Enforcement proceedings for debt recovery under a service agreement

Obtaining and Submitting a Writ of Execution

A writ of execution is an official document confirming the creditor's right to demand compulsory enforcement of a court decision. Without it, it is impossible to initiate enforcement proceedings or recover debt directly through a bank.

Procedure for Obtaining a Writ of Execution

After the court decision enters into legal force (by expiration of 30 days from the date it was issued, provided no appeal was filed), the creditor files an application for the issuance of a writ of execution.

In commercial (arbitrazh) cases, the procedure is established by Article 319 of the Arbitrazh Procedural Code of the Russian Federation, and in courts of general jurisdiction, by Article 428 of the Civil Procedural Code of the Russian Federation.

The court is required to issue the writ of execution within 5 days from the date the application is received.

Contents of a Writ of Execution

The document specifies:

• The name of the court that issued the writ.

• Identifying data of both the creditor and the debtor.

• The exact operative part (rezolyutivnaya chast) of the court decision.

• The exact recovery amount (principal debt, interest, legal expenses).

• The date the decision entered into force.

The writ is signed by a judge and certified with an official state seal.

Methods of Submitting a Writ of Execution

There are two primary paths available:

A. Through the Federal Bailiff Service

An application to initiate enforcement proceedings must be attached to the writ of execution. Documents can be submitted:

• In person to the division of the Federal Bailiff Service at the location of the debtor or their property.

• By mail via a trackable registered letter.

• Electronically through the Gosuslugi (State Services) portal.

The bailiff is required to issue a decree on the initiation of enforcement proceedings within three days from the receipt of the documents (Article 30 of Federal Law No. 229-FL).

B. Directly to the Debtor's Bank

The creditor has the right to send the writ of execution directly to the bank where the debtor holds a settlement account, bypassing the Federal Bailiff Service entirely.

• This method is provided for by Article 8 of Law No. 229-FL and significantly shortens recovery times.

• The bank is obligated to debit the funds from the debtor's account and transfer them to the creditor immediately, provided funds are available.

Other submission methods:

• To the accounting department of the debtor organization (if the exact source of income is known).

• To the tax authorities—if necessary to identify the debtor's active accounts and assets.

• Through a KDpartners representative acting under a notarized power of attorney.

Initiation of Enforcement Proceedings

Enforcement proceedings are initiated after the creditor submits the writ of execution and a formal application to the Federal Bailiff Service. From this moment, the process of compulsory debt recovery begins.

Grounds for Initiation

In accordance with Article 30 of Federal Law No. 229-FL "On Enforcement Proceedings", a bailiff must initiate enforcement proceedings within three days of receiving the documents if:

• A valid writ of execution is presented.

• The application is signed by the creditor or their authorized representative.

• Valid banking details for transferring the recovered funds are specified.

Decree on the Initiation of Enforcement Proceedings

After verifying the documents, the judicial bailiff issues a decree to initiate enforcement proceedings, which:

• Specifies the exact debt amount and the parties' identification details.

• Establishes a deadline for voluntary compliance—5 working days.

• Warns the debtor of potential compulsory enforcement measures if they fail to comply.

The decree is formally sent to both the creditor and the debtor.

Voluntary Compliance with the Decision

Within the established 5-day timeframe, the debtor can voluntarily pay the debt, avoiding additional costs and statutory penalties. If this does not occur, the bailiff immediately transitions to compulsory measures, including freezing accounts, property, and other assets.

Duties of the Judicial Bailiff

The bailiff is legally required to:

• Take proactive measures to identify the debtor's accounts and property.

• Send official inquiries to banks, tax authorities, Rosreestr (Federal Service for State Registration), and the traffic police (GIBDD).

• Inform the creditor about the measures taken.

• Transfer the recovered funds to the specified account.

Further Progress of the Case

After the voluntary compliance period expires, the bailiff:

• Issues a decree to collect an enforcement fee (7% of the debt amount, but not less than 1,000 rubles).

• Applies compulsory enforcement measures (seizure, confiscation, travel restrictions).

• Sends notifications to the parties.

Compulsory Enforcement Measures

If the debtor fails to comply with the court decision voluntarily, the judicial bailiff applies compulsory enforcement measures. Their scope is established by Article 68 of Federal Law No. 229-FL "On Enforcement Proceedings" and is directed at the actual recovery of outstanding debts.

Freezing of Funds and Accounts

One of the first and most effective measures is freezing the debtor's bank accounts and electronic wallets.

The bailiff sends inquiries to banks through an interagency electronic interaction system and blocks funds until the debt is fully settled.

If funds are available, they are debited in favor of the creditor.

Seizure of the Debtor's Property

If there are no funds in the accounts, the bailiff seizes movable and immovable property: vehicles, equipment, machinery, and real estate. Subsequently, the property can be sold at a public auction, and the proceeds are directed to the creditor.

Foreclosure on Wages and Income

The bailiff has the right to issue a decree to deduct the debt from the debtor's salary, pension, or other regular income.

The statutory restriction is a maximum of 50% of the income (Article 99 of Law No. 229-FL).

This method is highly effective for recovering debts from individuals.

Seizure of Accounts Receivable

If the debtor is a corporate entity, the bailiff can foreclose on the accounts receivable owed by its counterparties. This allows for debt recovery using funds that third parties are obligated to pay to the debtor.

Restrictive Measures

For debtors evading the execution of a court decision, the bailiff applies additional restrictions:

• A ban on registration actions involving property (vehicles, real estate).

• A temporary restriction on leaving the country.

• A ban on opening new bank accounts.

• Blocking the settlement operations of a legal entity.

Subsidiary and Personal Liability

If there are signs of bad-faith behavior (such as asset stripping or artificial company liquidation), it is possible to recover funds directly from the director or founders through subsidiary liability.

Monitoring the Actions of Bailiffs

Monitoring the actions of judicial bailiffs is a critical part of enforcement proceedings. In practice, it is at this stage that primary difficulties arise: procedural delays, superficial checks, and a lack of real recovery measures.

Duties of the Judicial Bailiff

Under Article 64 of Federal Law No. 229-FL, the bailiff must:

• Take all measures provided by law for the actual execution of the court decision.

• Send inquiries to banks, Rosreestr, the traffic police, and tax authorities.

• Freeze accounts and seize the debtor's property.

• Inform the creditor about the progress of the proceedings.

• Transfer the recovered amounts within the established timeframe.

Typical Problems in the Work of the Federal Bailiff Service

In practice, creditors often find that:

• The bailiff does not send inquiries on time.

• Fails to apply measures against debtor executives.

• Remains inactive despite having explicit information about property.

• Terminates proceedings prematurely without sufficient grounds.

Each of these violations can be appealed if it impedes the execution of the court decision.

Appealing the Inaction of Bailiffs

In accordance with Article 122 of Law No. 229-FL, the creditor has the right to file:

• A complaint through the chain of command to the senior judicial bailiff.

• A complaint to the prosecutor's office regarding the violation of the creditor's rights.

• An application to the court to recognize the bailiff's actions (or inaction) as unlawful.

Motions and Additional Measures

If necessary, you can initiate:

• A request to conduct a formal search for the debtor's hidden property and accounts.

• A motion to seize specific assets.

• A re-submission of the writ of execution.

• A foreclosure on accounts receivable or the property of third parties.

These measures increase the overall efficiency of enforcement proceedings and shorten the time required to recover funds.

Alternative Methods for Executing a Court Decision

It is not always necessary to wait for the actions of judicial bailiffs to recover a debt. The law grants the creditor the right to use alternative execution methods, which often allow funds to be received faster and with less time investment.

Submitting the Writ of Execution to the Debtor's Bank

Under Article 8 of Federal Law No. 229-FL, the creditor can independently send the writ of execution directly to the bank where the debtor holds an active settlement account. The bank is required to:

• Block the debtor's funds.

• Debit the debt amount and transfer it directly to the creditor.

• Notify the parties of the completed operation.

This method is viable if the creditor possesses reliable information regarding the debtor's settlement account details.

Recovery via the Debtor Organization's Accounting Department

If the debtor receives regular income from third parties (for instance, as a contractor or tenant), the writ of execution can be sent to the accounting department of the respective organization. In this case, deductions are made from the sums due to be paid to the debtor. This mechanism applies when the debtor is a legal entity with permanent counterparties.

Foreclosure on Accounts Receivable

If there is information that other companies or individuals owe money to the debtor, the bailiff or creditor can apply to the court with an application to foreclose on those accounts receivable. This tool allows money to be received directly from the debtor's counterparties, bypassing their accounts.

Initiating Debtor Bankruptcy Proceedings

If the debt amount exceeds 300,000 rubles and the debt remains unpaid for more than three months, bankruptcy proceedings can be initiated against the debtor. During the procedure, it is possible to:

• Uncover assets hidden by the debtor.

• Hold the corporate director subsidiarily liable.

• Recover the debt directly from the bankruptcy estate.

Judicial Appeal of Bailiff Inaction

If the Federal Bailiff Service remains inactive, the creditor is entitled to file an application in court to declare the actions (or inaction) unlawful. The court obligates the bailiff to resume proceedings, take specific measures, and establishes strict oversight over enforcement.

Completion of Enforcement Proceedings

According to Article 47 of Federal Law No. 229-FL, a bailiff issues a decree on the termination of enforcement proceedings in the following cases:

• The recovered amount has been fully transferred to the creditor.

• Recovery is deemed impossible (no property found, debtor officially liquidated).

• The writ has been sent directly to the workplace or bank for ongoing deductions.

• The enforcement document is returned to the creditor upon their personal application.

Right to Re-submit a Writ of Execution

If the debtor cannot be found or temporarily lacks property, the bailiff returns the writ of execution to the creditor. However, this does not strip away the right to re-submit:

• The document can be filed again within three years from the moment of its return (Article 21 of Law No. 229-FL).

• If debtor assets appear later, the recovery process resumes in full.

Enforcement Proceedings Abroad and in Russia

The authority of the Federal Bailiff Service extends only to the territory of the Russian Federation. To recover assets abroad, a procedure for the recognition and enforcement of a court or arbitral decision is required in the country where the debtor's assets are located.

The starting point is asset localization (accounts, real estate, company shares, receivables). The enforcement jurisdiction is chosen based on where enforcement can realistically be levied.

• Russian Court Decisions: Executed abroad if there is an international treaty on the mutual recognition of judicial acts or based on the principle of reciprocity under the law of the respective country.

• Arbitral Awards (including ICC/LCIA/SIAC/VIAC/ICAC): Enforced through the mechanisms of the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. In practice, this is often a more predictable route for cross-border recovery.

Recognition and Enforcement Procedure

The standard sequence includes:

1. Obtaining a certified copy of the decision/enforcement document.

2. Translation into the official language of the enforcement state.

3. Obtaining an apostille or legalizing the documents (depending on the country).

4. Submitting an application to the competent court/authority with a package of evidence proving proper notification of the defendant and compliance with due process.

5. Obtaining permission for enforcement and transferring it to local compulsory enforcement authorities (judicial bailiffs, marshals, or private enforcement agents—according to the law of the specific country).

In several jurisdictions, temporary interim measures are possible prior to or parallel with the recognition procedure: freezing accounts, banning asset disposal, etc.

Enforcement of Foreign Decisions in Russia

If a decision is rendered abroad, its enforcement in the Russian Federation is carried out through an arbitrazh court at the location of the debtor or their property. For foreign arbitral awards, the New York Convention applies; for foreign court decisions, the relevant international treaties of the Russian Federation or reciprocity apply. Requirements for the document package include translation, proper certification, and explicit proof of notification.

KDpartners Services at the Enforcement Stage

KDpartners provides full support for enforcement proceedings, ensuring actual debt recovery and control over the execution of the court decision. We achieve the actual return of funds using all tools provided by law.

Obtaining and Submitting a Writ of Execution

Company lawyers obtain the writ of execution after the court decision enters into force and submit it to the Federal Bailiff Service or directly to the debtor's bank. We choose the most effective recovery method to minimize execution times.

Monitoring the Actions of the Federal Bailiff Service

KDpartners interacts with judicial bailiffs, sends inquiries, motions, and complaints, and monitors the application of recovery measures. We achieve:

• Freezing of the debtor's accounts and property.

• Asset tracing and identification.

• Issuance of decrees on restrictive measures.

• Regular updates and reporting on the progress of the proceedings.

Application of Compulsory Enforcement Measures

We accompany the process of levying seizures, confiscating property, foreclosing on accounts receivable, and initiating subsidiary liability of executives. Every action is documented to eliminate any opportunity for the debtor to evade the decision.

Appealing the Inaction of Bailiffs

In cases of process delays or formal refusals, KDpartners files complaints through the chain of command and to the court. We secure the resumption of enforcement actions and the restoration of the creditor's violated rights.

Completion and Oversight of Execution

At the final stage, the company's lawyers verify the transfer of recovered sums, the accuracy of calculations, and the legality of terminating proceedings. If necessary, the writ of execution is re-submitted.

KDpartners ensures results at the stage where most processes get "stuck". We control every step—from the initiation of proceedings to the arrival of funds in the client's account, ensuring real rather than formal execution of the court decision.