Assignment of Claim in Lithuania

Transfer of Claim Rights

Assignment of a claim (cession) refers to the transfer by the original creditor (assignor) of an existing or future claim (in whole or in part) to a new creditor (assignee). As a result of the transfer, the creditor changes, but the debtor remains the same. In the Republic of Lithuania, the creditor has the right to assign the claim (or part of it) to another person without the debtor’s consent, provided this does not contradict the law or the contract, or the claim is not personally linked to the creditor.

Conditions for assignment of claims (in Lithuania):

1. Contract between the original and new creditor. Lack of notification to the debtor or their objection does not invalidate the agreement, except where assignment without the debtor’s consent is prohibited—e.g., when the creditor’s identity is crucial to the debtor (such as if performance would be significantly harder with another creditor).
2. Form of the assignment contract must match the form of the principal obligation:
   • If the main obligation required a written form, the assignment must also be in writing (it may also be notarized).
   • If the original contract required legal registration (e.g., in a Lithuanian public registry), the assignment agreement must also be registered.
3. Permissibility of claim assignment: Assignment is prohibited:
   • to a judge,
   • prosecutor,
   • or attorney involved in a case related to the claim in their official capacity.
4. Determination of the claim: Both existing and future claims can be assigned, but the claim must be sufficiently determined—i.e., its content, amount, and debtor must be known at the time it arises.
5. Prohibited assignments: A claim may not be assigned if: it is inseparably linked to the creditor’s person (e.g., alimony, compensation for personal injury or death),
6. Or if enforcement is not possible.

Summary

Once the original creditor (assignor) has assigned the claim, they acquire specific obligations toward the new creditor (assignee). These include the duty to transfer documents that prove the claim and related rights, and liability for the invalidity of the assigned claim.