What is the difference between out of court and judicial debt collection?
Out-of-court debt recovery refers to all activities aimed at bringing the debtor to an amicable settlement of his debt, by means of written and verbal solicitations, also carried out through direct contact with him by means of home visits.
Judicial recovery, on the other hand, refers to activities carried out by lawyers registered in the professional register, through the procedure of the laws in force and subject to the judgement of the competent court.
But how long does an out-of-court case is managed?
It is rather difficult to give an absolute answer to this question, let us say that files are kept “alive” for a maximum of 60 days, with different timeframes depending on the processing required, for example, a debtor who is unavailable on an initial visit and who requires in-depth research before starting the transaction or cases where plan of payment have been established more that 60 days and so on.
In case of success, what is the fee due to you?
In order to be able to establish the best quotation, we always suggest carrying out a case evaluation. We will certainly also meet the needs of our client here.
What if you cannot recover anything?
In the event of a negative file in the out-of-court phase, a declaration is issued stating that it is impossible to recover the money in an amicable manner, and against this activity the judicial phase of recovery is recommended or not.
Does the judicial procedure start automatically after the out-of-court phase, i.e. after 60 days without obtaining payment?
Absolutely not, any action other than out-of-court cannot be carried out by the debt collection company, only and after our suggestion, if the client decides to take legal action, the he will have to give a regular mandate.
If the debtor proposes a lower payment or a repayment plan?
The debt collection company has no authority to collect lower amounts and/or defer payment unless authorized by the creditor unless it is decided at the beginning of the management of the case to allow the debtor to pay a certain amount as full and final settlement of the account.