Five expense categories most lenders miss—and how to calculate them correctly
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You recovered the principal debt, but spent three times more on the process than you planned. Did you know that most of these costs could have been recovered from the debtor?
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Did you know that legal fees for debt collection in Latvia can be recovered from the losing party—but only if they are documented?
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Which expenses are automatically recovered by law, and which must be specifically declared in the statement of claim?
The company recovered a debt of €15,000. The process took three months. Court fees were €800. Lawyer fees were €1,200. Document translations were €300. Bailiff fees were €400. Total additional expenses were €2,700.
Of this amount, the creditor collected 600 euros from the debtor—only part of the court fee. The rest remained in his account because he was unaware that he could demand more.
Category One: Court Fee or Arbitration Fee
These are the costs of filing a claim. In arbitration court, there is an arbitration fee. In state court, there is a state duty (since April 2025, 15% of the claim amount for property claims; the maximum has been revised).
How it’s collected: Automatically—the court fee is collected from the losing party in proportion to the claims satisfied. If the claim is 100% satisfied, the defendant reimburses 100% of the fee. If 70% is satisfied, the defendant reimburses 70%.
Category two: legal representation costs
Legal fees are collected from the losing party, but not automatically and not in full.
How to recover: State the amount in the lawsuit or during the trial, attaching the lawyer’s contract and payment documents. The court will assess the reasonableness of the amount; if the fee is clearly excessive, the court may reduce the amount to a reasonable amount.
Experience shows that Latvian courts award legal representation fees in the range of €300-€1,500 for simple cases and higher for more complex ones. Keep all payment records.
Category three: statutory interest for the period of delay
This is not an additional expense - it is what the debtor owes you for using your money during the period when he did not pay.
For commercial transactions, the ECB rate plus 8% per annum applies. If the contract stipulates a contractual penalty, it may be applied instead of or in addition to the statutory interest, depending on the terms of the contract.
How to file: In your claim, specify the interest calculation as from the date of default to the date the claim is filed plus “until the date of actual performance.” The second option means that interest continues to accrue even after the decision is received until the debt is actually repaid.
Category four: costs of enforcement of the decision
The bailiff’s fees are collected from the debtor. However, they are initially advanced by the creditor, and then the bailiff collects them from the debtor through enforcement proceedings.
If the debtor becomes insolvent and has no assets, part of the creditor’s advance remains unpaid. This must be taken into account when assessing the feasibility of collection.
Category Five: Losses
If the breach of contract caused you actual losses in excess of the amount owed, you have the right to recover them. However, this is the most difficult category: the losses must be documented.
Direct losses are expenses that arose directly from the breach: the cost of urgently replacing a supplier, the cost of storing goods due to late payment, penalties paid to your customers due to your contractor’s breach.
Lost profits are the income you could have received had your partner not breached the contract. Courts are cautious in awarding lost profits—convincing evidence is required.
How to calculate and declare correctly
In your statement of claim, list each category of claim separately, with calculations. For example: “Principal debt: €15,000. Statutory interest from 01.02.2025 to 28.05.2026: €1,560. Contractual penalty: €2,700. Legal representation costs: €1,200. Arbitration fee: €800. Total: €21,260.”
Please attach supporting documents for each expense item.
Three steps to take now
First, review your current claims or complaints—are all expense categories claimed?
Second: keep all payment documents for expenses related to collection—the contract with the lawyer, receipts, payment orders. Without documents, collection is impossible.
Third: When preparing your next claim, use a full calculation—principal debt + interest + penalties + expenses. This is a legal right, not an act of aggression.
A creditor who collects only the principal debt leaves the debtor with unpaid credit during the process. Collect everything you are legally owed.
This article is for informational purposes only and does not constitute legal advice.