How To Ensure Creditor Protection In Cyprus

This article outlines the many ways in which under Cypriot law businesses can protect their interests in their commercial dealings.

Any creditor needs to ensure that he will receive payment for the sale of his goods or services, or that his loan will be repaid.

The creditor often relies on the right to bring legal proceedings:

1. which will result in a judgment debt that can ultimately be enforced by seizing and, if necessary, selling, any of the debtor's assets that the creditor can lay his hands on; and/or
2. for bankruptcy (if an individual) or a petition for a winding-up (if a company); failure to pay a debt after due demand is an act of bankruptcy or a ground for winding up. But, if the reason for such non-payment is a genuine dispute over the amount of the debt, or if there is counter-claim of some sort, eg a breach of contract on the part of the creditor, the debtor may successfully resist the proceedings/petition, and the court may regard such