Debt recovery is best started even before a problem arises. A well-drafted contract, clear payment terms and proof of delivery of goods or services are the foundation of success. If your documentation is in order, the whole later process is faster and cheaper. That is why we recommend keeping orders, invoices, e-mail communication and confirmations of receipt.
The first practical step in case of default is a pre-litigation payment notice. This is a written request for the debtor to pay within a set deadline, with a warning about possible further legal steps. This notice is often enough to make the debtor pay voluntarily, as they realize you are serious about the matter. At the same time, it serves as proof of your effort to resolve the issue amicably.
If the notice does not work, the next step is asserting the claim in court. Depending on the nature of the debt, you can use either standard court proceedings or expedited proceedings, which are especially suitable for undisputed monetary claims. The goal is to obtain an enforceable title, meaning a decision on the basis of which you can compel the debtor to pay even against their will. At this stage it is important to correctly calculate the principal, late payment interest and the costs of the proceedings.
Once you have an enforceable decision and the debtor still does not pay, enforcement comes into play. An enforcement officer can seize bank accounts, wages, property or other assets of the debtor. The success of enforcement mainly depends on whether the debtor has anything to pay from, so it is worth checking their financial situation in advance. Good preparation in the previous steps significantly increases the chance that you will actually get your money.
Throughout the whole process it is also worth considering a settlement or an installment plan. Sometimes it is faster and more advantageous to receive part of the money immediately than to wait years for the full amount. An experienced lawyer will help you assess when it pays to push for a firm solution and when a compromise is reasonable. However, the decision should always be based on the real recoverability of the debt.
If you are dealing with an unpaid invoice or debt and do not know how to proceed, we are happy to help. At kohút & partners in Zvolen we offer a consultation at a fixed price and respond to your message within 24 hours. Get in touch and together we will find the most effective path to your money.