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Expert Opinion: Continuing Crisis Will Reduce the Number of Disputes on Debt Collection

Date of publication: 8 January 2013

Roman Marchenko, Senior Partner, Attorney at Law

Source: Ekonomichna Pravda

In 2012, the category of the most common of claims has not changed: these are the cases on recovery of debts, mainly with participation of banks and other financial institutions.
It was stated by Roman Marchenko, the senior partner of Ilyashev & Partners Law Firm.
«To protect themselves the debtors file counterclaims on invalidation of the loan agreements. There is only one reason for this state of affairs – financial and economic crisis that resulted in the financial insolvency of the debtors», said Marchenko.

According to the expert, the next very common category of cases is bankruptcy cases. Surely, thousands of such cases are considered in the country for a year. Another very common category of cases are claims on invalidation of the tax notices-decisions.

«Even if the inspector understands that his claims are groundless, the management makes him to implement the plan and fine the company. Naturally, the taxpayers are forced to go to court constantly to challenge such decisions», said the expert.

Marchenko said that if the crisis continued, the situation would change. Firstly, the new large loans are almost not granted, and the old ones are gradually repaid or recovered. Therefore, the number of disputes on recovery will gradually decrease. There will be no «feeding» in the form of new unpaid loans. It will continue as long as a new stage of lending begins.

«To the credit of the current government, it tries to bring order to the workload of the courts. We used to go to courts for many kinds of cases, considering that a judge is more amenable than an official. Currently, the procedure has become more well-ordered», said the expert.