Claim-splitting in debt recovery

Until 2017, many companies could split their claims into multiple claims, i.e. the claim-splitting, to check their positions in court. This helped the Company to learn the court’s position, save the state fees and create a pre-trial for the further debt recovery.

For example, the total debt is 10 million tenge. The Company could firstly file claim for 1 million tenge, with state fee of 30 thousand tenge. In case the Company wins the court case, the Company could further file claim for the remaining amount of 9 million tenge.

RESTRICTIONS ON CLAIM-SPLITTING

Since 2017, our court practice shows that the courts deny the plaintiffs in the second claim, when the plaintiff tries to recover the remaining amount.

The courts explain this restriction as follows:

• Plaintiffs could recover the full debt amount in the 1st claim;

• When splitting the claim, the subject and the basis of claim did not change, therefore, the Plaintiffs lost their right to file the 2nd claim.

SYNERGY PARTNERS SOLUTION

Our lawyers try to avoid such restriction and offer the option of"replacing the plaintiff" when splitting the claim. For this, the Company could assign part of the debt to another company or individual (hereinafter - the First Company) under assignment deed, for example, assign 10% of the debt.

In case the First Company wins the court case, the Company could file a claim for the remaining 90% of debt and recover such debt without obstacles.