every case. 

Pretrial collectionis a debt collection method based of negotiations between competent specialists and debtors with the goal of resolving a debt repayment issue with the minimal financial losses for both the debtor and the bank. Pretrial debt collection is ranked first among all possible methods of resolving debt-related conflicts. The main reason for that is that this method benefits not just the creditor but also the debtor: it helps both parties avoid substantial time-related, labor and financial costs. In the pretrial phase of debt collection a debt repayment issue is possible to resolve on mutually-beneficial terms for the debtor and the creditor by using various debt restructuring forms and various types of fulfillment of financial obligations in installments.


It is very important for creditor and debtor to determine and localize the reasons for occurrence of accounts payable at early stages or in the course of preventive operations. In that case, effectiveness of both creditor’s and debtor’s efforts aimed at prevention and settlement of accounts payable will be the greatest.
Main stages of pretrial debt collection process:
  •    prior notification about maturity of debt;
  •    notification of debtors about past due obligations (sms notification, delivery of voice messages, notification by e-mail);
  •    telephone calls and consulting of debtors;
  •    preparing and sending written notices of outstanding debt to debtors;
  •    payment remittance control;
  •    meetings and talks with debtor at the latter’s place of residence.
The next stage of debt collection process is the filing of creditor’s complaint against debtor. The filing of complaint signifies the beginning of both pretrial and judicial stages of debt collection process, because under Ukrainian law, if a complaint was filed it must be accompanied by a document confirming the parties’ intention to settle the dispute out of court.
If accounts payable collection methods that include negotiations and other pretrial procedures don’t work and a debtor continues to dodge his obligations, the bank will go to the next stage of legal relationship: enforced collection of debt. It, in turn, means additional expenses for debtor and prolonged debt settlement timeframe.
If a creditor and a debtor have failed to settle debt in the pretrial phase and the issue cannot be resolved otherwise, it should definitely be resolved in court. And the creditor has excellent changes to resolve it successfully.