Debt collection in Romania

International debt collection in Romania

When dealing with debt recovery in Romania, you will be confronted with different trading traditions and customs than those you are used to. Moreover, legislation differs in Romania while language and culture may act as a barrier as well. This can make debt recovery in Romania to be a complicated and time-consuming process. When hiring our debt collection agency in Romania, our debt collection specialists and Romanian lawyers can help you retrieve the payment you are entitled to.

Debt collection in Romania

Romania is one of the fastest-growing economies in Europe. The country's exports have risen sharply in recent years. Despite the strict rules regarding late payments, it often happens that invoices are not paid on time. A delay of more than 25 days is very common. It is often the large multinationals that pay late. In general, the small and medium enterprises in Romania are better payers.

Romanian lawyer in your country

For fast and effective debt recovery in Romania, it is best to contact our debt collection specialists and Romanian lawyers. They have extensive knowledge and experience with the laws and regulations in Romania. As they collect in their native language, our debt collection agency in Romania has the resources for effective debt recovery.

Debt collection procedure in Romania

The collection process of our debt collection agency in Romania can be divided into two phases. In the extrajudicial phase, we collect without the intervention of the court, in the judicial phase we do involve the court to get your Romanian debtor to pay. Because we are a law firm, we can assist you in both phases.

Extrajudicial debt collection in Romania

Our starting point is to always start the collection procedure in the extrajudicial phase. In this phase, we try to avoid the intervention of the court. We contact your Romanian debtor to ensure that your debtor pays. In the extrajudicial phase we have the following possibilities:

Written demand letters and phone calls

We call your debtor and we send a written reminder asking the debtor to pay. Your debtor will then be given several days to make a payment. In certain cases, we may also talk to your debtor face to face.

Requesting seizure of assets

If you have an outstanding claim, you can apply for a request to seize the assets of your debtor's movable and immovable property in Romania. This can only be done if legal proceedings to obtain an enforceable title have already been started. Under the same conditions, a creditor can also request to seize your debtor's receivables, securities, and intangible assets.

Announcing legal proceedings

If your debtor refuses to pay in the extrajudicial phase, we can go to court in consultation with you. For this purpose, we do a credit check and analyse your debtor's financial situation. This enables us to better assess your debtor's financial situation and determine whether legal proceedings are worthwhile. In addition, we will always let you know in advance what the possible costs are, and we will only start after receiving your permission.

Judicial debt collection in Romania

Would you like to start legal collection proceedings against your Romanian debtor? If so, the first question is in which country should you take legal action: in your country or in Romania? This depends on the competent court, i.e. the court that is competent to rule on your debt collection case.

In your general terms and conditions, you can make agreements about the competent court in the event of a (payment) conflict. This is also called choice of forum. Have no agreements been made? Then the main rule is that the court in the country of the defendant has jurisdiction. In this case the Romanian court. You then must go to Romania to follow legal proceedings there.

Furthermore, the main rule is that the law of the country of the seller or service provider applies. In this case, the law of your country applies. We then get this difficult situation where the Romanian court must judge the case based on the law of your country. A legal system he does not know. This is not a desirable situation, which is why our advice is to make agreements about this in your general terms and conditions. In addition, you can also agree that you can litigate in your own country, should a conflict arise.

Debt collection laws in Romania

A judicial collection procedure in Romania can often take a long time. Our Romanian lawyers can advise you on the best legal procedure in your situation.

Small claims procedure (Procedura privind cereri cu valoare redusă)

Although this goes against our advice, you can conduct this procedure without a lawyer. You can start this procedure for claims with a principal amount of up to 10,000 Romanian RON (approximately €2,200). To do so, you will need to fill in a form with case details and send it to the court. Your debtor will then receive a form in which he can provide proof to the contrary. On average, the court will rule after 90 days. In addition to the written documentation, the court can also use other forms of evidence, such as calling witnesses or external experts. However, it is a requirement that the costs are not disproportionate.

Payment order procedure (Procedura somaţiei de platā)

For only 40 euros you can start an order for payment procedure with a lawyer at the Romanian court. This is the most effective method that results in a court decision that is enforceable within three months (this is not always guaranteed but referenced by law). For this procedure, there are no restrictions on the amount of the principal sum. However, it only applies to monetary claims that are arising out of a written agreement.

Ordinary civil proceedings

If the agreement on which your claim is based is not documented in writing formally, it cannot be dealt with by order for payment proceedings (exceptions based on interpretation can be found). Therefore, your claim must proceed in an ordinary civil procedure.

International collection laws

In addition to Romanian collection laws, there are also a few European measures that can be used if your customer refuses to pay. For the European Union, it is important to stimulate trade between European countries. Therefore, complicated procedures are unwanted. In addition to the regular procedures, there are two alternative procedures that can be used for foreign claims between two EU countries: the European Payment Order Procedure and the Small Claims Procedure.

Both procedures are relatively fast and inexpensive. A standard form must be completed and sent to the competent court. If you have not agreed on anything, this is usually the court in the defendant's country. The court then deals with the collection case and makes a judgment.

The Small Claims Procedure is only suitable for small claims up to € 5,000. The European Payment Order only applies to undisputed claims.

Litigation in your own country

Have you agreed in the general terms and conditions that the court in your country has jurisdiction? Then legal proceedings can also be started in your country. Depending on your specific situation, our Romanian lawyers will look at what is most beneficial for your organisation. If we start legal proceedings in your country against your Romanian debtor, we can start ordinary civil proceedings. Both parties will be heard, after which the court will make a judgment.

Executing judgments in Romania

If a verdict has been obtained in your country against a Romanian debtor, it has yet to be executed in Romania. All verdicts obtained in EU member states are also recognised in other EU countries. For the execution of a judgment in Romania, your court issues a certificate. This is then sent to the bailiff in Romania together with the judgment. The bailiff can then set to work immediately to ensure that the judgment is executed in Romania.

Limitation period in Romania

An outstanding invoice cannot be collected forever. An invoice can become time-barred. Once the statute of limitations for your invoice has expired, you can no longer enforce payment of your invoice through the courts. It is therefore important to keep a close eye on this limitation period.

For business claims to which Romanian law applies, there is generally a statute of limitations of 3 years. This period starts from the moment the claim has become due and payable. For example, when the payment term has expired.

Suppose you deliver a batch of clothing to a customer. On 1 April 2017 you send the corresponding invoice, with a payment term of 30 days. However, your customer does not pay. The due date of the invoice is 1 May 2017. From this moment on, the limitation period of 3 years starts to run. On 1 May 2020, your invoice is therefore time-barred.

Exceptions to the limitation period

The limitation period of 3 years applies to normal claims. Please note that the limitation period is different for some claims. For example, transport law throughout Europe has a limitation period of 1 year.

Preventing prescription of your Romanian invoice

You can avoid prescription of your invoice by interrupting the prescription period. By interrupting the statute of limitations, the limitation period is stopped and starts to run again. In Romania the statute of limitations can be interrupted in the following ways:

• By acknowledging the debtor that there is an outstanding debt.
• At the start of legal proceedings.
• When the debtor is declared to be in default.

Legal areas for debt collection in Romania

Our debt collection agency in Romanian has been active for several years. During this time, we have helped many companies all over the world with their debt collection business in Romania, and also assisted several Romanian companies with all kinds of debt collection cases in various areas of law:

• Transport
• Buying and Selling
• Construction law
• Rental and leasing
• Agency and distribution agreement
• Damages and unlawful acts

National coverage

Is your debtor located in Bucharest, Constanța, or Cluj? We can assist you throughout Romania. For successful debt recovery in Romania, you can simply transfer your case online. Our debt collection agency in Romanian will then get straight to work.

More than a debt collection agency

If you are looking for a debt collection agency, you are actually better off with a debt collection lawyer. Our Romanian collection lawyers have more resources than a collection agency. Moreover, they work faster and are also more successful. And that is beneficial for your organisation, as you will quickly have your money in your bank account.

No Win No Fee debt collection

During the extrajudicial phase, we work based on the No Win, No Fee principle. If we do not collect, then you pay no legal fee. You only pay €165 for administrative costs. After all, an unpaid invoice causes enough frustration. We think it would be unfair if you were to be faced with all sorts of additional fees.

You only pay a fee if we can collect the claim. We try to recover this fee from the debtor as much as possible. Therefore, a successful collection case will cost you almost nothing. That is what we call justice, as you will receive exactly what you are entitled to.

Our Romanian specialists

Do you have an outstanding invoice with a Romanian debtor who has not paid? Or do you have another conflict with your customer? Our debt collection agency in Romania will be happy to help you solve your payment conflict. Please feel free to contact us for more information.