How to recover debt from abroad without going to court? (FORBES)
Companies often have commercial claims towards their foreign counterparties in the course of their work. If a dispute cannot be resolved by business partners themselves, companies have to refer it to a third independent party, such as a judge or an arbitrator.
Usually, a company-creditor submits a claim to a state court, in order to recover a debt from its counterparty. Certainly, this method of dispute resolution is often neither cheap, nor effective. Court proceedings can last for many months or even for several years. In such cases, court fees and paychecks for legal services increase constantly. Sometimes, litigation-related expenses can reach the sum of the debt, making the whole litigation process literally useless.
For several decades, companies all over the world effectively use alternative ways, such as mediations and negotiations, to resolve commercial disputes with their foreign partners. The procedure is quite straightforward: if parties cannot resolve a commercial dispute independently, they appoint lawyers who guide them towards a mutually acceptable compromise solution.
Years of constant involvement in commercial mediations and negotiations in the vast majority of jurisdictions confirm the effectiveness of these methods. Companies are able to return their money and avoid high costs they would otherwise incur during court proceedings.
In Ukraine, however, mediations and negotiations are still less popular than standard litigations in state courts.
TCM Group Ukraine is one of the few local law firms, specialized in alternative dispute resolution. Being the part of a global network, TCM Group International, we are able to protect the interests of our clients in 145 countries around the world.
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