Because of the erratic business climate in Romania the debts recovery procedure became a major chapter of our daily activity. Our lawyers are higly skilled in recovering debts from physical persons and legal entities, Romanian or foreign. Since we are thoroughly familiar with this field, we always manage to develop efficient mechanisms for debt recovery instances.
We provide professional legal assistance consisting in: drafting notices, summons for payment procedures, forced execution procedures, etc. Before initiating any legal actions our lawyers will make every effort to amicably recover the debt.
According to Romanian legal provisions, there are three major possibilities of debt recovery:
Summons for payment
The summons for payment procedure requires explicit documents that can prove the debts (without penalties). According to law, the documents should be signed by the debtor. If possible, the documents should be also stamped by the debtor. If all these conditions are met, the complaint shall be immediately judged. In this procedure, an irrevocable and final decision shall be obtained in maximum four (4) months. The documents required by law are: invoices, orders, account files or any other written document proving the concerned amount of money.
Our fee for all these procedures can vary depending on the amounts disputed. A success fee may be added to the final costs depending on the difficulty and the duration of the dispute.
The fee includes: pre-negotiation phase (drafting notices, negotiations, etc.), filing and representation in front of the Court.
Common Law Procedure
If there are no documents signed and / or stamped by the debtor then we have to use the common law procedure.The disadvantage of this procedure is that it takes a relatively long time; an irrevocable and final decision can be obtained in approx. 10 months (5 terms).
Also the procedure is much more expensive. In this procedure we can use any proofs. 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 Court.
For this procedure the stamp duty for the Romanian state shall be about 8% of the total amount.
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 summons for payment but it can take longer, 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 restrict and lead the Court to analyze the company’s status of insolvency for a longer period of time.The Liquidator is obliged to receive and keep the company’s records, which have been entrusted by the administrators, and all the company’s documents.
This procedure in Court takes between 6 and 12 months and sometimes it can extend to over 18 moths.
Forced execution procedure
After obtaining an irrevocable and enforceable decision we begin forced execution.
Judicial executor’s (bailiff’s) fees are about 3% for the total amounts.
The procedure of force execution can take six (6) months.
If the debtor is outside Bucharest, we can represent the client in front of the Court.
* Data from the section above are in accordance with the legislation in force, but serve strictly as informative.