Debt collection

In today’s world, debt collection is often an unavoidable part of people-to-people relationships and requires well thought out tactics for successful debt collection: not only a legal but also a financial plan for debtors to successfully repay creditors. We actively encourage our clients to be financially responsible.

Creditor representation

We pursue creditors’ claims in court and out of court, based on a thorough case analysis that allows us to choose the most appropriate approach, including:

  • verification of the debtor’s assets, financial position and solvency: This includes an examination of transaction accounts, real estate, vehicles, registered work machinery and equipment, securities, business interests and other assets of significant value.
  • preparation of a legal opinion on the possibilities and means of enforcing or securing the claim.
  • drafting of pre-enforcement notices: We proactively inform the debtor of their obligation to pay the claim, set a reasonable time limit for payment and provide detailed information on the consequences of non-payment.
  • negotiation and drafting of agreements: We negotiate to agree the best terms and conditions and additional time for the fulfilment of obligations. This is followed by the preparation of an appropriate debt repayment and performance agreement.
  • securing the performance of obligations: To ensure that the rights of the parties are adequately protected, we use legal instruments to provide appropriate security, such as an enforceable instrument of direct enforceability, a lien on movable property, a mortgage, a surety, a bill of exchange, a bank guarantee and an enforcement draft.
  • drafting and filing an application for enforcement on the basis of an authentic instrument or an enforceable instrument, and managing the enforcement procedure.
  • drafting and filing a response to the debtor’s objection to the proposed enforcement.
  • representation in court: We represent the creditor in court following the debtor’s objection to the enforcement order.
  • drafting and filing of an action for the enforcement of a monetary or non-monetary claim: By filing an action and representing the creditor in court, we enable the creditor to obtain an enforceable instrument for further recovery proceedings if the creditor does not have either an enforceable instrument or an authentic instrument in their possession.
  • drafting and filing of interim and preliminary injunctions to secure a monetary or non-monetary claim: In order to avoid the risk of default by the debtor, we prepare for our clients the appropriate security for their claims by means of interim and preliminary injunctions, provided that the legal requirements for this are met.
  • monitoring compliance: We regularly monitor compliance and, in the event of a breach or default, take appropriate steps to enforce security to ensure that the creditor’s obligations are met.
  • reporting the debtor to the inspection authorities and initiating criminal proceedings: If the debtor’s behaviour meets the legal criteria for a minor offence or even a criminal offence, the debtor is reported to the competent inspection authorities and the public prosecutor’s office.

We achieve an efficient outcome to the recovery process through a strategy designed to use all available means of enforcement, while ensuring full legal protection of our clients’ interests and rights. We closely monitor the movement of assets and potential tactics of debtors, which allows us to be successful in the process of collecting debts owed to our clients.

Debtor representation

In situations where debtors are faced with premature or unjustified claims by creditors, we carefully consider all the relevant circumstances of the case. Depending on the means by which the claim is to be enforced, we:

  • prepare a legal opinion on the objections to the claim: demonstrating the unsoundness of the claim or the irregularity of its enforcement,
  • draft a negative response to the pre-enforcement notice,
  • draft and file an objection against the enforcement order,
  • draft and file a response to the action and represent the client in the subsequent judicial proceedings,
  • we propose and represent the debtor in counter enforcement proceedings against the creditor.

Our representation of debtors is based on the use of all legally permissible objections and remedies to prevent unjustified debt collection.

Krištof & Brečko Advokatura