Debt collection in Estonia

Erovik Law Office handles debt collection Estonia-wide for foreign and Estonian creditors whose debtor is an Estonian company or individual. We work under Estonian law, in Estonian and English, from the first demand letter to a court decision and enforcement by a bailiff.

What is different in Estonia? The system is fast and largely digital. An undisputed claim of up to EUR 8,000 can go through an electronic payment order procedure, and bailiffs arrest bank accounts electronically. But the courts work in Estonian, deadlines are short and not all costs are recoverable.

Who this service is for

• Foreign suppliers, service providers and lenders with an unpaid invoice or loan from an Estonian customer.
• Estonian companies and private individuals with a money claim against an Estonian debtor.
• Anyone who has received a demand letter or a court payment proposal they consider unjustified.

We work directly with you as the client, not through collection agencies or other intermediaries. We advise only on Estonian law.

Typical situations

• Invoices for goods, services or subcontracting work that remain unpaid after reminders.
• Unpaid loans between companies or private persons.
• A debtor that has stopped answering, changed its management board or may be insolvent.
• A disputed amount, for example where the customer claims the work was defective.

How debt collection works in Estonia

1. Assessing the claim, the evidence and the time limit

We review your documents and check the debtor in the e-Business Register. Under the General Part of the Civil Code Act (TsÜS), a contractual claim is generally time-barred after three years (TsÜS § 146). For an agreed price or fee, the three years run from the end of the calendar year in which payment fell due (TsÜS § 147). A part payment or other acknowledgement by the debtor restarts the period (TsÜS § 158).

2. Demand letter

The letter states the amount, the legal basis and a short deadline. Under the Law of Obligations Act (VÕS), late payment interest (viivis) runs from the due date until payment. The statutory rate is the European Central Bank’s main refinancing rate, fixed for each half-year, plus 8% per year. If the contract sets a higher interest rate, that rate applies instead (VÕS §§ 94 and 113). From a business debtor you can also claim a fixed EUR 40 for collection costs (VÕS § 113¹).

A demand also protects you on costs. If you sue without one and the debtor accepts the claim at once, you may have to bear the costs yourself (Code of Civil Procedure (TsMS) § 168).

3. Payment order procedure (maksekäsu kiirmenetlus)

For a contractual money claim that is already due and unlikely to be disputed, the quickest route is the payment order procedure. The total, including interest and other ancillary claims, may not exceed EUR 8,000, and ancillary claims count only up to the amount of the main claim (TsMS § 481).

The application is filed electronically with a digital signature (TsMS § 482). Estonian payment order cases are handled by the Haapsalu courthouse of Pärnu County Court (TsMS § 108). The court deals with the application within ten working days and sends the debtor a payment proposal (TsMS §§ 483–484). The debtor then has 15 days, or 30 days if served abroad, to pay or to object, and does not need to give reasons (TsMS § 485). If the debtor does neither, the court issues a payment order, which is immediately enforceable (TsMS § 489).

Cost recovery is limited to the state fee and EUR 20 towards your other costs (TsMS § 484²). If the debtor objects, the case becomes an ordinary court case unless you asked for the proceedings to end. You may then be given 14 days to file a full statement of claim (TsMS §§ 486–487).

4. Statement of claim

Larger, disputed or otherwise unsuitable claims go to the county court (maakohus) as a statement of claim (hagi). If the debtor may move its assets, the court can secure the claim, for example by arresting property or bank accounts (TsMS §§ 377–378). See our litigation page for the procedure and the cost risk.

5. Enforcement by a bailiff (kohtutäitur)

A final or immediately enforceable court decision, including a payment order, is an enforcement title under the Code of Enforcement Procedure (TMS § 2). You submit it with an enforcement application to a bailiff whose area covers the debtor’s seat, residence or assets (TMS § 4). The title may be in Estonian or English (TMS § 23).

The debtor first gets time to pay voluntarily, as a rule at least 30 days; if the debt is paid within that time, the bailiff’s fee is reduced (TMS § 25). The bailiff can request bank and register data and arrest bank accounts (TMS §§ 26 and 115), and may ask you for an advance payment (TMS § 40). Enforcement is the bailiff’s job (TMS § 3); a collection agency has no such powers.

6. If the debtor is insolvent

Under the Bankruptcy Act (PankrS), a creditor can file a bankruptcy petition, for example where the debtor has not paid within 30 days of the due date and then still does not pay within 10 days of a written bankruptcy warning (PankrS § 10). The court may ask you for a deposit towards the interim trustee’s costs (PankrS § 11).

Once bankruptcy is declared, interest stops running (PankrS § 35). You must then file your claim with the trustee within two months of the bankruptcy notice in the official gazette Ametlikud Teadaanded (PankrS § 93).

If the claim is made against you

Never ignore a payment proposal from an Estonian court. You can object within 15 days, or 30 days if served abroad, without giving reasons (TsMS § 485). Once a payment order has been made, it can be challenged only on limited grounds (TsMS § 489¹). If a claim is old, raise limitation yourself: the court will not consider it otherwise (TsÜS § 143).

What we do and what it costs

• Initial written legal analysis and action plan: EUR 120–180.
• Demand letter, or reply to a demand letter: EUR 120–200.
• Statement of claim: from EUR 300.
• Payment order applications, bankruptcy petitions, other court documents and representation: by agreement.
• Hourly rate: EUR 60–80.

You can order a single document or one stage without full representation. Prices are final and no VAT is added. State fees, bailiff fees, expert opinions, translations, notary fees and other third-party costs are not included. International matters may receive a separate quote. New clients normally prepay 50–100%, or the first agreed stage. Recovering legal costs from the debtor may be possible under the law but cannot be guaranteed. See all our fees.

Related pages

• How to collect a debt from an Estonian company
• Court disputes in Estonia
• Closing an Estonian company
• Bailiffs and enforcement in Estonia

Send us your claim

E-mail info@erovik.ee with the debtor’s name and registry code, the amount, the main documents and any deadline you know of. You can look up the debtor yourself in the e-Business Register. We usually reply within one working day and confirm the scope and price before any work starts. Contact us.