Debt collection in Lithuania refers to the legal process of recovering money that is owed by a debtor, whether an individual or a business, to a creditor. This process can involve several stages and different methods, depending on the specifics of the case. One of our specialists can guide you regarding the options available to you for recovering money from debtors. Whether it is an amicable procedure or a settlement in a court of law, our Lithuanian lawyers can represent you from the very beginning. We invite you to read these lines and familiarize yourself with the debt recovery procedures in Lithuania.
| Quick Facts | |
|---|---|
| Who can contact our debt collection lawyers in Lithuania? | Natural persons and business owners who want to recover their money from debtors. |
|
Types of debt collection in Lithuania |
By mutual agreement or through court proceedings |
|
Legislation |
– Law on Debt Collection Agencies, – Civil and Commercial Law |
| The first step in debt recovery | Sending notifications to debtors as reminder of due payments |
| Amicable collection of debts |
Parties can reach a new agreement related to debt payment. |
| Debt recovery in the court of law |
The court issues a decision that might imply an enforcement payment order. |
| We can prepare cases for further legal actions (YES/NO) |
YES |
| Negotiations |
New payment terms can be settled with the parties implicated. Our Lithuanian lawyers can tell you more details about negotiations. |
| New payment schedule proposed |
Possible |
| Is the amicable procedure available in bankruptcy cases in Lithuania? (YES/NO) | NO |
| The time frame to recover debts in Lithuania |
A few months or years, depending on the case |
| Customized approach |
Our debt recovery lawyers in Lithuania have experience in such cases and can propose varied strategies to collect the money. |
| International cases of debt collection |
Legal representation is offered by our attorneys in Lithuania. |
| No-win no-fee services |
The payment for our services is made once the debt recovery case is concluded. |
| Why work with our law firm in Lithuania? |
– experience in debt recovery, – efficiency, – constant communication, – transparency |
Table of Contents
Debt recovery in Lithuania through the amicable procedure
In the first phase, an amicable procedure for debt recovery in Lithuania can be used. This method involves the following:
- The process starts with the analysis of the receivables and the way in which crediting and previous payments were made;
- Notifications will be sent to debtors. They can be called and receive messages and/or formal notification letters regarding the payment of arrears;
- Once the notifications in question have been sent, a response from the debtors is expected. Normally, a period of time is offered to them, after which other measures will be imposed, depending on the answer provided;
- If the debtor has responded to the notifications, a meeting between the parties involved can take place. In this case, new payment terms can be established, by mutual agreement;
- The debt recovery case in Lithuania can only be resolved if the debtors respond to the notifications and agree to resume payments, according to a new agreement established in this regard. Otherwise, the debt recovery case may enter the attention of the authorities, respectively can be concluded in a court of law.
We remind you that you can benefit from legal services from our lawyers in Lithuania if you want to recover a debt. We represent both natural and legal persons as we are members of the Lithuanian Bar. You may also check this infographic with information about debt collection procedure in Lithuania:
Debt collection in the court of law in Lithuania
There are many situations in which debt collection in Lithuania cannot be resolved through amicable procedures. Practically, if this method does not yield results, new payment terms cannot be established. In this case, preparations are made for legal action, respectively it is resolved in a court of law. Our attorneys in Lithuania can file and support a claim in the court of law in Lithuania for recovering debts. Clients are represented in court where the judge decides for debt settlement. Such a decision can mean the extraction of debts from salaries, assets or other means, after their sale. In addition, the court’s decision enters into force right away, with the debtor being notified of it.
For claims up to €43,000, the district court has jurisdiction. For amounts exceeding this value, the regional court is appropriate. The judges may issue a payment order, which the debtor can contest within 20 days. If uncontested, the order becomes enforceable.
Before initiating judicial proceedings, creditors and debtors in Lithuania can opt for mediation to resolve disputes amicably. Since 2011, judicial mediation has been available, where a judge or assistant judge facilitates negotiations between parties. If an agreement is reached, it is recorded by the court and holds the same value as a judgment.
You can also watch this video presentation about debt recovery in Lithuania:
International debt collection
Lithuania is a member of the European Union, which allows for the use of EU-wide procedures for debt recovery, such as the European Payment Order (EPO). This system simplifies and speeds up the process of recovering debts across EU member states for uncontested claims, making it easier to collect cross-border debts.
The European Payment Order (EPO) and the European Small Claims Procedure (ESCP) make it easier for creditors to recover debts in Lithuania from debtors in other EU countries:
- EPO is a simplified process for recovering uncontested debts within the EU. It allows creditors to file for debt recovery across borders with reduced costs and no need for translations of documents;
- ESCP applies to claims of up to €5,000 and can be used to collect debts across EU member states. It is faster and more cost-effective than traditional court procedures.
Costs involved in debt collection in Lithuania
Engaging in debt recovery in Lithuania involves various costs, including court fees and enforcement expenses:
- Court fees: these are calculated based on the amount of debt being pursued;
- Bailiff fees: bailiffs charge fees for enforcement actions, which vary depending on the complexity of the recovery;
- Legal and collection agency fees: if the lawyers in Lithuania or debt collection agencies are involved, their fees are typically based on the agreement between the creditor and the service provider.
In many cases, the debtor may be required to pay these fees in addition to the principal debt.
Find support from our specialized attorneys in Lithuania in order to have a better understanding of the costs regarding debt collection in this country.
How to work with our debt collection agency in Lithuania
You can opt for the services offered by our debt collection agency in Lithuania and our lawyers for resolving debt non-payment situations. Here’s how our specialists can help you:
- We take over the presented case as soon as we receive supporting documents online. Our website can be accessed non-stop;
- Analyze the case to propose an amicable solution for debt recovery, in the first phase;
- We recommend the amicable procedure of recovering debts because it lasts around 2-3 months and is less expensive compared to settling in a court of law.
Data on debt in Lithuania
2024 data shows key statistics about household debt in Lithuania:
- In September 2024, household debt as a percentage of GDP (gross domestic product) in Lithuania was 28.5%, showing an increase compared to 2023 when it was 28.1%;
- In the same year, total household debt in Lithuania reached USD 24.4 billion;
- In August 2024, domestic credits in Lithuania reached USD 33.6 billion.
Our law firm in Lithuania also offers other services besides those for debt recovery. You can opt for our assistance if you are interested in immigration to Lithuania. We can also guide you and help you obtain residency in Lithuania. Furthermore, you can get personalized legal assistance if you already have residency in Lithuania and want to get Lithuanian citizenship.
Do not hesitate to contact us and learn more about our legal services.