Debt collection & enforcement

Minister of Justice Edvards Smiltēns, at a meeting with the management of the Riga City Court, discussed reducing the courts' workload: standardised, technical and uncontested cases are planned to be examined in written or automated proceedings while retaining human oversight, letting judges focus on contested cases. The Riga City Court employs 100 judges and receives around 10,000 civil cases a year, more than 2,000 criminal cases, around 1,300 administrative offence cases and more than 125,000 uncontested civil and Land Register cases. The misuse of AI to draft needlessly complex procedural documents was also discussed.

On 2 September 2026 the Constitutional Court began examining case No. 2025-23-01 on the compliance of Section 4(1)(2) and (5) and Section 5(1)(2) and (2) of the Law on the Release of Natural Persons from Debt Obligations with Articles 1 and 105 of the Constitution (Satversme). The application was filed by a licensed debt collection service provider that purchases and recovers debts out of court; it considers that the provisions excessively widen the circle of persons eligible for release and substantially reduce the value of its debt portfolio, infringing property rights and the principle of legitimate expectations. The case is being examined in written proceedings; a ruling must be adopted within 30 days after the court hearing.

On 2 September the Ministry of Justice held a discussion, "Investment Environment and Legal Protection in Latvia", on protracted civil and commercial cases that freeze company assets and hit small and medium-sized enterprises particularly hard in debt recovery. Proposed solutions: simplify civil procedure rules, strengthen judges' economic competence, improve the case preparation stage, limit repeated adjournments of hearings, improve enforcement of judgments and simplify recovery of uncontested claims, as well as widen the jurisdiction of the Economic Affairs Court and introduce commercial-case specialisation at the appellate level. Representatives of the courts, the prosecutor's office, business and the financial sector took part.

The Constitutional Court has begun assessing whether the provisions of the Law on the Release of Natural Persons from Debt Obligations, which allow a person to be released from part of their obligations if their income and debts do not exceed the statutory thresholds and the person meets the social criteria, comply with the Constitution. The application was filed by debt collection service providers that purchase and recover debts out of court; they argue that the amendments in force since 21 January 2025 substantially widened the circle of persons eligible for release and reduced the value of debt portfolios purchased at market price, infringing property rights and legitimate expectations. The case is being examined in written proceedings, with a ruling due within 30 days after the hearing.

A Russian-language article on the case opened at the Constitutional Court concerning provisions of the Law on the Release of Natural Persons from Debt Obligations which, after the amendments of 21 January 2025, allow a wider circle of persons to be released from obligations if their income and debts do not exceed the statutory thresholds and the person meets the social criteria. The application was filed by debt collection companies that purchased the debts at market price, arguing that the provisions substantially reduce the value of their portfolios and violate property rights and the principle of legitimate expectations. A ruling is due within 30 days after the court hearing.

The Constitutional Court has initiated a case on the compliance with the Constitution of provisions of the Law on the Release of Natural Persons from Debt Obligations – provisions allowing a person to be released from debts if their income and the amount of their obligations are below the statutory thresholds and the social criteria are met. The application was filed by a licensed debt collection company, which argues that widening the circle of eligible persons has substantially reduced the value of its portfolio of claims purchased at market price, violating property rights and the principle of legitimate expectations.

The courts portal explains that since 1 July 2026, in cases under the warning procedure for compulsory enforcement of obligations (SPIBK), court notices are generated and sent automatically, so they may arrive in the official e-address on Saturdays, Sundays and public holidays. If the debtor submits a reply via the e-case portal, the court ruling may be prepared and sent the same day; if no reply is received within 50 days, the system automatically generates a ruling, even if the deadline falls on a day off. The court urges people not to ignore notices received on days off and to check them on the Latvija.gov.lv portal.

Minister of Justice Edvards Smiltēns convened a discussion, "Investment Environment and Legal Protection in Latvia", at which businesses and financial institutions noted that lengthy civil and commercial litigation freezes assets, increases credit risk and extends debt recovery periods for SMEs. The Ministry plans to reform civil procedure rules for faster dispute resolution, curb procedural delays (repeated adjournments of hearings, late submission of evidence), improve enforcement of judgments and strengthen judges' specialisation in commercial cases, including through Judicial Academy training. Achievements already cited include the creation of the Economic Affairs Court, the arbitration reform, the revision of state fees in civil cases and improvements to the insolvency system.

On 2 September 2026, at the Ministry of Justice's discussion on the investment environment and legal protection, Andris Spore, Chairman of the Council of Sworn Bailiffs of Latvia (LZTI), stressed that it is not enough for a business to obtain a favourable judgment after several years if its enforcement drags on. The problems named were protracted recovery after judgment, abuse of procedural rights to delay enforcement and shortcomings in the mechanisms for realising security; he proposed simplifying and speeding up the enforcement of uncontested obligations and reforming not only litigation but also the enforcement of rulings.

The Council of Sworn Bailiffs of Latvia (LZTI) announces that official certificate No. 57 of sworn bailiff Gunita Špēle of Riga Regional Court district No. 73 and assistant's certificate No. 30 of her assistant Maija Celma have been declared invalid. The certificates were annulled in accordance with the Cabinet of Ministers regulations on the types of certificates and the procedure for their use.

The Council of Sworn Bailiffs of Latvia (LZTI) informs that sworn bailiff Gunita Špēle ceased performing her duties in Riga Regional Court district No. 73 on 31 August 2026; the district's case files are taken over by sworn bailiff Nataļja Bekasova (previously district No. 67). All amounts payable to district No. 73 are henceforth to be transferred to Treasury account LV34TREL919905400200B; parties to enforcement cases should contact N. Bekasova in Riga.

The consultation explains that a debtor in collection proceedings can dispute the creditor's claimed amount by submitting evidence such as payment proof. Courts weigh evidence at their own discretion, and only the amount set in the judgment can be collected; debtors may also request deferral or installment payment under Civil Procedure Law Article 206.

State Revenue Service data show Latvia's total tax arrears fell to €815.593 million as of 1 August 2026, down 1% from July. State budget debts stood at €339.521 million, municipal debts at €298.4 million, and social insurance debts at €177.672 million; €224.797 million of the total is suspended debt from insolvent companies, while €85.203 million has extended payment terms.

On August 21 the Saeima backed, in its second reading, amendments to the Civil Procedure Law that streamline judgment enforcement. Where a company's reorganisation is already registered in the Enterprise Register, bailiffs will no longer need extra steps to continue a case, and notices to parties whose address is unknown may be published in the official gazette "Latvijas Vēstnesis". The amendments also bring the Bank of Latvia into handling consumer collective complaints alongside the PTAC consumer rights body; the changes are due to take effect on 1 January 2027.