Debt Collection Greece
Debt collection in Greece is difficult indeed. The country and its economic activity have lost every ounce of financial credibility. Another factor complicating the matter is the different cultural background.
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Demanding payment
A very efficient way of putting pressure on your Greek customer is by telephoning and by sending a letter of demand. By regularly contacting the customer, he or she will realize that you are determined to get your claim paid. However, if you do not get any kind of reaction from the opposing party, you can hand your claims over to Collections in Europe for recovery.
Dealing with collections in Greece
A. Extrajudicial collections
During the extrajudicial stage, a letter of demand will be sent to the debtor by a Collections in Europe lawyer. In this letter, a detailed analysis of the total amount outstanding (including the interest and all the additional costs) will be displayed. If we do not receive payment after our demand letters and several attempts by phone, then legal proceedings will be initiated.
Settlement
However, if initiating proceedings before the competent Court is likely to cost more time and money, an alternative method to have your claim satisfied is to try to agree with the opposing party on a settlement plan. Reaching the most beneficial arrangement will be achieved by means of a negotiating process.
B. Court-ordered collections
Obtaining a Court’s decision is an effective and forceful tool to use against your debtor. Depending on whether the claim is disputed or not, legal action can be initiated based either on European Legislation (via the European Order of Payment) or on national legislation (depending on rules of competency).
Attachment
If after obtaining the Court’s decision your debtor still does not pay, proceeding with the execution of the Court’s decision is the next step. Compulsory enforcement will take place by utilizing all possible enforcement measures against the debtor’s movable or immovable property.
Pre and post bankruptcy proceedings
Recently, a new Greek law called the Rehabilitation Procedure was introduced. Key elements of the post-bankruptcy proceedings are the re-organization of the business and its liquidation. The main goal of this new pre-bankruptcy stage is to rescue the company, restore its credibility, and reach an agreement with the creditors.
Advice about Debt Collection in Greece
Would you like more information about collections or bringing legal action in Greece? Fill out the contact form or call us: +44 (0)20 3808 5878.
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See also: Debt Collection Greece on the website of Bierens Debt Recovery Lawyers.
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