3 Realms of Debt Collection in Serbia + Bonus Point on Debt Collection Agencies in Serbia

Debt collection can be a challenging process, especially for creditors who are dealing with delinquent debtors. In Serbia, creditors have several debt collection options available to them, ranging from informal negotiations to formal legal proceedings. In this article, we will explore the debt collection options available to creditors in Serbia and the advantages and disadvantages of each approach.

Informal Debt Collection

The first option available to creditors is informal debt collection, which involves contacting the debtor directly to try to negotiate a repayment plan. This can be an effective approach for small debts or for debtors who are willing to cooperate with the creditor.

Informal debt collection typically involves sending a demand letter to the debtor, outlining the amount owed, the due date, and the consequences of non-payment. The letter may also include a proposal for a repayment plan, which the debtor can accept or reject.

Advantages of informal debt collection include the lower costs and the potential for a faster resolution. However, this approach may not be effective for larger debts or for debtors who are unresponsive or uncooperative.


Mediation is a voluntary process in which a neutral third party helps the creditor and debtor to negotiate a settlement. In Serbia, mediation is regulated by the Law on Mediation, which provides a framework for the mediation process and establishes the qualifications and responsibilities of mediators.

Mediation can be an effective approach for resolving disputes between creditors and debtors, as it allows both parties to participate in the negotiation process and reach a mutually acceptable settlement.

Advantages of mediation include the potential for a faster resolution and lower costs compared to formal legal proceedings. Mediation also allows both parties to maintain control over the outcome of the dispute, rather than leaving the decision in the hands of a judge.

However, mediation may not be effective if the debtor is unresponsive or uncooperative, or if there is a significant power imbalance between the parties.

Legal Proceedings

If informal debt collection and mediation are not effective, creditors may choose to pursue legal proceedings to recover their debt. In Serbia, legal proceedings for debt collection are governed by the Law on Enforcement and Security, which provides a framework for the enforcement of court judgments.

The legal proceedings typically begin with the creditor filing a lawsuit against the debtor, requesting that the court order the debtor to repay the debt. If the court rules in favor of the creditor, a judgment is issued, and the creditor can then begin the enforcement process to recover the debt.

Advantages of legal proceedings include the potential for a court order to enforce the repayment of the debt and the ability to seize assets to satisfy the debt. Legal proceedings also provide a clear legal framework for the resolution of disputes, which can help to prevent further conflicts between the parties.

However, legal proceedings can be time-consuming and expensive, and there is no guarantee that the creditor will be able to recover the full amount owed.

Debt Collection Agencies*

Another option available to creditors is to engage the services of a debt collection agency. Debt collection agencies specialize in recovering debts on behalf of creditors, and they have experience and expertise in negotiating with debtors and enforcing debt collection.

In Serbia, debt collection agencies are regulated by the Law on Collection of Claims, which establishes the requirements for the operation of debt collection agencies and provides a framework for debt collection practices.

Advantages of debt collection agencies include their expertise in debt collection and their ability to negotiate on behalf of the creditor. Debt collection agencies also have access to specialized tools and techniques for locating and contacting debtors, which can improve the chances of recovery.

However, debt collection agencies typically charge a commission or fee for their services, which can reduce the amount of the debt that the creditor is able to recover.


Debt collection can be a complex and challenging process, but creditors in Serbia have several options available to them for recovering their debts.

Informal debt collection, mediation, legal proceedings, and debt collection agencies each have their own advantages and disadvantages, and creditors should carefully consider which approach is best suited to their particular situation.

PS. It is important for creditors to be aware of their rights and obligations under Serbian law when pursuing debt collection, and to seek expert legal and financial advice where necessary. With the right guidance and support, creditors can navigate the debt collection process and recover their debts in a timely and efficient manner.

*Debt collection agencies in Serbia are regulated by the Law on Collection of Claims (‘Zakon o izvršenju i obezbeđenju‘). This law provides a framework for debt collection practices, establishes the requirements for the operation of debt collection agencies, and outlines the rights and obligations of debt collectors.

Under this law, debt collection agencies must be registered with the Serbian Business Registers Agency and must obtain a license from the Ministry of Justice in order to operate. The license is issued for a period of five years and can be revoked if the agency violates any of the requirements of the law.

The law also sets out specific requirements for debt collection practices, such as restrictions on the methods that can be used to contact debtors and requirements for the content of collection letters. Debt collectors are required to follow these rules, and failure to do so can result in fines or other penalties.

In addition to the Law on Collection of Claims, debt collection agencies in Serbia may also be subject to other laws and regulations, such as consumer protection laws and data protection laws.

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