Debt collection
Get what you deserve.
Someone owes you money and isn't responding to calls or messages? A familiar situation. There are legal tools that work, but it's important to know which ones to use and when. The sooner you act, the greater your chances of collection. Debt collection often begins even before you finalize a deal; by preparing properly and securing everything, you can often prevent future problems.
Frequently Asked Questions
Most often, the first step is a written warning in which you call on the debtor to pay. If they do not respond, you can initiate enforcement proceedings or file a lawsuit, depending on the type of claim. It is advisable, before or during the proceedings, to also seek certain collection security measures, such as a lien on real estate.
The procedure is similar to that for an individual: a written warning is usually sent, and then enforcement proceedings are initiated. For legal entities, it is important to act quickly because they can quickly find themselves in business trouble. If the debtor is in bankruptcy or pre-bankruptcy, the claim must be filed in the bankruptcy proceedings.
If the debtor currently has no assets, enforcement cannot be carried out temporarily. However, the claim does not cease; as soon as the debtor acquires assets, enforcement can resume. It is worth monitoring the situation and, if necessary, restarting the proceedings.
Not for long. Debts become time-barred depending on the type of debt; the statutes of limitations vary, but they are most often three or five years. Once a debt is time-barred, it's harder or impossible to collect. The sooner you act, the better.