CURRENT ISSUES IN THE WAYS OF DEBT RECOVERY FROM JOINT DEBTORS

Abstract

The article discloses actual theoretical and practical issues, which usually appears in front of creditor, who faced a problem when joint debtors do not comply with their duties. It also includes analysis of principles of uprising and implementation of joint obligations. The article adduces practical resolution of these issues and proposals for legislative removal of legislative gaps.

Failure to meet obligations in disbursement of a loan and payment of the interest is the main subject of the majority of cases during the recent years, both in civil and commercial law. Moreover, increases a number of cases when such legal relations are becoming the subject of criminal proceedings. The main reason for these phenomena is an effect from financial crisis, but we can’t exclude also some factors that exist at a stable time, namely, cases of financial fraud, ineffectual business planning, unsatisfactory client selection by creditors.

Regardless of the reason of debt creation, the process for its collection is always quite similar: commencement of an action ‒ application of injunctive relief ‒ judicial examination ‒ rendering of decision ‒ levying of execution of a judgement.

Duration and effectiveness of each stage of this process directly depends on the perseverance of the parties.

Cases when the judicial decision does not clearly shows the responsibility of certain party and just divide responsibility between defendants are rather complicated from the legal point of view.

Above mentioned issues should be finalized by the legislator, since it is his responsibility to provide a qualitative and understandable model of debt collection. Instead, creditors are forced to seek for an answer in judicial practice, while the essence of the joint liability is clearly defined theoretically.