Debt collection in Cyprus
By Melina Karaolia, M. Eliades & Partners LLC
In a euro-crisis reality, when clients don't pay their dues, it means business and cash flow shrinks even further. Debt collection in Cyprus is definitely a challenging task. The process is usually initiated with a notice to the debtor. If there is no response, a claim is filed to the District Court that has jurisdiction. The claim is served upon the debtor who then has ten days in which to file an appearance before the Court.
If the debtor fails to file an appearance to the claim, the claimant will be entitled to proceed and request the court to issue judgment against the debtor, ordering payment of the debt plus interest and costs. The claimant will then take measures for the execution of the judgment, which may include, among others, the issue of a writ on movable property, the registration of the judgment on immovable property and initiating bankruptcy proceedings against the debtor.
If the debtor files an appearance to the claim, the case may be prolonged to allow the debtor to file a defence. Following filing of the pleadings, if no interim applications are filed, the case is set for instructions and hearing. Under these circumstances it may take a long time to issue judgment. It is important to seek proper advice, preferably from legal experts who can provide professional assistance with legal measures, having considered any credit assessment reports or asset investigation options available. Prompt action is required, as well as a wise choice of counsel and a legal advisor to initiate the debt collection process.
Melina Karaolia, Partner
M. ELIADES & PARTNERS LLC, Nicosia, Cyprus
T: +357 22 66 77 30
Melina Karaolia is a partner at M. Eliades & Partners LLC. Her work encompasses a diverse range of corporate and litigation matters. She advises clients on a range of commercial, civil law issues and business law disputes. She is a member of the Chartered Institute of Arbitrators and the Association of International Petroleum Negotiators.
M. Eliades & Partners LLC operates with a very clear and simple objective: to understand the needs of clients operating in the European and global environment, and to provide them with creative, timely and cost effective legal and advisory services. The firm serves a broad base of clients principally from the EU, but also from the U.S, Russia, Asia and beyond, while maintaining worldwide professional relationships through its membership with Geneva Group International.