Guide To International Debt Collection

International Debt Collection

International laws and regulations regarding the recovering credit exist, but the failure to implement these laws can result in creditors experiencing difficulties. It is possible to recover credit without needing to take legal action.

The result of a high number of transnational transactions is that serious problems can be encountered during the process of recovering money that is owed to you, above all the difficulty of finding information regarding the credit worthiness of the debtor who lives abroad.

Yet, you can protect yourself from these situations by creating contracts, which will aid you when waiting for payments that have not arrived.

For a company receiving what is owed to them is essential to survive and to grow, thus for them it is good to know that, in the absence of clear responses from the part of the debtors who are abroad, one can contact professional support so as to recover the expected sums as soon as possible.

This is true for both Italians that are waiting to receive money from foreigners, and for foreigners who are waiting to receive money from Italians.

Payment Injunction in Europe

In Europe the 2006 regulation applies n.1896/2006 on the basis of which, the requesting individual, can obtain a payment order, valid and executive in all European countries (except in Denmark).

It is known as the "the European payment injunction procedure", the measure may be issued by any European court.

This is used to reduce the costs and time of "cross-border controversy regarding non-contested pecuniary credit."

Creditors can turn to foreign courts

If there is any doubt surrounding the speed or reliability of one's own national courts, it is good to know that each creditor can appeal to foreign courts to succeed in recovering one's money.

This solution can be chosen to also avoid the risk of exemptions on the debtor's part, whilst the case is in process.

The relevant law

Italy is among the signatories of the Convention of the Aia on the 15th June 1995, the law relevant to the international sale of goods, that provides for contracts that are "governed by the law chosen by the parties, as well as the general spirit from the agreement and the circumstances of the case."

The European Union has throughout its existence established various laws to regulate the relevant law for contracts "with international elements."

In 1980 the Convention of Rome established standard regulation regarding conflicts in this...