The danger that the Liechtenstein creditors are facing when having outstanding liabilities not recovered from the debtors comes from the fact that it may eventually lead to the impossibility of paying its own debts. This is a vicious circle which needs to be avoided.
Many services and goods providers choose the prepayment method in order to avoid such situations or make sure valid contracts are signed before making a transaction.
What to do in case of debt issues
If facing a bad payer, the creditors are usually trying to settle the debt in an amicable procedure, by establishing with the legal entity a system of payments advantageous for both parties, usually through installments or through an advanced payment of a smaller amount from the claim.
If the term stated on an invoice is passed, the debtor is usually receiving a phone call requesting the payment, an email or a mail. A term, usually not higher that one month, is stated on the request.
If the above methods are not successful, the Liechtenstein creditors are hiring debt collection agencies or law firms in order to elaborate a plan for debt recovery and leave the process in their hands. The debt collection agencies or the law firms are advantageous to be hired mostly due to the specific payment conditions. Normally many of these agencies are being paid with a percentage from the recovered debt.
The legal procedure for debt recovery in Liechtenstein
In the beginning, the lawyers of the debt collection agency will try to recover the liabilities through an amicable procedure. They are sending written notifications related to the debts to the entity, try to contact it through the phone and try to reach a settlement. The possibility of facing a lawsuit is also presented. This way, many legal entities are accepting to pay the liabilities.
If all the above procedures are not having as a result the recovery of the outstanding liabilities, then the lawyers of the debt collection agency are starting the legal procedure in the specific Liechtenstein courts. It is not advisable to reach this point mostly because of the high amounts necessary to start the process, the fact that in the first instance the creditor is paying the court fees. Only if the procedure is successful, the debtor is enforced to pay the court fees and other procedures. Also the process of debt collection through the legal procedure may take years before it reaches a final decision.