Top-Rated Debt Collection Agency in Latvia
Fast and reliable debt collection in Latvia - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
Recovering your debt in Latvia is most easily accomplished through this method.
Debitura specializes in debt recovery services in Latvia, providing a wide range of comprehensive solutions led by a team of experienced professionals. Our expertise covers accounts receivables management, pre-legal and legal debt collection, debt collection notices, and enforcement court proceedings. We pride ourselves on being well-versed in Latvia's debt collection laws and regulations, which enables us to offer efficient and effective solutions to businesses looking to recover outstanding debts.
We're with you every step of the way with our devoted support.
Tailored collection approach.
We have more than 500 specialists who are experienced in handling debt collection cases across borders.
Our debt collection service boasts a 87% success rate while maintaining the lowest cost.
Sorainen is a fully integrated international business law firm helping clients succeed in business. With 45 partners and more than 250 lawyers and tax specialists, we have the resources to support our clients on all business law and tax issues involving our region. Founded in 1995, the firm has worked on many significant mandates for international and local clients.
The ultimate guide about debt collection in Latvia
Are you facing a financial dispute with a business or customer in Latvia? Look no further! At Debitura, we have extensive experience in helping businesses recover debt in Latvia.
Navigating the debt collection process in Latvia can be difficult due to language and cultural differences, foreign laws, and distance. However, working with a collection agency that is familiar with the laws and customs of the country can make the process much simpler.
At Debitura, our priority is to get you your money back while maintaining a positive relationship with your customer. Our approach is fair but firm, and we strive to protect your reputation throughout the process. If you are interested in understanding the Latvian debt collection process in more detail, please continue reading this guide. If you prefer to work with a local law firm that specializes in debt recovery in Latvia, we are here to assist you.
At Debitura, we offer an easy way to collect your debts in Latvia and over 192 other countries. You can begin by submitting your claim on our platform. Within a day, we will evaluate your situation and give you three complimentary quotes from local debt collection attorneys in Latvia. Our approach combines a focus on people with the newest technology-based solutions to achieve success and improve communication. This holistic method guarantees you the results you want while maintaining positive relationships with your customers. Additionally, our network of debt collectors, attorneys, suppliers, and vendors are valuable connections that enable us to accomplish our tasks. We appreciate all of these partnerships, regardless of their size.
Begin the process of debt collection in Latvia today at no cost. Easily make a free profile and submit your case within 2 minutes.
We use a proven pre-legal recovery process to try and collect your claim during the first 3 months. Our service is 100% no-cure-no-pay.
If your claim remains unpaid during the pre-legal phase, we offer you three quotes from our nearby debt collection lawyers.
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Latvia
Are you facing difficulties in collecting debts from your Latvian customers? Let us alleviate your stress by assisting you in receiving payment from them.
In Latvia, the individual or entity owing a debt is referred to as "the debtor" while the one who issued the debt or invoice is referred to as "the creditor." When the creditor handles the collection process themselves, it is known as "first-party collection." On the other hand, if the creditor hires a third party to collect the debt, it is known as "third-party collections."
The debt collection process in Latvia
In Latvia, the procedure for collecting debt typically involves several stages. The illustration below illustrates our customary method for collecting debt in Latvia.
1 Upload your claim:
If you do not wish to handle recovering your debt on your own, you will begin the process by locating a debt collection agency and submitting your claim to them through their website. If you choose to use Debitura, we will furnish you with three quotes from local partners in the European country relevant to your case, and this service is completely free with no hidden obligations.
2 Amicable collection:
At Debitura, we typically start by sending friendly reminders to the debtor through various communication channels such as email, SMS, and letter. Our goal is to get the debtor to either pay or acknowledge the debt and start a payment plan. We also offer a no-cure-no-pay solution for amicable collection, meaning that you only pay a small fee if we successfully recover your debt. With Debitura, amicable collections are completely risk-free.
Once the amicable phase has passed and payment from the debtor has not been received, it is important to evaluate your options for proceeding. Our team will assess the amount of your claim, the likelihood of receiving payment, and other factors to help you make an informed decision on the next course of action. Typically, there are three options to consider.
If the amount of your claim is less than $2,000 to $5,000, it may not be financially viable to pursue further legal measures. In such instances, we suggest opting for "debt surveillance," where we will continue to contact your debtor and attempt to reach a mutually agreeable solution.
B: Legal collections:
It is suggested to initiate legal action for bigger claims. The procedure varies depending on the nature and magnitude of your claim. Typically, the procedure is anticipated to last between 12-18 months.
C: Debt enforcement:
If the person you are claiming from has acknowledged your claim or you have a court order, you can use the bailiff's court to enforce it.
Amicable collection in Europe
At Debitura, we provide a hassle-free and highly efficient method for resolving unpaid debts through amicable means. By submitting your claim to us, we will begin working on it within 24 hours. We will communicate with the debtor through various channels in Latvia, such as email, text message, mail, phone calls, and social media.
Our goal is to either:
A) Receive full payment or
B) secure a payment plan agreement from the debtor.
However, if the debtor disputes the debt, we will not be able to proceed with amicable resolution and will have to move forward with legal collection methods.
Get started with
amicable debt collection
Upload your claim and get started with our 100% no-cure-no-pay collection solution.
Legal collection in Latvia
If you haven't received payment for your claim during the initial phase or the debtor has disputed it, we will offer you 3 complimentary quotes from local debt collection attorneys. During the legal phase, our attorney will contact the debtor to negotiate payment. If necessary, our partners can also take legal action in Latvia and obtain a payment order, which can then be enforced through the enforcement court.
To ensure you get the best price for legal fees, it is recommended to obtain multiple quotes from different attorneys to compare. Debitura makes this process easy and convenient by allowing you to compare quotes with just a few clicks. The cost of legal fees can differ depending on the complexity and scope of your claim.
Get started with
legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Latvia
You can use the bailiff's court in Latvia to enforce your claim in Latvia if you have either a written acknowledgement from the debtor or a court order.
The process and cost for your situation may differ. To obtain three personalized quotes for your claim within 24 hours, upload your case to Debitura.
Get started with
Upload your claim and get 3 FREE quotes from our local collection partners.
European Late Payment Directive in Latvia
The Danish government is unable to establish regulations that are less favorable for creditors than the EEU-wide rules outlined above, due to its membership in the EU.
The directive includes the following key provisions:
- Public authorities are not allowed to establish payment terms that exceed 30 days.
- Companies that are not government-owned cannot demand that payments be made beyond 60 days.
- If the person you are owed money from is a company, you can charge a €40 fee for delayed payment as a minimum compensation.
- The interest rates for overdue payments must be at least 8% higher than the reference rate set by the European Central Bank.
As a member of the EU, the Danish government is not allowed to enforce regulations that are more detrimental to creditors than the EEU-wide rules previously mentioned.
The analysis is concluding that the risk of doing business in Latvia is low. Based on this low score, You can feel reasonably confident that you will be able to get paid when trading with customers in Latvia. Nonetheless, we always recommend doing a specific credit analysis on an individual customer basis before offering any credit. The low risk score is based on the following factors:
The economic risk in Latvia
Economic risk in Latvia is low (2 out of 6). An economic risk of 2 out of 6 is relatively low in Europe.
GDP and economic growth are critical drivers for economic risk.
The GDP of Latvia is 38,87 bn. USD (2021), growing by 4,48% per year.
In terms of the size of its economy, Latvia ranks #92 out of 183 countries and has a medium-sized economy.
In terms of growth rate, it is ranked #91 out of 183 countries and is therefore considered an excellent growing economy.
GDP per capita is 20642 USD, ranking Latvia number #42 out of 183 countries. This means the purchasing power of citizens in Latvia is high compared to the rest of the world.
You can see a more detailed picture of GDP and economic growth in Latvia in the table below:
Another significant influencer for the economic risk score is the inflation rate and the interest rates. You can see a more detailed overview of monetary data points in Latvia in the table below:
The inflation in Latvia was 3,3% in 2021 which is considered a low inflation rate.
The business environment risk in Latvia
Our analysis shows that the business environment risk in Latvia is very low (1 out of 6), which is a relatively low risk score in Europe.
Economic freedom and rights has a big influence on the business environment risk in a country. The critical facts for Latvia in the table below:
In the above table, you can see, the property rights index is 75 in Latvia, which is considered pretty average in Europe.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 77 in Latvia, a pretty average score for a country in Europe.
Latvia's overall economic freedom index is 72 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Latvia
The political risk in Latvia is very low, with a score of 1/6. This is a low political risk score in Europe.
The governance and political stability indicators are critical drivers for political risk. An overview of Latvia can be seen in the data below:
The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.
When doing business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Latvia, the rule of law index is at 0,98 points, with the score going from -2.5 (weak) to 2.5 (strong). Latvia has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.
Other drivers for the very low political risks are the average control of corruption, the average political stability index, and the normal shadow economy that is 16,62% of Latvia's GDP.
The commercial risk in Latvia
In Latvia, the commercial risk score is 4/4, which in our model is a high score. This high commercial risk score is high compared to the average in Europe.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Latvia in the table below:
Latvia has a foreign exchange reserve of 5.49 bn. USD.
Latvia has a negative trade balance of -2,08% of GDP. What this means is that Latvia imports more goods and services than the country exports.
The annual growth of exports of goods and services has been growing 6,18% annually - now 64,07% of GDP. Import of goods and services represents 66,15% of the GDP in Latvia.
The financing risk in Latvia
We have calculated the financing risk to be 1/4, which equals a very low risk. A very low financing risk score is relatively low for countries in Europe.
The country's banking system, efficiency, and stability influence the financing risk. Additional facts and info can be found for Latvia in the table below:
In Latvia, the credit information sharing index is 8 on a scale from 0 (low) to 8 (high). The consequence of that number, is that the access and quality of credit information available in Latvia is high.
This makes it easy for you to understand the credit risk of your counterpart in Latvia. You should therefore be able to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.
Your rights as a creditor are 9 out of 12 and, therefore, strong.
Debt Collection in Latvia: Frequently Asked Questions
Debt collection in Latvia involves either handling the process directly (first-party collection) or hiring a third-party to collect the debt (third-party collection). At Debitura, we offer a free service to upload your claim, followed by amicable collection where we send friendly reminders to the debtor. If payment is not received, we evaluate options including surveillance for smaller claims, legal collections for larger claims, and debt enforcement with a court order. Our approach is risk-free, and you only pay a small fee if we successfully recover your debt.
The debt collection process in Latvia typically involves three stages: pre-legal collection, legal debt collection, and debt enforcement. At Debitura, we start by sending reminders to the debtor and offer a risk-free, no-cure-no-pay solution for amicable collection. If payment is not received, we evaluate options for proceeding, including debt surveillance for smaller claims and legal collections for larger ones. Debt enforcement through the bailiff's court can be used if the debtor has acknowledged the claim or a court order has been obtained.
Legal options for debt collection in Latvia include initiating a civil lawsuit if the debt is disputed. Additionally, debt enforcement and insolvency proceedings can be pursued. It is important to note that legal actions require the assistance of a local lawyer. Our services offer complimentary quotes from local debt collection attorneys to negotiate payment and take necessary legal action. It is recommended to obtain multiple quotes to compare legal fees.
Debt collection costs in Latvia vary depending on the specific case and desired actions. Debitura offers a no-cure-no-pay model for pre-legal collection with a success fee between 10-20%. For legal actions, the price varies. Debitura can provide you with 3 quotes from the best debt collection lawyers in Latvia to help you choose the best option for your case.
The duration of debt collection in Latvia depends on various factors, including the debtor and the case itself. If the matter can be resolved in the pre-legal phase, the collection process usually lasts between 3-6 months. However, if legal action is required to collect the debt, the process usually takes between 12-18 months. The timeframe can vary based on the case's complexity and the debtor's cooperation.