ENTREPRENEUR HANDBOOK

No Result
View All Result
  • Finance
  • Technology
  • Marketing
  • Human Resources
  • Insurance
  • Legal
  • Procurement
  • eCommerce
  • Leadership
Advertisement
ENTREPRENEUR HANDBOOK
No Result
View All Result
ENTREPRENEUR HANDBOOK
No Result
View All Result
Finance

International Debt Collection: Strategies for Recovering Debts Across Borders

By Editorial team | Updated February 1, 2024 (Published 1/2/2024)

Recovering debts in foreign countries might seem like a daunting task, but it’s entirely possible, thanks to a framework of international laws and regulations specifically designed for international debt collection. With the rise of globalization and the subsequent increase in cross-border transactions, encountering difficulties in receiving payments from debtors based abroad has become a common issue.

Related posts

Why a fractional GC model is Often a smart move for scale-up legal support

Understanding the Return Potential of Entrepreneurship Through Acquisition (ETA)

Why Europe Is the Global Leader in Digital Transformation for Enterprises

However, the key to recovering foreign debts efficiently lies in proactive measures and assuming the possibility of non-payment and protecting oneself accordingly.

Methods of International Debt Collection

When it comes to international debt recovery, two primary methods can be pursued based on the unique circumstances of each case:

Out-of-Court International Debt Collection

Before resorting to legal action, attempts can be made to recover debts through extrajudicial means. This approach involves sending pre-action letters to the foreign debtor, aiming to resolve the debt amicably. It provides an opportunity for the debtor to voluntarily repay the debt, potentially through installments or negotiated settlements, preserving relationships for potential future collaborations.

International Debt Collection in the Courtroom

Opting for judicial means involves several pathways based on factors such as the contract type, debt amount, debtor’s country, court location, and applicable law. This route requires thorough understanding and adherence to the legal and commercial norms in the debtor’s country, conducting an asset check, and assessing the feasibility of debt recovery through court orders.

International Debt Collection in Legal Procedures

Within Europe, various procedures exist to facilitate the collection of debts in different member states:

European Payment Order Procedure

The European Payment Order Procedure enables obtaining a payment order valid across European countries (excluding Denmark) to streamline cross-border debt litigation for uncontested claims, although the debtor has the right to object within 30 days.

European Enforcement Order for Uncontested Claims

The European Enforcement Order for Uncontested Claims allows the free movement of judicial decisions among EU member states for uncontested claims without additional recognition procedures.

Procedure for the European Bank Account Preservation Order

The European Bank Account Preservation Order (EAPO) is a legal procedure designed to protect a debtor’s bank account in situations where there is an urgent threat to debt recovery. This process is particularly relevant in cross-border cases within the European Union (EU), where a creditor seeks to preserve funds in a debtor’s bank account to ensure the eventual satisfaction of a debt.

European Small Claims Procedure

The European Small Claims Procedure is a legal framework designed to simplify and expedite the resolution of cross-border disputes involving relatively small amounts of money within the EU. This procedure specifically applies to disputes with a monetary value below €5,000.

Considerations for Debt Collection

The choice of court and applicable law varies across legal systems, affecting the creditor’s position differently in different countries or regions. Regulations such as the Hague Convention, Rome Convention, and Rome I Regulation govern aspects of international contracts and their enforcement.

Concluding Thoughts

To navigate the complexities of international debt collection, seeking professional assistance from international debt collection law firms is often indispensable. These experts possess the knowledge and skills necessary to ensure a smoother recovery process, safeguarding the interests of those owed.

Related Posts

Legal

Why a fractional GC model is Often a smart move for scale-up legal support

Scaling a business is exciting. There’s momentum, ambition and often a growing sense that things are starting to click. You’re...

Published by Sarah Clark
7th May 2025
Read more
Finance

Understanding the Return Potential of Entrepreneurship Through Acquisition (ETA)

The traditional image of entrepreneurship often involves a brilliant idea, a garage, sleepless nights, and a high-stakes gamble on creating...

Published by Editorial team
4th May 2025
Read more
Technology

Why Europe Is the Global Leader in Digital Transformation for Enterprises

In today's rapidly evolving digital landscape, organizations worldwide are racing to adopt innovative technologies and modernize their operations. Amid this...

Published by Editorial team
16th April 2025
Read more
Advertisement
Advertisement
Entrepreneur Handbook

Copyright © 2013 – 2025 Entrepreneur Handbook Ltd. All rights reserved. Registered offices at 20-22 Wenlock Road, London, N1 7GU, UK.

Sections

  • Finance
  • Technology
  • Marketing
  • Human resources
  • Insurance
  • Legal
  • Procurement
  • eCommerce
  • Leadership
  • Luxury
  • Start a business

Information

  • Advertise with us
  • Privacy policy
  • Terms of use
  • Contact us

Copyright © 2013 – 2025 Entrepreneur Handbook Ltd. All rights reserved. Registered offices at 20-22 Wenlock Road, London, N1 7GU, UK.

  • Finance
  • Technology
  • Marketing
  • Human resources
  • Insurance
  • Legal
  • Procurement
  • eCommerce
  • Leadership
  • Advertise with us
  • Privacy policy
  • Terms of use
  • Contact us

Copyright © 2013 - 2025 Entrepreneur Handbook Ltd. All rights reserved. Registered offices at 20-22 Wenlock Road, London, N1 7GU, United Kingdom.