Displaying items by tag: Enforcement services Eruope

Sunday, 11 August 2013 14:34


Legally Progressive

Damir Site Enforcement Officer – Serbia

Below is an outline of how our Office will advance the work on recovering your claim.

Stage 1. Free preliminary case evaluation: We review the case to determine if the company/debtor is still operating as a going concern, confirm the current address and location of the debtor, telephone number, real estate holdings, bank accounts, employment, personal property, financial status and overall credit worthiness, and any information that will allow us to establish an expectation of a positive outcome. There are no field calls and site inspections during this Stage. If we determine a positive outcome is not a plausible expectation, we will make our findings known.

Stage 2. Amicable collection: From time to time we can seek and get the voluntary cooperation of the debtor to pay and satisfy the judgment without any enforcement actions being taken. Any money recovered in Stage 2 will be subject to a negotiable contingency fee, based on a lump sum payment. Stage 2 will usually last no more than thirty days (30). If we are not able to achieve a positive outcome we will proceed to Stage 3. Most clients skip Stage 2.

Stage 3. Civil enforcement proceeding (CEP): There is a government-fixed cost for the CEP and those costs will be presented separately for your consideration and approval. With our findings in Stage 1 & 2, we will proceed to seize, attach and sell property, garnish bank accounts and garnish wages or pensions (if we confirm place of employment), file orders for debtor examinations, post judgment discovery, seize, attach and sell the debtor’s company shares, real estate property, and perform all other civil enforcement actions prescribed by the Serbian 2011 Civil Enforcement and Security Interests Act.

The creditor/client is responsible for pre-payment of all Stage 3 related costs. Court cost and administration fees vary depending on the principal sum that is to be recovered.
These costs and fees will be itemized and presented to the client for their approval. All payments made by the creditor during Stage 3 are enforcement procedural costs that are be recovered from the debtor.

During judgment recovery enforcement proceedings, Serbian laws do not allow any stay of execution, or other legal remedies related postponements of civil enforcement actions, proposed by either of the parties (nor the debtor, or the creditor).

For more information please visit our website.

If what we have to offer is interesting to you we would be delighted to engage in further discussion on how we can launch an effective collection platform. Contact us to tell us about your case.

Published in Connexx
Tuesday, 16 April 2013 18:16



The legal chamber Leszek Czarny, Wojciech Budny and Partners limited partnership was founded in 2003 and its partners are: Leszek Czarny, Wojciech Budny and Michał Kuryłek.

The Office renders services to individuals and legal persons. Among the wide range of clients there are, apart from domestic entrepreneurs, also foreign subjects.



Rapid development of the recovery and debt trading market in Poland took place after the year 1990, as a result of the country's economic transformation. Initially, the activities of debt collection companies expanded in two main directions:
• trading of debts of large state-owned enterprises, mainly from the heavy industry sector (mines, smelting plants, arms industry) - main factor affecting the development of this market segment was the possibility of settling tax liabilities with the acquired claims against the State Treasury,
• trading of claims against the national health care service.
Since the mid-90s, interest in commercial receivables has rapidly grown, which in the subsequent years resulted in a dynamic development of companies involved in handling this type of debt.


Division of the debt market into segments can be done due to, among other things, the type of debt.
According to the most commonly used classification we can distinguish:
• mass debt market (consumer - B2C)
• business debt market (B2B)
The consumer debt market (B2C), also called the mass debt market, refers to the debts of individuals (abbreviation B2C Business-to-Consumer is the name of the relations between a company and a customer). The term concerns debts in the business sector, financial sector, telecommunications and energy sectors. It usually refers to the low-value obligations of households, i.e. invoiced liabilities (telecommunications, gas, electricity), loans, insurance premiums, etc.
The business debt market (B2B) refers to debts of companies (liabilities of enterprises due to other enterprises) related with delivery of goods and services. B2B receivables, unlike B2C, do not have a mass character (the number of debtors in a single creditor is usually small), while the average value of one commitment is significantly higher than in the case of consumer debt.


• Purchase of debt portfolio,
• Encashment (commissioned recovery),
• Collection on one’s own.
Purchase of Debt Portfolio - Debt changes its owner and the debt collection company in charge of the debt, assumes the entire risk associated with managing the receivables, and operates in its own name. It is a very expensive business because collectors need to have means to purchase debt portfolios, but they are also able to select a recovery strategy, and they may use such tools and methods that suit them in the longer perspective than the Encashment model. The business model in force since 2005.

Encashment (commisioned recovery) – collection agency operates to its client’s order, i.e. the creditor (the person or company to which we owe money) instructs its debt collection. Debt collection agency recovers the debt on behalf of the creditor, against payment contingent upon the successful negotiation of the debt repayment. Methods and tools for recovery must be agreed with the person ordering the recovery and the duration of recovery is usually shorter than in the case of debt portfolios recovery. Predominant business model up to 2005.

Collection on one’s own - ruling model in the 90-ties of the last century.


• Increased value of loans granted,
• Increased tendency of creditors to outsource debt recovery,
• Growing number and value of debt buying transactions.


Domestic companies are still growing rapidly, banks are increasingly willing to sell still new debt portfolios, and large multinational companies have joined the struggle for the receivables on sale. In this context, it is not surprising that the Polish market is held up as a model for other countries in Central and Eastern Europe, and it is no longer perceived as a developing market, but a mature one.

The mere glance at the figures shows that over the years, debt trading in Poland has become a serious and profitable business.

It is estimated that still in 2011-2012, retail portfolios with a nominal value of about PLN 7 billion were sold. Today, one can talk of a supply of up to PLN 16 billion. Moreover, it is possible that in the coming years, this result will be further improved as sill relatively few portfolios secured by mortgages get on the market.

For more information, visit our website:

Published in Connexx
Tuesday, 16 April 2013 18:16




In this guide we detail legal procedures that are available to you, as a creditor to facilitate recovery of debt due to your company. We wish to emphasise that it is very important prior to beginning the legal process that the correct and most efficient procedures are employed that apply to the unique circumstances of your case as this will drastically impact upon the chances of collecting the outstanding debt due to your organisation. You should seek professional legal advice in this regard, as to do so will save you time, money and avoid frustration during the Legal collection process should an inappropriate option be chosen. This is particularly important in relation to large value debts where there are more legal options available to a creditor than would apply to low value debts.


It is very important that your Solicitor sends a demand letter to the debtor on your behalf. If a demand letter is not sent this may have consequences in relation to recovery of the debt and the recovery of the costs of any future legal proceedings. Whilst you may have sent demand letters yourself as a creditor it is likely that they will have been ignored particularly if you are a creditor based abroad. If you are based abroad and your Solicitor has sent a demand letter you should still instruct your Solicitor in Ireland to send one as the response rate will be greater if the letter is sent from Ireland. The object of the demand letter is to obtain some form of response from the debtor whereby it may be possible either to be paid amicably or to enter into some form of payment plan and avoid legal proceedings.


If step 1 does not result in payment being made or a payment plan being entered into then it is necessary to issue legal proceedings. As emphasised above it is very important that the most appropriate legal process is chosen. We set out below details of the legal process in Ireland


CIRCUIT COURT PROCEDURES – Debts between €15,000 - €75,000



Interest can be claimed at the contract rate in any proceedings. However, where there is no contractual provision, the Court may award interest at its discretion.

Also, for contracts entered into after the 8th of August 2002, EU regulations now allow for interest to be charged on all late payments (after 30 days have lapsed) at a rate of interest linked to the ECB base rate.

After Judgment is awarded, interest is automatically applied to the Judgment debt at a statutory rate, currently 2%.


Costs will be awarded to Creditors by the Court depending on the debt due.


If the debtor fails to pay the creditor and Judgment is obtained it will be necessary to enforce that Judgment in order to be paid. Options in this regard are detailed below


To bring a Judgment to the attention of the public at large it must be published. Judgments, once registered, are published in the Experian All Ireland Gazette, and Stubbs Gazette, both of which are weekly publications giving a list of all the Judgments registered that week.

Both gazettes are widely read e.g. by bank managers, credit controllers, finance houses etc and the information relating to Judgments published is also available to the public on-line. Therefore the consequences for a debtor of publication is very serious.


Each county in Ireland has a Sheriff who is a civil servant and part of whose responsibility it is to seize, and sell, goods belonging to Debtors in discharge of debt. This process is relatively inexpensive and depending on the circumstances of the particular case is normally the preferred method of enforcement. The Sheriff will not seize tools of trade, or essential household items.


This is an effective legal enforcement option whereby monies owed to the debtor by a third party may be protected and paid to the creditor instead. This enforcement method is dependent on the Creditor having good intelligence in relation to any monies due, but not yet paid, to the Debtor from third parties. In such circumstances, the Creditor can apply to court for a Garnishee Order directing that such monies be paid by the third parties directly to the Creditor.

Timing would be important in that third parties would want to be advised of the Garnishee Order before the monies were paid to the Debtor.


This is a similar process to Garnishee except the ultimate objective is for the Creditor to receive the net sale proceeds of an asset, car, land, house or rent from a property or funds being paid regularly by a third party to the debtor.


Once Judgment has been obtained in court, the Creditor can then apply in court to have a Judgment mortgage registered on deeds to the debtor’s property, which would prohibit any dealings with that property unless the relevant debt is discharged.

The Creditor can take a further step and have the relevant property sold, so that the debt is discharged, by applying to the court for a Well Charging Order and Order for Sale of the property.


LIQUIDATION OF LIMITED COMPANIES - Applicable to debts over €10,000

To pursue repayment of debt from a limited company one of the most effective options open to a Creditor would be to liquidate the company. Such proceedings are quick and often will inducement the company to repay the debt and so avoid this serious sanction against it. This process is particularly effective in relation to recovery of large debts but should only be used in relation to debts that are undisputed.

To commence the process a document known as a statutory demand is served on the debtor company personally at its registered office. The limited company has 21 days from the date of service in which to either pay the debt or dispute the debt. If the limited company takes neither option, a winding up petition can be issued and a liquidator is appointed to wind up the company. The purpose of this process is to put maximum pressure on the debtor company to pay its creditor and it is highly effective in this regard because the consequences of being liquidated are obviously very serious. Apart from the fact that the company will no longer technically exist and will have to cease to trade there are consequences for the Directors of the company who may be restricted from remaining or becoming directors of any other company and there are financial implications for them in this regard as well..

BANKRUPTCY – Individuals – applicable to debts over €20,000

When a Creditor fails to have a debt repaid on foot of a Judgment one of the legal options open to him / her is to declare the relevant Debtor bankrupt – in itself, an additional inducement to the Debtor to repay the debt

The Creditor can seek to bankrupt an individual without a Judgment, but many bankruptcy actions are taken where Judgments have been granted but have been returned nulla bona (no goods) by the Sheriff.


With good intelligence a Creditor may apply to the court, in anticipation of his/her application for Judgment, for a Mareva Injunction where he/she can demonstrate there’s likelihood that the relevant Debtor may dissipate assets or act in such a way as to defeat any future Judgment. This is a procedure to seek to secure these assets.

If successful, the Order handed down can relate to specific assets or be of a more general nature in that it might prohibit the Debtor from reducing his/ her assets below a certain level.


If you need assistance with debt collection in Ireland you are most welcome to contact Matthew Wales Solicitor by email or telephone 003531 2935110. We would be pleased to discuss on an informal basis any cases that you may wish to action in Ireland with no obligation.

Wales & Co Solicitors

Published in Connexx