International debt recovery

Unfortunately, working with foreign clients not only means expanding your market, but also exposes you to the risk of non-payment by debtors based abroad. International debt collection requires knowledge of European regulations, private international law and the laws and procedures applicable in the debtor’s country.

1. The difficulties of collection abroad

• tracking the debtor,
• identifying the applicable law,
• identifying the competent judge,
• need for translations,
• knowledge and activation of enforcement procedures,
• dentifying a legal representative in the debtor’s country,
• costs and timeframes different between jurisdictions.

2. Preliminary legal assessment

• analysis of the agreement, if existing and valid, of the commercial documentation and of the credit evidence,
• analysis of the debtor’s solvency,
• international payment formal notice,
• negotiating repayment plans or settlement agreements.

3. Jurisdiction and applicable law

Jurisdiction depends on:

• contractual clauses,
• EU regulations and directives,
• international conventions.

4. Legal instrument within European Union

• European Payment Orders,
• European Small Claims Procedure,
• Automatic recognition and enforcement of judgments.

5. Extra UE credits

• verification of bilateral treaties,
• actions before local courts,
• cooperation with lawyers in the debtor’s country.

In this case, a preliminary analysis of the eligible assets is crucial for any assessment of the appropriateness of the action!

6. Role of the lawyer

• strategic case analysis,
• choice of the most effective forum,
• coordination with foreign professionals,
• international enforcement.

7. Prevention

• drafting effective and valid contractual clauses regarding jurisdiction and applicable law,
• use of guarantees (suretyship, letters of credit, reservations of title),
• performing preventive checks on the creditworthiness of foreign clients.

The Firm assist with:

• out-of-court and judicial debt collection, both within and outside the EU,
• European injunction,
• enforcement abroad,
• negotiation with foreign debtors,
• drafting international agreements; a contract without adequate clauses makes debt collection much more complex!!