Late payments due to COVID-19?
Debtor
Spain
Industry
Fashion & Retail
Amount recovered
€21.379,-
Situation
COVID-19 imposed many challenges for businesses across the globe. While many companies were struggling as a result of the pandemic, plenty of companies were already struggling before. With lockdown measures and restrictions, it became even more difficult for these companies to survive.
On one such occasion, we received a case against a Spanish debtor. The debtor refused to pay the outstanding amount even after multiple attempts of contact. Two demand letters were sent to the debtor, including e-mails, phone calls, and also an official registered letter. This letter included an official warning and consequences of legal actions if not paid.
Problem
According to the debtor, COVID had severely impacted the debtor's business. They were forced to shut their business and had no means to pay. However, when our lawyers at the Spanish Desk requested supporting documents to verify this, there appeared to be no evidence in any of their correspondence. The debtor was unable to provide any documents to justify the lack of payment.
Our approach
Our lawyers immediately knew that this was not a company that was genuinely impacted by the pandemic. That's why our lawyers at the Spanish Desk first tried to recover the claim amicably. After an official warning stating that our client would proceed with legal action, the debtor finally paid. We collected the entire principal amount including all the interests and all of the costs.
Get your free consultation today
Debtors can come up with various excuses to avoid paying their invoices. For some debtors, the COVID-19 pandemic was the perfect excuse to cover for their lack of payments. However, even in such cases, it is extremely important to request substantial evidence. If your debtor has left you in a similar situation, contact us today for your free consultation.
