Collecting a debt from a Serbian company: a checklist for the creditor's team

Step 1: check the deadline

Under Article 374 of the Law on Obligations (Zakon o obligacionim odnosima), claims between legal entities from contracts for the sale of goods and services generally become time-barred after three years. The period usually runs from the due date of each invoice. Older invoices in a long account may therefore be close to the limit even when recent ones are not.

Limitation is interrupted by a lawsuit, a motion for enforcement or a written acknowledgment of the debt by the debtor. Reminders and emails alone do not interrupt it. List all invoices with their due dates, so that the oldest ones can be dealt with first.

Step 2: what to send us

A complete file saves time and avoids a second request. Scans are enough at the start. If a court later asks for originals or certified copies, we tell you which ones.

• The contract, framework agreement, order or offer accepted by the debtor
• All unpaid invoices and a statement of account
• Proof of delivery or of services performed, such as CMR, delivery notes or signed acceptance
• Correspondence in which the debtor confirms or disputes the debt
• Any security, such as bills of exchange, guarantees or pledges
• Your company's registry extract and the name of the person who will sign the power of attorney

Step 3: check the debtor in public registers

Serbian public registers give a good first picture of the debtor, and much of it is free to search online. We run these checks at the start of every case. Your team can also run some of them before extending further credit.

A blocked account does not mean the debt cannot be collected. The debtor may still own real estate, vehicles or claims against its own customers. It does mean that a quick payment from the bank account is unlikely.

• Business Registers Agency (APR): status, registered address, directors, owners and any liquidation or bankruptcy
• APR register of financial statements: revenue, assets and debts for previous years
• National Bank of Serbia: whether the debtor's accounts are blocked and for how long
• APR pledge register: pledges over the debtor's movable assets
• Real estate cadastre: property registered in the debtor's name
• Court and enforcement records: other cases against the debtor

Step 4: choose the route

The first step is usually a formal demand letter from a Serbian attorney, with a clear deadline. If the debtor proposes a payment plan, it should be in writing and signed, because a signed plan acknowledges the debt.

If there is no payment, a motion for enforcement can be filed directly on an invoice or another authentic document. Disputes between companies are handled by the commercial courts. The debtor can file an objection within 8 days of service of the writ of execution. If the objection is well founded, the case continues as a lawsuit. If there is no suitable document or the debt is disputed, we file a lawsuit.

Default interest runs from the due date at the rate set by the Law on Default Interest (Zakon o zateznoj kamati). It is claimed together with the principal.

Step 5: if the debtor is in bankruptcy

Once bankruptcy proceedings are opened, individual enforcement stops. The creditor must file its claim with the bankruptcy court within the deadline stated in the published notice. A claim filed late can be lost, so the APR status and published notices should be watched while a case is running.

Secured creditors, such as holders of a registered pledge or mortgage, have a separate position in bankruptcy. This is one reason to record any security you hold at the start of the case.

Working with us from abroad

A foreign creditor acts through a power of attorney and does not need to travel to Serbia. The power of attorney is usually signed before a notary and apostilled. We report on each step in English and tell you in advance when a decision is needed from your side, such as whether to accept a payment plan or start a lawsuit.

Fees follow the Attorney Tariff and are set out in a written offer before work starts. Whether and how much is collected depends on the debtor's assets and the court, so we give a realistic assessment after the register checks.

Frequently asked questions