Debt Collection Romania

Due to the business climate in Romania, currently, the debts recovery procedure represents a major chapter of our daily activity.

Our lawyers are specialized in recovering debts from physical persons and legal entities, Romanian or foreign. Through the experience gained, we managed to develop efficient mechanisms for debts recovery.

We provide specialized legal assistance consisting in: drafting notices, procedure summons of payment, forced execution procedure, etc.

Our team of lawyers has a vast experience in recovering debts both amiably and reaching to the litigation.

According to te Romanian legislation, there are 3 major possibilities of debts recovery*:

1. summon of payment regulated by Ordinance no. 5/2001 and Ordinance no. 119/2007;
2. common law procedure, regulated by the Commercial Code;
3. insolvency procedure, regulated by Law no. 85/2006.

1. Summon of payment
2. • For summon of payment, you shall provide us documents that proves the debts (without penalties).
   • According to the Law, the documents should be signed by debtor. Preferably the documents should be also stamped by the debtor.
   • If all these conditions are met, the complaint shall be emergency judge.
   • In this procedure, an irrevocable and enforceable decision shall be obtained in maximum four (4) months.
   • The documents required by the Law are: invoices, orders, account files or any other written document proving the requested amount.

Our fee for all this procedures can vary in relation to amounts disputed and also be shielded by the principle of direct negotiation.

Also, in relation to the subject, the difficulty and the duration time of the dispute our team lawyers can put into discussion and success fees of.

The fee includes: pre-negotiation phase (drafting notices, negotiations, etc.), drafting, filing and representation in front of the Courts.

1. Common Law Procedure
2. • If there are no documents signed and / or stamped by the debtor then we shall use the common law procedure.
   • The disadvantage of this procedure is that the action takes relatively long, an irrevocable and enforceable decision, can be obtained in approx. 10 months (5 terms). Also the procedure is much expensive.
   • In this procedure we can use any proves.
   • This procedure includes: prior conciliation procedure - mandatory according to Romanian legislation, in this procedure - (drafting notification, negotiations, etc.), drafting, filing and representation in front of the Courts.
   • For this procedure the stamp duty for the Romanian state shall be about 8% of the total amount.
3. Insolvency procedure
4. • If the debtor is presumed bankrupt (the last payment is due to pay for more than 30 days) we could start the insolvency procedure.
   • Bankruptcy involves basically the same procedure as for summon of payment but can take much more time because the court must appoint a Liquidator.
   • The Liquidator is the person appointed to prepare documents for liquidation of the company.
   • The documentation includes inventory and balance sheet liquidation, stating the exact status of assets and liabilities of the Company. So all these operations may restricts and lead the Court to a longer time for analyzing the company status of insolvency.
   • The Liquidator is obliged to receive and keep the property of the company, records that have been entrusted by the administrators and all the company’s documents.
   • This procedure in Court takes between 6 and 12 months and sometimes could exceed 18 moths.
5. Forced execution procedure
6. • After obtaining an irrevocable and enforceable decision we shall begin forced execution.
   • Judicial executor’s (bailiff’s) fees are about 3% for the total amounts.
   • The procedure of force execution could take six (6) months.

If the debtor is outside Bucharest, we shall represent the client in front of the Court belonging to debtor registered office.

*Data from the section above are in accordance with the legislation in force but serve strictly informative.

Should you have additional questions, please contact us.

For any further details or information please do not hesitate to contact us.