Debt collection in Estonia is regulated under the Law of Obligations Act, which outlines the rights and responsibilities of both creditors and debtors. Creditors typically initiate the debt collection process by sending a payment reminder, and if the debt remains unpaid, they may take legal action. Debtors have the right to dispute the debt and seek clarification regarding the claim. The legal framework aims to balance the interests of creditors and protect the rights of consumers while promoting responsible lending and borrowing practices.

Legal actions can be initiated through the local courts, which handle various civil cases, including those related to unpaid debts. The process typically starts with the plaintiff filing a claim in the relevant court, where they must provide evidence of the debt, such as contracts or invoices. If the court rules in favor of the creditor, it can issue an enforcement order that allows for the collection of the debt through various means. Estonia also has a simplified procedure for small claims, making it easier for creditors to reclaim amounts under a certain threshold without extensive legal representation.

How quickly will the court resolve the matter?

The court must resolve matters in reasonable time. The speed of resolution of specific matters depends on their content, the parties to the proceedings, the requests made during the proceedings, any situations that may emerge, the number of court instances passed and other factors. The court may resolve a case in a session or in a written procedure. The law also establishes some specific deadlines. For example, the shortest deadline that may be given to the defendant for responding to an action in civil proceedings is 14 days (the deadline may be shorter in simplified proceedings) and there must be at least 10 days before the delivery of summons and the date of the session.

Do I need a lawyer when I initiate legal proceedings?

A professional legal adviser is not mandatory in courts of the first and second instances, but a representative can help people without a legal education in the case of more complicated procedures. If you use a legal adviser when you initiate legal proceedings, the representative has the right to perform all procedural acts on your behalf. You may be represented by a lawyer, a person with a law degree or another person specified in procedural law. You must have a representative with a law degree when you turn to the Supreme Court.

In which language can documents be submitted?

All documents must be submitted to the court either in Estonian or as translations into Estonian.

Expenses in civil and administrative matters

Legal proceedings are sometimes expensive. The procedural expenses in civil and administrative matters are the state fee and bail, the costs related to proof (e.g. the costs of summoning witnesses, costs of expert analyses) as well as the expenses of the parties to the proceedings and their representatives (e.g. legal expenses, transport, etc.). Procedural expenses must be paid during the proceedings by the party to the proceedings who requests the procedural act with which the costs are associated. Thus, the plaintiff or the applicant must pay the state fee when filing an action or complaint, the costs of witnesses or expert analyses must be paid in advance by the party that requests the summoning of a witness or the appointment of an expert, and each party must pay their representatives.

After the end of the judicial proceedings, the party who lost the case is usually required to compensate the expenses incurred by the counterparty (and any third party that participated on the opposing side) during the proceedings. In a civil matter, the dismissal of the action usually means that the plaintiff must compensate the defendant for the costs incurred in relation to the judicial proceedings, but if the action is granted, the defendant is required to pay the plaintiff’s costs.

The information was compiled using public material from the page: https://www.kohus.ee

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