C. MAVROCOSTAS & Co. LLC

C. Mavrocostas & Co. LLC is a commercial law firm that operates in the Republic of Cyprus. We specialize in Contract Law, Banking Law, Debt Collections, Company Law, Insolvency Law, Land Law and Employment Law. 

Our Founder and Managing Partner, Mr. Costas Mavrocostas, is an accredited commercial lawyer in the Republic of Cyprus since 2010, with vast experience in disputes arising from commercial transactions. Hence, since our firm’s establishment in 2018, we have been involved in numerous commercial disputes, commercial litigation processes, debt restructurings, intercompany disputes, winding-up processes, and debt recoveries.

Due to our firm's commercial nature, we possess huge experience in recovering debts and have been appointed to this task by various corporate organizations including insurance companies and debt recovery agencies. A quick description of the recovery process that our firm uses is as follows:

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1. Liaise with our prospective clients to address the dispute with the debtor/s.
2. Identify each debtor and examine whether the debt is recoverable. 
3. Please note that if the matter is urgent and/or the creditor has indications that the debtors will attempt to alienate their property, then our firm can file a court action with a subsequent interim application to issue an interim freezing order on the debtor’s assets. This procedure however can only be used on certain occasions based on the merits of the case. If this option is used, then we bypass steps 4 – 6 below. 
4. After the debtor is identified, we attempt to recover the debt with pre-legal means (phone contact, demand letter, contract termination process etc).
5. If the debtor refuses to settle the debt, we contact our clients to examine the possibility to file a court action or initiate arbitration proceedings (depending on the terms of the contract) for debt recovery. In the case where the debtor is a legal entity, instead of an action we can examine the possibility of filing a petition for winding up, something which will only be applicable in certain cases and we will liaise with the client before doing so.
6. After the court or arbitration proceedings are initiated, we examine the possibility to settle the dispute with the debtor’s lawyers.
7. If the dispute is not settled, then a judgment shall be issued, and the debt will be treated as a “judgement debt”. 
8. In the case where an arbitration judgement is issued, it can be registered at the court’s registry for judgment execution purposes described below. 
9. The judgement debt is recoverable through several judgment execution procedures, monitored by the court such as:

• A: Register a judgement encumbrance on the debtor’s immovable property. After the registration, the debtor will not be able to transfer the property without settling the debt. Alternatively, once a year has elapsed from the registration of the encumbrance we can apply for the sale of the burdened property.
• B: Apply for an order to encumbrance the debtor’s shares in a company or companies.
• C: Apply of the issue of a writ of movables for the seizure and liquidation of the debtor’s movable property.
• D: Apply for an order for the recovery of the debt through monthly installments (based on the debtor’s financial capability). 
• E: Initiate insolvency proceedings.

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Kindly note that the above are not a legal opinion but a mere description of the debt collection process in Cyprus. Any process described above will only be used after consulting with our prospective clients, who will undergo our KYC process, and conflict checks before engaging us to proceed. Our firm will be happy to assist you on anything further.

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