Debt settlement

Debt purchasing works both ways, and this page is for both parties.

If you are buying a debt, the key question is not ‘how much’, but whether it actually exists: has the limitation period expired, has the contract been contested, and does the debtor have any assets from which the debt can be recovered? Buying an overdue debt from someone with no assets is like buying a piece of paper.

If your debt has been sold to debt collectors — check the legality of the assignment. Very often, it has been carried out unlawfully, and the claim against you is invalid.

+38 095 554-54-24 — legal advice

How this works legally

Assignment of a claim (cession) — the replacement of the creditor in an obligation (Articles 512–519 of the Civil Code).

Key rules:

• the debtor’s consent is not required — but they must be notified of the assignment;
• the new creditor assumes the scope of rights of the original creditor: no more than what existed previously. If part of the debt was overdue or unlawfully charged, it remains so;
• the debtor is entitled to raise against the new creditor all the defences that they had against the original creditor: limitation period, invalidity of the contract, partial repayment, set-off;
• the form of the assignment agreement must correspond to the form of the principal obligation: if the principal contract is notarised, then the assignment must also be notarised.

A breach of any of these rules constitutes grounds for challenging the claim.

If you are buying a debt: what to check

Does the debt actually exist? Original documents: contract, delivery notes, statements, calculations. Without them, the claim cannot be substantiated in court.

Limitation period. Three years for the principal debt, one year for interest. It will not be possible to recover an overdue claim if the debtor invokes the limitation period — and they will. Please note separately: the running of the limitation period, which was suspended during the quarantine and martial law, resumed on 4 September 2025.

Whether the contract from which the debt arose is uncontested, and whether the debtor has any counter-claims.

Is there anything from which to recover the debt? This is the key point. We check: property, vehicles, bank accounts, shares in companies, enforcement proceedings, and signs of insolvency. A debt owed by a solvent debtor is valuable; a debt owed by an ‘empty’ debtor is worth nothing.

Have there been any previous attempts at recovery — court judgments, closed enforcement proceedings with a certificate of no assets.

The real price. It is determined not by the size of the debt, but by the likelihood of recovery, multiplied by the timeframe.

If your debt has been sold: what to check

Were you notified of the assignment? If not, you have the right to fulfil your obligation to the original creditor, and this will constitute proper performance. The new creditor will not be able to demand that you pay again.

Does this person have the right to purchase debts? The acquisition of a claim for monetary obligations is a financial service — and the person providing it must comply with the requirements of the law. Any breach here is grounds for challenging the debt assignment agreement.

What exactly has been purchased? Debt collectors often demand a sum significantly higher than the amount they actually purchased and to which they are entitled.

Has the limitation period expired? The purchase of the debt does not restart it. The debt collector will not be able to recover an overdue claim if you invoke the limitation period in court. However, they will not remind you of this themselves.

Are the charges lawful — late payment penalties, fees, and interest after the contract has expired.

Collection methods. Threats, calls to relatives and at work, and disclosure of information about the debt to third parties are unlawful. This is documented and becomes grounds for a complaint and a bargaining chip in negotiations.

The main trap for the debtor

Never admit to a debt without verifying it first.

Partial payment or signing any document acknowledging the debt resets the limitation period — the clock starts ticking again. A debt that a debt collector would never have recovered in court becomes fully recoverable following a single ‘symbolic’ payment of 100 UAH, made ‘just to get them off your back’.

This is precisely what most of these calls are designed to achieve.

When you don’t need a solicitor

You are buying a debt from a solvent company with proper documentation, a recent debt confirmed by a court judgement — the risks are minimal.

You need a solicitor when:

• you are buying a debt portfolio or a large claim;
• you are offered the chance to buy a debt at a discount — and you need to understand why the discount is so large;
• your debt has been sold to debt collectors;
• debt collectors are putting pressure on you using unlawful methods;
• the amount of the claim does not match what you remember;
• the debt is old, and you do not know whether it can still be recovered.

How we work

1. We verify the existence of the debt — source documents, calculations, grounds.
2. We calculate the limitation period — for each component separately.
3. We assess the debtor’s solvency — whether there are sufficient assets from which to recover the debt.
4. We draft or review the assignment agreement — to ensure it cannot be contested.
5. We recover the debt — from the initial claim through to enforcement proceedings.
6. We defend the debtor — we challenge unlawful assignments, raise the defence of limitation, and remove unlawful charges.

Cost of services

Full price list · Debt recovery

Questions and answers (Debt purchase)

Is the debtor’s consent required to sell their debt?

No, consent is not required. However, the debtor must be notified of the assignment — otherwise, they have the right to pay the original creditor.

Is the limitation period reset after the debt is purchased?

No. The new creditor acquires exactly the same rights as the original creditor, including the expired limitation period. It will not be possible to recover an overdue claim if the debtor invokes the limitation period.

Debt collectors are demanding more than I owe. Is this legal?

Check carefully. Often, the claim includes unlawfully charged late payment penalties, fees and interest accrued after the contract’s expiry date. And it is often higher than the amount the debt collector actually purchased the debt for.

I wasn’t notified that the debt had been sold. What does this mean?

It means you have the right to fulfil your obligation to the original creditor, and this will constitute proper fulfilment. The new creditor cannot demand payment again.

Can the assignment agreement be challenged?

Yes — on the grounds of a breach of form, the new creditor’s failure to meet the requirements for financial service providers, or other breaches. This is a valid and workable basis for challenge.

Is it worth paying the debt collector ‘even a little, just to get them off my back’?

Absolutely not, until the debt has been verified. A partial payment interrupts the limitation period — and a debt that could never have been recovered in court becomes fully recoverable.

How much is a debt worth when purchased?

It is worth as much as the probability of its recovery. A debt owed by a solvent debtor is expensive; a debt owed by someone with no assets is practically worthless.

What should you check before buying a debt?

The existence of the debt (original documents), the limitation period, the absence of disputes regarding the contract and, most importantly, whether the debtor has assets from which the debt can be recovered.

What documents should you bring to a consultation?

The assignment agreement (if available), the debt collector’s demand letter, the original contract, a statement of the debt, and evidence of partial payments.

Contacting a solicitor regarding the purchase of debts from the company ‘Svarog’

If you are buying a debt — send us the documents, and we will check whether it is legally valid and whether there is anyone from whom to recover the debt. If you have sold your debt — send us the debt collector’s claim, and we will check the legality of the assignment and the amount of charges. And most importantly: do not pay anything until the debt has been verified.

+38 095 554-54-24 · Kyiv, 7 Khoriva Street (Podil) · Mon–Fri 9.00–18.00