Debt collection and enforcement proceedings in the Republic of Srpska: a guide for creditors and debtors

When you lend someone money, sell goods or provide a service, and the obligation is not paid within the agreed term, the creditor has the right to demand the fulfillment of the obligation. However, the existence of a debt does not mean that collection can be automatically enforced.

The method of collection depends on the legal basis of the claim, the documentation available to the creditor and whether the debtor disputes the existence or amount of the debt. Depending on the circumstances, collection may require litigation and then enforcement proceedings.

When can a creditor demand debt collection?

When the claim is due, and the debtor does not fulfill the obligation, the creditor can demand its fulfillment.

Before starting court proceedings, it is often useful to send the debtor a written warning for payment, which states the basis and amount of the claim and leaves an appropriate deadline for voluntary settlement of the obligation.

The notice can also be significant as evidence that the creditor tried to collect the claim before starting the procedure.

Litigation or enforcement?

Litigation

If the creditor does not have a document on the basis of which he can immediately demand execution, and the debtor does not acknowledge or pay the debt, it may be necessary to initiate civil proceedings.

Litigation is initiated by a lawsuit before the competent court. In the procedure, the parties present facts and propose evidence, after which the court decides on the merits of the claim.

A valid and enforceable court decision ordering the debtor to pay can then be the basis for initiating enforcement proceedings if the debtor does not fulfill the obligation voluntarily.

Enforcement procedure

When the creditor has an enforcement document, he can submit a proposal for enforcement in order to enforce the claim.

Under the conditions prescribed by law, enforceable documents can be court decisions and court settlements, certain notary documents, decisions made in administrative proceedings and other documents recognized by law as enforceable documents.

The Law on Enforcement Procedure for certain monetary claims also provides for the possibility of enforcement on the basis of an authentic document, under the conditions prescribed by law.

What property can be enforced?

Depending on the type of claim, the debtor's property and legal restrictions, enforcement can be carried out on different subjects and rights of the debtor.

This may include funds in accounts, a certain part of salary or other income, movable property, immovable property and other property rights that may be subject to enforcement under the law.

The choice of the appropriate means and object of enforcement can have a significant impact on the possibility and efficiency of collection.

What can the debtor do?

A debtor who has been served with a decision on enforcement may use legal remedies and other means of protection provided for by the Law on Enforcement Procedure, under the conditions and within the time limits prescribed by law.

Depending on the circumstances of the specific case, the debtor may dispute the existence of conditions for execution, indicate that the obligation has already been fulfilled, point out the statute of limitations when the conditions are met or use other means of protection provided by law.

Limitation of claims

Before starting the procedure, it is necessary to check whether the claim is time-barred.

The general limitation period in the Republic of Srpska is ten years, if no other period is prescribed by law. Special, shorter deadlines are prescribed for numerous types of claims.

For example, mutual claims from contracts for the sale of goods and services between legal entities become statute-barred within three years, with the statute of limitations running separately for each delivery of goods, performed work or service.

Due to different statutes of limitation, before starting the procedure it is necessary to determine the legal nature of the specific claim, the moment of its maturity and any circumstances that could affect the course of the statute of limitations.

Why hire a lawyer?

Before starting the collection procedure, it is necessary to assess the legal basis of the claim, the available evidence, the statute of limitations, the debtor's property and the procedure by which the claim can be realized most effectively.

The Topić law office provides legal assistance to creditors and debtors in connection with the collection of claims, including analysis of documents, drawing up reminders, initiation of civil and executive proceedings and representation before competent courts.

For information on the possibility of providing legal assistance, you can contact us via the contact form on the website or by phone at 051/220-270.

This text is informative and does not constitute legal advice for a specific case.