Debt collection cases are increasing in St. Petersburg
The largest number of applications for recovery of loans and borrowings, approximately 80%, comes from banks and MFIs.
"Regarding a small debt, banks, having received a judicial act on the initiation of proceedings, apply to the bailiffs and seek seizure of the debtor's accounts,” explains Karina Sidorova, Head of Crisis Management and Bankruptcy Practice of the Duvernoix Legal law firm. “Another thing is the foreclosure on the pledge. It is possible to initiate this procedure against an individual only when a court decision has entered into force. This approach is used by banks, for example, for mortgages."
The situation is different with disputes in courts of general jurisdiction between banks and large businessmen. As practice shows, entrepreneurs, receiving large loans from banks for their business, themselves act as guarantors for them.
"When the basis of the debt is not a loan agreement, but a guarantee agreement, banks are forced to obtain a judgment on the debt in order to file for bankruptcy of an individual guarantor," Karina Sidorova clarifies.