When encountering a non-paying debtor, it can be quite complex for international traders to collect their debts as debt collection procedures vary from country to country, In this article, founding partner of Gurcan Partners Bedrettin Gurcan and Zülal San will mention Debt Collection in Europe and debt collection procedures several countries.
Debt Collection in Europe
What is Debt Collection?
Debt collection institution traces back to ancient ages where the money wasn’t even invented yet. Since there were traders in the World, there was debt. And since there was debt, there were debt collection procedures. We now know that the first debt collection institution was “debt slavery”. Fortunately, nowadays debt collection procedures are different from the past.
Debt collection basically signifies the process of pursuing payments from debtors. To pursue those payments from your non-paying business partners, certain procedural steps must be followed. These procedures are different in each country since the adopted enforcement codes are different and since there are differences with the business traditions.
Therefore, for international traders who face a non-paying debtor from a foreign country, it is essential to work with an attorney who has experience in that country.
Debt Collection in Europe
Procedures in General
In most of the law systems, there are two types of procedures for debt recovery: judicial and extrajudicial debt collection.
First and foremost, it is essential for both types of procedures to gather all the evidence regarding the debt such as signed agreements, delivery services proofs, invoice copies, etc. Then it is advised in most of the systems to inform your debtor by demanding the debt simply as a reminder. It is advised to state clearly the deadline for the debt.
Postpone proceeding the payment or not response, it is recommended to communicate us to start the legal actions.
Firstly, it is possible to recover debts by filling an action of debt. This extrajudicial first step is being used in most countries. By this method, it is possible to guarantee your collection because of the potential implementation of temporal measures against the debtor, as judicial actions generally take time. In some systems, courts can also make a decision by these actions.
Another extrajudicial method is an alternative dispute resolution. The most common types of alternative dispute resolutions are Arbitration and Mediation. An alternative dispute resolution institution aims basically to settle the disputes without any litigation. Also, the European Union provides online dispute resolution (ODR) by its online platform. In some cases, it is obligatory to apply for mediation method before any litigation.
Debt Collection in the Czech Republic
If you have a non-paying debtor in the Czech Republic, it is essential to work with an attorney who is knowledgeable and familiar with the Czech Law System besides working with foreign clients. Hence, procedures for foreign creditor may have some differences on the practise.
In the Czech Republic, firstly you need to gather all the proofs of the debt. Later on, it is necessary to inform your debtor and ask for the debt. With not receiving a response in 14 days, we can start the legal actions either by amicable methods such us ADR, or by litigation. It has importance to send warning letter with lawyer to able to start this 14 days in proper way.
Gurcan Partners provides legal services for debt collection in the Czech Republic with its experienced and expert attorneys.
You can contact our office in the Czech Republic from:
+420 234 717 540 (English)
or email us
info@gurcanpartners.com
Debt Collection in Estonia
If you have a non-paying debtor in Estonia, it is essential to work with an attorney who is knowledgeable and familiar with the Estonian Law System besides working with foreign clients.
In Estonia, firstly you need to gather all the proofs of the debt. Later on, it is necessary to inform your debtor and ask for the debt. With not receiving a response in 14 days, we can start the legal actions either by amicable methods such us ADR, or by litigation.
Gurcan Partners provides legal services for debt collection in Estonia with its experienced and expert attorneys.
You can contact our office in Estonia from:
+372 60 26 570 (English)
or email us
info@gurcanpartners.com
Debt Collection in Germany
If you have a non-paying debtor in Germany, it is essential to work with an attorney who is knowledgeable and familiar with the German Law System besides working with foreign clients.
In Germany, there are two compatible authorities for debt collection: the Local Court (Amtsgericht) for the claims up to 5000 Euros and the District Court (Landgericht) for the claims for higher amounts then 5000 euros.
Firstly you need to gather all the proofs of the debt. Later on, it is necessary to inform your debtor and ask for the debt. With not receiving a response in, we can start the legal actions either by amicable methods such us ADR, or by litigation.
Gurcan Partners provides legal services for debt collection in Germany with its experienced and expert attorneys.
You can contact our office in Germany from:
+49 211 976 35 818 (English)
or email us
info@gurcanpartners.com
Debt Collection in Hungary
If you have a non-paying debtor in Hungary, it is essential to work with an attorney who is knowledgeable and familiar with the Hungarian Law System besides working with foreign clients.
In Hungary, firstly you need to gather all the proofs of the debt. Later on, it is necessary to inform your debtor and ask for the debt. With not receiving a response in 14 days, we can start the legal actions either by amicable methods such us ADR, or by litigation.
Gurcan Partners provides legal services for debt collection in Hungary with its experienced and expert attorneys.
You can contact our office in Hungary from:
+ 36 1 808 9449 (English)
or email us
info@gurcanpartners.com
Debt Collection in Poland
If you have a non-paying debtor in Poland, it is essential to work with an attorney who is knowledgeable and familiar with the Polish Law System besides working with foreign clients.
In Poland, firstly you need to gather all the proofs of the debt. Later on, it is necessary to inform your debtor and ask for the debt. With not receiving a response, we can start the legal actions either by amicable methods such us ADR, or by litigation.
In Poland, dispute resolution methods are mandatory before going to court. When the dispute resolution method could not respond to the needs, it is possible to take the cases before the court.
Gurcan Partners provides legal services for debt collection in Poland with its experienced and expert attorneys.
You can contact our office in Poland from:
+48 22 153 03 60 (English)
or email us
info@gurcanpartners.com
Debt Collection in Serbia
If you have a non-paying debtor in Serbia, it is essential to work with an attorney who is knowledgeable and familiar with the Serbian Law System besides working with foreign clients.
In Serbia, firstly you need to gather all the proofs of the debt. Later on, it is necessary to inform your debtor and ask for the debt. With not receiving a response in 14 days, we can start the legal actions either by amicable methods such us ADR, or by litigation.
Gurcan Partners provides legal services for debt collection in Serbia with its experienced and expert attorneys.
You can contact our office in Serbia from:
info@gurcanpartners.com
Debt Collection in Turkey
If you have a non-paying debtor in Turkey, it is essential to work with an attorney who is knowledgeable and familiar with the Turkish Law System besides working with foreign clients.
In Turkey, firstly you need to gather all the proofs of the debt. Later on, it is necessary to inform your debtor and ask for the debt. With not receiving a response in 14 days, we can start the legal actions either by amicable methods such us ADR, or by litigation.
Since 2019, for disputes regarding commercial law, it is mandatory to apply for mediation before any litigation.
Gurcan Partners provides legal services for debt collection in Turkey with its experienced and expert attorneys.
This is the case in Turkey, in 2019 the mediation becomes mandatory with the commercial cases.
Gurcan Partners provides tailor-made legal services in 9 countries, in 13 languages.
Please contact us
We will back to you within 24 hours.
@: info@gurcanpartners.com
Or Call Us
Hungary Office:
+ 36 1 808 9449 (English)
Germany Office:
+49 211 976 35 818 (English)
Czech Republic Office:
+420 234 717 540 (English)
Poland Office:
+48 22 153 03 60 (English)
Turkey Office
+90 850 466 42 60 (English)
Estonia Office
+372 60 26 570 (English)
Our international team is ready to help you Dept Collection in Europe in 13 languages. Please do not hesitate to contact us.
Check out Gurcan Journal for more articles in 13 languages. Schedule your online meeting below.
To read our other articles:
- Company Formation in Hungary
- Company Formation in Germany
- Company Formation in Poland
- Company Formation in the Czech Republic
- Taxation in Hungary
- Company Taxation in Germany
- ICO Regulations in Germany
- Company Registration in Hungary I Step by Step
- Company Formation in Serbia
- Company Formation in Kuwait
Debt Collection in Europe
Att. Bedrettin Gürcan LLM, MA, PhDs
Zülal San LLBs
Gurcan Partners Europe
All rights reserved. All rights of Debt Collection in Europe article belong to Gurcan Partners. The author has no responsibilities from the information in this article. This article is prepared just to inform.
Please contact us via mail. We endeavor to respond within 24 hours.
Please contact us via mail. We endeavor to respond within 24 hours.
We will back to you within 24 hours.
@: info@gurcanpartners.com
Or Call Us
Hungary Office:
+ 36 1 808 9449 (English)
Germany Office:
+49 211 976 35 818 (English)
Czech Republic Office:
+420 234 717 540 (English)
Poland Office:
+48 22 153 03 60 (English)
Turkey Office
+90 850 466 42 60 (English)
Estonia Office
+372 60 26 570 (English)
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