Collection is the penalty procedure of payables. Officially, the problem of debt recovery appeared in the world relatively recently, in the 60s of the last century, in the United States, namely, there was born the term "collector" itself, which derives from the English word "collection" - picking. Collection of funds and their return to the economy with the help of collectors is a normal international practice, which is a part of the financial system of the economies of different countries.
Penalty (return) of a debt is a recovery procedure of payables, which includes: pre-judicial, non-judicial and judicial stages.
Pre-trial stage of the debt collection:
- Soft-collection – a remote work with the client
- Hard-collection – a direct contact with the client
Trial stage of the debt collection:
- Legal-collection is the third and final stage of work with a debtor, which is taken by the creditor within the framework of the legal or enforcement proceedings.
Extrajudicial debt collection:
- Article 37 of the Law of Ukraine On Mortgage includes the state registration of ownership of the mortgagee in concern of the real property and obtaining its title documents.
- Article 38 of the Law of Ukraine On Mortgage considers the sale of the mortgaged property.