Ensuring a successful recovery of outstanding financial obligations from debtors within the jurisdictions of France and Europe typically necessitates the strategic input of a seasoned professional, capable of offering both non-contentious and contentious strategies.
In the realm of non-contentious solutions, a specialist in the field is well-equipped to provide a swift and efficient response, often beginning with the dispatch of a strongly-worded formal notice to the debtor who is resisting payment. This individual can also participate actively in negotiation proceedings, and if the circumstances so demand, broker a mutually agreeable settlement arrangement that facilitates debt clearance.
Should these non-contentious attempts be met with failure, the professional is expected to suggest suitable legal strategies to follow for a swift, cost-efficient recovery of the outstanding debts.
Prior to instigating legal action, which can extend over several weeks or even months depending on the complexity of the situation, the professional can opt for the implementation of protective measures. These precautionary steps are time-tested and have demonstrated efficacy in safeguarding the creditor’s interests.
Potential Protective Measures:
Protective measures serve as an influential strategy due to their ability to prevent debtors from cloaking their assets by freezing them until an enforceable judgment permitting their appropriation is achieved. Additionally, these measures exert a certain degree of psychological pressure on the debtor, who unexpectedly finds their assets immobilized. It’s been observed that debtors are often inclined to voluntarily settle their obligations, or at least enter into non-contentious negotiations, when such protective measures are implemented.
Unless specific exceptions apply, protective actions such as the seizure of bank accounts, require judicial approval.
In France, to secure such protective measures, it’s necessary to demonstrate :
A/ The legitimacy of the claim in principle
B/ The risk of non-recovery of the debt.
However, these prerequisites for authorizing protective measures might vary across different European countries, depending on their respective legislative frameworks.
Potential Legal Procedures:
In France, creditors are primarily afforded three avenues for initiating legal proceedings:
A/ Payment injunction
B/ Expedited proceedings
C/ Full trial proceedings
The selection among these processes heavily depends on multiple factors such as:
- The monetary value of the claim;
- The complexity of the commercial relationship between the debtor and creditor;
- The plausible defenses that the debtor may raise;
- The anticipated duration to conclude the process.
The order for payment procedure is ideal for claims of lesser value, spanning from several thousand euros to tens of thousands of euros, especially if a serious legal dispute is not anticipated. While this procedure is generally deemed to be prompt, it’s crucial to note that the debtor might unjustifiably contest the payment order, simply by dispatching a letter of dispute. In this event, the case is relegated to a court that will pass judgment on the merits, and the proceedings may last several months.
Summary procedures, on the contrary, are most suitable when the claim is unlikely to be the subject of any major legal disputes. This method is notably the most expeditious in terms of debt recovery, providing an enforceable title within six to eight weeks on average.
If the claim is subject to a serious dispute or is contentious, the creditor will need to resort to a full trial procedure on the merits that lasts way longer.
Once these procedures have been exhausted, and an enforceable decision has been secured, it then becomes necessary to consider the options for enforcement within France or Europe.
Here, the advice of a professional can prove invaluable in identifying the debtor’s assets that can be seized and in determining the most effective manner to proceed. If you need to recover a debt from a French debtor, MFL registered lawyers remains by your side to provide an accurate and appropriate advice regarding your situation. MFL will put you through the best lawyers to handle and secure your interests.