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In Serbia, laws surrounding debt and collection are governed by the Obligations Act, which applies to the relationship between debtors and creditors. These laws are oriented towards protecting the rights of both parties involved in the transaction. The rights and obligations of financial organizations or agencies involved in the debt collection process are also regulated by several other laws such as the Law on Banks and the Law on Financial Leasing.
You might find the need for a lawyer if you are unable to pay your debts or if you’re being unfairly or unlawfully treated by a creditor or debt collector. Furthermore, if your debts are more complex involving multiple bankruptcies, secured loans, or extensive amounts of credit card debt, it's advisable to consult a lawyer. Lastly, attorneys can also help you understand your rights and provide legal advice if the debt collection agency sues you or if you wish to negotiate or dispute a debt.
The Obligation Act stipulates that a creditor may initiate litigation if a debtor fails to fulfill their financial obligations. However, before this, the creditor needs to provide a formal notice to the debtor about the overdue payment. Under the existing Law on Enforcement and Security, a debtor's assets can be frozen or seized for repayment. There are limitations and exceptions in place to protect certain personal belongings and income from being collected.
Defaulting on a loan can lead to dire consequences such as asset confiscation, wage garnishment, and a negative impact on your credit score. Creditors can take legal actions to recover their debt.
The typical statute of limitations for debt in Serbia is 10 years from the date the debt became due. After this period, the debt cannot be legally pursued.
No, a debt collector cannot contact you at unreasonable times and places such as before 8 a.m. or after 9 p.m. unless you explicitly agree to it.
Yes, it's possible to negotiate the terms of your debt with your creditor or a collection agency. You should seek legal advice if you wish to do this.
You have the right to fair treatment, privacy protection, and accurate information from debt collectors. They are not allowed to use practices that violate dignity, personal rights, and other rights protected by law.
Some notable resources include the National Bank of Serbia and the Ministry of economic affairs websites, both of which have sections dedicated to debt regulations. Various NGOs provide free advice and counselling for those struggling with debt. Legal aid offices can also offer assistance in such matters.
If you need legal assistance, start by reaching out to a legal practitioner specializing in debt and collection law. They can provide you with guidance tailored to your specific situation. You can also explore free legal aid programs or organizations offering assistance with debt-related issues.
