Do you have debts to recover? Here are 10 things you need to consider in the debt collection procedure

debt collection

Do you have unpaid invoices? You don’t know how to proceed?
You want to recover your money and you want to know what to expect in the process?
You don’t know how long such a procedure takes?
What are the costs and what are the chances of success?

If you have asked yourself these questions, it means that you will find helpful the advice I present below on debt collection procedure.

How does it work?
Before turning to the debt collection procedure, an assessment of the debtor’s legal status is necessary, of its pending processes in courts of law.

Depending on the outcome of the legal report of the debtor (if in the courts of the law are registered against him: complaints according to the common law, requests for entry into insolvency, foreclosures, payment ordinances), the action plan must be specific and take into account two key aspects:

– The relevant documents in the file (which allow us to choose one of the following: complaints according to the common law, requests for entry into insolvency, foreclosures, payment ordinances);

– Determining the legal status of the debtor through various expert reports obtained from the Online Portal of Courts (for finding the number of disputes had), expert report from the Trade Registry, last balance sheets published by the Ministry of Finance and from the Central Payment Incidents (CIP).

Thus, through all these official reports can be estimated with greater precision the creditor’s risks in the debt collection procedure, the chances of success of the case, and of course, the accurate costs and fees for activities done.

Keep yourself informed
In this sense, once started a debt collection case, it’s helpful for the client to have a monthly briefing on the progress of the procedure, in order for the creditor to have clarity on the activities and financial implications of the process at every step.

The amiable phase
In order for the image of the creditor or the company to suffer as less as possible on the market, it is desired that the debt collection procedure not to affect the business potential, aiming as much as possible for a successful collection in the amiable phase and avoid the judicial phase. It is therefore necessary to identify the reason of non-payment and make the efforts to find alternative methods for recovering the debt: compensation, giving in payment, debt collection from those who owe money to the debtor.

Alternatives
Company administrators should realize that caution and prevention are the best ways to avoid debt collection cases. They must act preventive and seek ways to improve the contract agreements signed and work procedures with their clients. In order to reduce the chances of developing debt collection cases, in fact, to prevent the growth of non-payment cases. If the creditor acts promptly when the debtor doesn’t pay, the percentage of debt collection decreases significantly.

What should define the debt collection procedures?
Efficiency must be the key word in debt collection procedures, in this sense collaboration with professional and flexible executors, who understand the adaptation of standard procedures for each case and act promptly to creditor’s requirements, next to professional lawyers with experience in debt collection, is the recipe for success.

Managing the cases
It is important that each debt collection case is managed individually and not in large amounts, the focus on quality being essential. So, if you find yourself in a situation of debt collection, I hope you will find the above advice useful in your legal proceedings.


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