Professional debt recovery agencies hold expertise in recovering the clients' debt with minimal costs. Legal proceedings can be initiated for debt recovery if the debtor is continually ignoring the demands for payment.
Debt recovery services in Spain must be contracted when other efforts have failed. Most professional services will begin by studying the solvency of the debtor, so that the possibilities to acquire a satisfactory recovery can be confirmed.
Different Possibilities Of Recovery
If a company or individual is owed money by a debtor in Spain and negotiations for payment have not succeeded, then outstanding amounts can be covered through several avenues.
Letter of Demand
A record should be maintained of all the contracts and documents related to the debt. A Letter of Demand is drafted against the debtors. Essentially, a Letter of Demand requests the debtor to pay the debt by a certain date, along with outlining the debt's details and specifying what legal action may be taken if the debtor does not make the payment.
Negotiations with the debtor
Professional debt recovery companies aim to recover the clients' debt with minimal costs. Legal proceedings can be taken for debt recovery if the debtor continually ignoring the demands for payment. Before proceeding to litigation, advice should be gained about a specific case since there happen to be several complicated rules in Spain that have to be followed. Also different courts in Spain deal with different levels of debt.
Proceso Monitorio (for debts up to €30,000): In this rapid process, once the debt has been demonstrated by presenting the relevant paperwork, the debtor is given 20 working days to admit or challenge the debt. If the debtor admits the debtor, or does not answer, then the execution of the debt is issued. If the debt is challenged, then the case goes to trial.
Proceso Concursal y de Quiebra: If the debtor causes bankruptcy and other creditors also have credits over the debtor's assets, then this approach may be taken. In this case, it is proposed to the court by the debtor that an agreement should be arranged with all of the creditors so that the assets can be administrated and the payment of the different credits can be organised.
What About Fees?
Generally, a professional debt collection service in Spain is based on a no-win, no-pay commission basis on whatever amount is recovered from the debtor, whether paid directly or through the company's office. Usually, a 10% fee is charged on the collection amount, along with 5% more if the whole sum is collected. Additional fees are also charged for business extracts and any other information to check a debtor, which they specify and agree with their clients beforehand. Debt collection has to be done within the regulatory framework of the Government.
The main advantage that the professional services for debt recovery Spain offer, is the fact that no upfront fee is taken. Therefore, whether collection of a full sales ledger management or a single debt is required, the no recovery, no fee service offered by a debt recovery company is the best option. You also need to make sure that the firm you hire is a member of industry organisations.
Whether you are hiring a debt recovery and collection agency in UK, Spain or any other country, the basics do not change. It is important to hire a recovery agency with a robust track record.
Debt recovery services in Spain must be contracted when other efforts have failed. Most professional services will begin by studying the solvency of the debtor, so that the possibilities to acquire a satisfactory recovery can be confirmed.
Different Possibilities Of Recovery
If a company or individual is owed money by a debtor in Spain and negotiations for payment have not succeeded, then outstanding amounts can be covered through several avenues.
Letter of Demand
A record should be maintained of all the contracts and documents related to the debt. A Letter of Demand is drafted against the debtors. Essentially, a Letter of Demand requests the debtor to pay the debt by a certain date, along with outlining the debt's details and specifying what legal action may be taken if the debtor does not make the payment.
Negotiations with the debtor
Professional debt recovery companies aim to recover the clients' debt with minimal costs. Legal proceedings can be taken for debt recovery if the debtor continually ignoring the demands for payment. Before proceeding to litigation, advice should be gained about a specific case since there happen to be several complicated rules in Spain that have to be followed. Also different courts in Spain deal with different levels of debt.
Proceso Monitorio (for debts up to €30,000): In this rapid process, once the debt has been demonstrated by presenting the relevant paperwork, the debtor is given 20 working days to admit or challenge the debt. If the debtor admits the debtor, or does not answer, then the execution of the debt is issued. If the debt is challenged, then the case goes to trial.
Proceso Concursal y de Quiebra: If the debtor causes bankruptcy and other creditors also have credits over the debtor's assets, then this approach may be taken. In this case, it is proposed to the court by the debtor that an agreement should be arranged with all of the creditors so that the assets can be administrated and the payment of the different credits can be organised.
What About Fees?
Generally, a professional debt collection service in Spain is based on a no-win, no-pay commission basis on whatever amount is recovered from the debtor, whether paid directly or through the company's office. Usually, a 10% fee is charged on the collection amount, along with 5% more if the whole sum is collected. Additional fees are also charged for business extracts and any other information to check a debtor, which they specify and agree with their clients beforehand. Debt collection has to be done within the regulatory framework of the Government.
The main advantage that the professional services for debt recovery Spain offer, is the fact that no upfront fee is taken. Therefore, whether collection of a full sales ledger management or a single debt is required, the no recovery, no fee service offered by a debt recovery company is the best option. You also need to make sure that the firm you hire is a member of industry organisations.
Whether you are hiring a debt recovery and collection agency in UK, Spain or any other country, the basics do not change. It is important to hire a recovery agency with a robust track record.