Debt Collection Process in Portugal

Debt Collection Process in Portugal | Debt Collection Fees in Portugal

In case your customer doesn’t comply with its duty to pay, it is very crucial that you act fast, as old debts have a smaller possibility of being regained.

In the event the debtor will not respond or pay, a second letter will be sent by the attorney following the first letter.

If there’s still no response, a third letter will be sent by the attorney, warning when the debtor will not pay, legal action will probably be taken.

For the reason that occasion, the attorney can make telephone calls and will do a little research concerning the finances of the business.

In this period, the attorney will even make an effort to achieve a resolution with all the debtor, that may contain guarantees, to ensure payments will occur as agreed.

It is very vital that you secure a resolution in case the debtor is unable to cover the entire sum owed, as in Portugal, this resolution is recognized as an executive title, that may enable immediate confiscating of the debtor’s assets and prevents the importance of wide-ranging common proceedings.

The judicial stage will likely be started in case the debtor will not pay throughout the period that is extrajudicial but just in consultation with all the customer.

1. Order

The Portuguese legal system provides a process called “Order for Payment”, which can be a comparatively economical and fast means, in terms of court fees are worried, to get an executive title.

After Order for Payment records are filed, the debtor will likely be summoned raise a defence or to pay the debt. In the event the debtor will not contest the claim inside the aforementioned deadline or will not pay, a judgement will be in the Court. The lender will likely be notified of the executive title instantly, therefore the order may be applied.

Sometimes, it’s going to be necessary to make use of proceedings that are common because of the intricacy of the case. But these proceedings tend to be more costly and will take more.

2. Liquidation

Portuguese law permits petitioning to get the debtor wound up in the event the debtor is insolvent. The aim of the proceedings is by selling the debtor’s assets to equally meet all lenders.

You will be advised by the attorney coping with your case on the most effective strategy for every particular case.

Don’t wait to get in touch with our Portuguese Team regarding your debt recovery in Portugal, early collections is the key for successful collections. Use the Contact form and we will get back to you the same day.