Debt collection

Debt collectionincludes legal actions, proceedings, factual actions that aim at repayment of debt by a debtor for the benefit of a creditor.Debt collection may be carried out by means of court proceedings or pre-trial proceedings including actions such as issuance of a payment reminder or a warning letter. Debt collection within the framework of court proceedings aims at enforceability of accounts receivable effected by means of proceedings conducted before a court.

Kinds of Debt Collection

We may differentiate two fundamental debt collection methods:

Amicable debt recovery  – issuance of warning letters in order to remind a debtor of the lapse of time limit for a debtor to act in a specific manner, which aims at repayment of debt by a debtor.

Debt recovery before the court – the case with a debtor unwilling to cooperate resulting in the issuance of a warrant of payment by a court, that serves the basis for enforcement proceedings to be instituted by a court bailiff.