Sometimes, when a company is facing financial problems, it’s difficult to pay the creditors. In this exceptionally cases, collection agencies may be hired to recover some of the creditor’s losses. Usually, there is a fee or a part of the recovered debts that must be paid to these agencies.
There are some forbidden practices for a debt collector to use in his attempt to determine a debtor to pay its dues. It’s forbidden for a collector to use abusive language, to make public a list with the debtors (even though he can provide this information to other agencies) or to harass the debtor with numerous calls.
Also, the credit collector cannot use false statements in its attempts to recover the dues or using another identity. Accusations of any kind cannot be addressed to the debtor. The creditors cannot send a notification that looks like official documents, cannot give false information regarding the debtor to other agencies or use a false company name.
Another forbidden action is that the creditor cannot collect more debit than it supposed to, except the case where the state law provides so.
The collection agencies are also assisting the creditors during the trials against the debtors.
For enforce payment of the dues, the debtor must be judged by an authorized Court. A fee must be paid for issuing the case to the Court. The value of it is regulated by the Company Registrar according to the Court regulations. The judgment costs are usually paid by the defendant but it’s not a general rule, the judge may dispose that both parties must pay their part.
Normally, if the procedure for claiming is not disputed, the average time from issue of proceedings to judgment doesn’t take longer than a month.
A petition of bankruptcy can be filled only if the judgment was issued against the debtor.
After the judgment is issued, the procedures of enforcement may begin. The debtor’s assets may be object of the enforcement if the Court decides so. A subpoena for confiscation and sale of the surety's movable property can be emitted. The surety’s movable property must be part of public auctions.
If a loading order over the immovable assets of the debtor has been recorded with the Land Registry, a sale of it may be ordered if it’s necessary to cover the debtor’s dues.
The debtor’s assets may be freeze before the judgment issue by applying some measures after the claim was registered to the Court but only under some special circumstances. The immovable and movable properties can be part of the special seizure.
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