How to recover a foreign debt without going to a court? (INTERVIEW)
What is an international commercial dispute?
It often happens that, in the course of doing business, one company makes commercial claims to another company. The fact that such claims have been already made shows the occurrence of a commercial dispute. However, if a dispute over certain financial issues arises between companies, operating in different countries, this dispute becomes an international one.
What is usually done by creditors that are willing to collect a debt from a foreign counterparty?
As a rule, companies submit their unsettled commercial disputes to courts. Traditionally, it is considered that a court trial is the most reliable way of dispute resolution. Nevertheless, it is quite obvious that this method is certainly not the cheapest one, neither in terms of court costs, nor in terms of time spent.
Is there any alternative to courts in resolution of commercial disputes?
In fact, such an alternative exists. For several decades, commercial disputes have been widely resolved through negotiations and mediation, where debt collection is done without submitting the matter to courts. Among lawyers, such methods are commonly referred to as alternative dispute settlement.
What are the distinctive features of alternative resolution of commercial disputes?
The essence of this method is quite straightforward. If counterparties cannot settle a dispute amicably, they request assistance of a third party, who could help them to find a solution. It is often the case that this third party is a court, which makes the resolution of a particular dispute relatively lengthy and expensive. However, if a dispute is resolved through negotiations or mediation, conducted by trained lawyers that serve as intermediaries, it is possible to significantly cut these costs. Dispute settlement lawyers carefully direct parties towards a desired result and help them to work out a compromise solution. Such solution usually allows creditor to collect the debt from debtor without putting the debtor in an unnecessary disadvantaged position.
How are international commercial disputes settled in Ukraine?
In Ukraine, court proceedings remain the most popular method of resolving commercial disputes with foreign counterparties. However, alternative dispute resolution has become more and more popular in recent years. The reason is clear: with the help of this method, a company can return its money without incurring excessive court costs. In 2014, the Ukrainian office of “TCM Group International”, an international law firm, specialized in international dispute settlement, was launched in Kyiv. Being represented in 145 countries, TCM Group Ukraine provides speedy recovery of debts all over the world for Ukrainian companies, without going through costly litigation.
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