Debt recovery is one of the most common legal challenges faced by businesses operating in Mongolia. Whether you are dealing with a commercial dispute, unpaid invoices, or defaulted loans, Mongolian law provides several mechanisms to recover outstanding amounts.
Pre-Litigation Options
Before initiating court proceedings, creditors should first issue a formal demand letter specifying the amount owed, the basis for the claim, and a deadline for payment. If the debtor responds, negotiation or mediation may resolve the matter more efficiently than litigation.
Court Proceedings
If pre-litigation efforts fail, a civil claim may be filed with the competent Mongolian court. The statute of limitations for most civil claims is 3 years. Courts may also issue interim measures, such as freezing the debtor's assets, to protect the creditor's position during proceedings.
Enforcement of Judgments
Once a court judgment is obtained, enforcement is carried out by the General Executive Agency of Court Decision. Enforcement mechanisms include wage garnishment, bank account seizure, and asset auction. Alison & Kate Partners assists clients throughout each stage of the debt recovery process.