It may cause serious liquidity problems for a business if a business partner, client, tenant or other contractual party fails to pay its debt on time. Managing outstanding receivables is not only a financial issue, but also a legal one: it is important for the company to act in time, with proper documentation and a legally considered strategy.
Dobrocsi Law Firm provides legal assistance to companies in enforcing claims, preparing payment demands, negotiating settlements, and conducting payment order, litigation and enforcement proceedings.
Before initiating any procedure, it is advisable to review the legal basis of the claim, the amount claimed, its due date and the available evidence. Such evidence may include, in particular, contracts, invoices, certificates of performance, purchase orders, handover documents, correspondence and any acknowledgements of debt.
Proper preparation may significantly increase the chances of successful debt recovery and may also help the company choose the legal tool most appropriate for the nature of the claim.
In many cases, a properly drafted lawyer’s payment demand may already lead to payment. The payment demand can clearly set out the legal basis of the claim, the amount due, the due date, the deadline for payment and the further legal steps that may follow in the event of non-payment.
The advantage of a lawyer’s payment demand is that it clearly and formally indicates to the debtor that the creditor intends to enforce its claim and is prepared to initiate further legal proceedings if necessary.
If the debtor fails to pay despite the demand, one possible tool for enforcing the claim is a payment order procedure. In many cases, this may be a faster and more cost-effective solution than litigation; however, if the debtor files an objection, the case may turn into litigation.
Before initiating a payment order procedure, it is therefore advisable to assess legally how well the claim is supported by evidence, what documents are available and whether the debtor is likely to dispute the claim.
If the claim is disputed, or if the debtor objects to the payment order, litigation may follow. In court proceedings, the contractual background, proof of performance, invoicing, correspondence and all other evidence supporting the legal basis and amount of the claim are of key importance.
Once a final court decision or other enforceable document is available, enforcement proceedings may be initiated. The success of enforcement depends, among other things, on the debtor’s financial situation, bank account balances, income, movable assets and real estate.
Litigation is not always the most appropriate solution. In certain cases, it may be more efficient to conclude an instalment payment agreement, an acknowledgement of debt or a settlement with the debtor.
Our law firm also assists in preparing such agreements, with particular attention to properly recording the amount of the debt, payment deadlines, the consequences of delay and the creditor’s further enforcement options.
For companies where outstanding receivables arise regularly, it may be advisable to organise debt recovery not on an ad hoc basis, but within the framework of ongoing legal support. This allows payment demands, settlement negotiations or, where necessary, legal proceedings to be initiated more quickly.
If your business regularly faces non-paying partners, it may also be worth considering our fixed-fee legal services for companies.
If your business requires predictable, continuous and professional legal support, please contact our law firm for a personalised offer.
If you require legal assistance, please feel free to contact us.
Dobrocsi Law Firm
Phone:
☎ +36 70 337 2333
☎ +36 70 433 7979
Email: [email protected]
If your business requires predictable, continuous and professional legal support, please contact our law firm for a personalised offer.
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