Here Debt Recovery: Launch Your Amicable Debt Recovery Process and Preserve Your Business Relationships
Debt recovery is an essential process for any business facing unpaid invoices. However, maintaining a positive relationship with your clients while pursuing overdue payments can be a delicate balance. This article will guide you through the steps of launching an amicable debt recovery procedure online, ensuring that you can recover your debts efficiently without damaging your valuable business relationships.
Understanding Amicable Debt Recovery
Amicable debt recovery refers to the process of collecting outstanding payments through non-litigious means. This approach is often preferred because it aims to resolve payment disputes while maintaining a positive relationship with the debtor. A debt recovery agency plays a critical role in this process, stepping in when a company’s internal efforts to secure payment have been exhausted.
Why Choose Amicable Recovery?
The primary goal of amicable recovery is to preserve the client relationship. By keeping communications professional and courteous, the recovery process can often be resolved without escalating to legal action. For instance, at LegalCity, our approach is consistently amicable, focusing on maintaining the client relationship. Our procedure is also extremely efficient: it takes just three simple steps and about five minutes to submit unpaid invoices. Once submitted, our team initiates the recovery process with your debtor, achieving a success rate of nearly 80%.
Legal Prerequisites for Debt Recovery
Before proceeding with debt recovery, certain legal conditions must be met. The debt must be certain, liquid, and due. These characteristics, though not explicitly stated in the Civil Code, are essential in ensuring that the debt is recoverable.
Certainty of the Debt
According to Article 1315 of the Civil Code, the creditor is responsible for proving the certainty of the debt. This means that the debt must be indisputable.
Liquidity of the Debt
The debt must be monetarily quantifiable. The creditor must consider any payments already made by the debtor when calculating the amount owed.
Exigibility of the Debt
The debt must be due, meaning that the payment deadline has passed. The creditor cannot recover a debt that is not yet due or is subject to a suspensive condition.
Moving Beyond Amicable Recovery: The Payment Order Procedure
If amicable recovery efforts are unsuccessful, it may be necessary to initiate legal proceedings. The payment order procedure (injonction de payer) is a simplified legal process used when a debtor refuses to pay for goods or services rendered.
The Payment Order Procedure in France
When a debtor in France refuses to pay, the payment order procedure is the most appropriate legal action to take. This judicial procedure is typically employed when amicable efforts have not yielded results. One of the main advantages of this process is that it is “non-contradictory.” This means that the recovery of your debt can be done through a simple court order without the need for a hearing involving both parties.
The Payment Order Procedure in Europe
For cross-border debts within Europe, a European payment order can be utilized. This procedure is also simplified and depends on the country of the debtor and the amount of the debt. It involves using standardized forms specific to each country.
Preconditions for Initiating a Payment Order
A payment order can be initiated if the debt arises from a contract, obligation, or financial instrument, such as an unpaid invoice, credit, or lease.
Filing the Request
The request must include detailed information about both parties and the nature of the debt, supported by relevant documents such as contracts, unpaid invoices, and demand letters. Any missing information can result in the rejection of the request.
Submission of the Request
The creditor must submit the request to the appropriate court before the statute of limitations expires. It is advisable to seek professional assistance in drafting the request to ensure success.
Jurisdiction
The competent court depends on the nature of the debtor and the debt. For example, disputes with individual debtors may be handled by the district court, while disputes with professional debtors may be handled by the commercial court.
Issuance of the Payment Order
The payment order procedure is non-contradictory, allowing the judge to make a decision based solely on the evidence provided by the creditor. If the judge deems the request justified, an “order to pay” is issued. If the request is rejected, the creditor may pursue a traditional legal procedure.
Serving the Payment Order
The creditor is responsible for serving the order to pay on the debtor through a bailiff, at the creditor’s expense. This must be done within six months of the order’s issuance.
Contesting the Payment Order
The debtor has one month to contest the payment order after it has been served. If contested, the court will hear both parties and attempt to reach a settlement before issuing a judgment.
Representation by a Lawyer
Legal representation is mandatory for debts exceeding €10,000. However, it is not required before the judge for protection disputes, regardless of the amount. Judgments can be appealed by either party if the amount of the claim exceeds €5,000.
Enforcement of the Payment Order
If the debtor does not contest the payment order within the allotted time, the creditor can request the court to enforce the order, giving it the power of a judgment. The creditor can then hire a bailiff to execute the order.
Conclusion
Launching an amicable debt recovery process online is an efficient way to recover unpaid debts while preserving your business relationships. With the right approach and the support of a professional debt recovery agency, you can resolve payment disputes amicably and effectively. For businesses in France and Europe, understanding the legal frameworks for debt recovery is essential to ensuring successful outcomes. ESCEC International, an accounting firm based in Paris, offers comprehensive debt recovery services to help you navigate these processes smoothly.
