Outstanding invoices can be a major problem for both businesses and individuals. If a debtor refuses to pay, legal assistance may be needed to collect the money. But what legal services are available, and what can they do? In this article, we discuss the roles of debt collection agencies, bailiffs, and lawyers, and explain when you specifically need a lawyer.
What kind of helpers are available in case of debt collection problems?
If you're having debt collection problems, you can contact various legal professionals. The choice depends on the severity of the problem and the legal steps required.
If you're having debt collection problems, you can contact various legal professionals. The choice depends on the severity of the problem and the legal steps required.
1. Collection agency
A debt collection agency is a commercial entity that attempts to collect outstanding debts on behalf of creditors. This is often done through letters, phone calls, and emails.
What can a debt collection agency do?
- Sending reminders and payment reminders
- Building pressure to enforce payment
- Drawing up a payment plan
What can't a debt collection agency do?
- Do not initiate legal proceedings
- Do not seize income or property
- Do not issue summonses
A debt collection agency is particularly useful for relatively simple and disputed claims. If a debtor continues to refuse to pay, further legal assistance is necessary.
2. Bailiff
A bailiff is an official, sworn in by the government, who is authorized to take legal action in debt collection.
What can a bailiff do?
- Issuing a summons (summoning the debtor to appear in court)
- Submitting payment orders
- Seize wages, bank accounts or assets
- Carrying out evictions in case of rent arrears
However, a bailiff can only take enforcement measures after a court judgment has been issued. Without a judgment, a bailiff cannot seize property or take enforcement measures.
3. Lawyer
In some cases, hiring a lawyer is necessary. A lawyer is a legal specialist who can assist you with complex debt collection cases, especially if a debtor is legally defending themselves.
What can a lawyer do?
- Taking legal action on disputed claims
- Representing creditors in legal proceedings
- Filing for bankruptcy against a defaulter
- Providing advice on contracts and legal risks
When is a Lawyer Required?
Some debt collection cases may only be handled by a lawyer. This includes:
- Claims above €25,000 : For civil proceedings in court, a lawyer is mandatory.
- Bankruptcy filing : Only a lawyer can file for bankruptcy of a debtor.
- Complex legal disputes : If the debtor mounts a legal defense and the case is substantively complex.
- Appeal and further appeal : When appealing against a court decision, a lawyer is necessary.
4. Legal expenses insurer
A legal expenses insurer offers legal assistance to policyholders with debt collection issues. This can be beneficial because you receive legal assistance at no extra cost, provided your policy covers debt collection matters.
What can a legal expenses insurer do?
- Providing legal advice on the best approach to debt collection
- Conduct negotiations with the debtor on behalf of the insured
- Hire a lawyer if necessary
- Reimburse certain legal costs
Legal expenses insurance can be a good choice if you regularly deal with debt collection cases and need legal assistance without unexpected costs.
Which Healthcare Provider Should You Choose?
- For small and undisputed claims : A debt collection agency can often exert sufficient pressure.
- In case of legal action and seizures : A bailiff is necessary if coercive measures are required.
- For complex, disputed or large claims : A lawyer is required to build a strong legal case.
Conclusion
In case of debt collection problems, various legal services are available. Debt collection agencies are suitable for simple claims, while a bailiff is required for legal enforcement measures. For large or legally complex cases, you should engage a lawyer. By choosing the right legal services, you increase your chances of successful collection.
