Debt Collection in Liechtenstein - Quick and Effective Services
Debt Collection in LiechtensteinUpdated on Wednesday 21st April 2021
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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.
Below, our lawyers in Liechtenstein explain how debts can be recovered in the Principality. Moreover, we can offer professional services that help both creditors and debtors reach an amicable agreement in order to avoid lengthy and complicated procedures.
Types of debt collection procedures in Liechtenstein
Collecting a debt has serious implications on the party requesting the money and the debtor which is why it is important to reach a solution that enables them both to resolve such an issue.
There are two ways through which a debt can be settled in Liechtenstein:
- in court.
The first procedure is always preferred, however, not all things can go as desired, and some cases can end up in a Liechtenstein court of law.
Our lawyers are at your service with information on how debts can be extinguished in the Principality.
Who can handle debt collection procedures in the Principality?
When dealing with a debt, a company can request the services of a specialized agency or a law firm in Liechtenstein, however, the choice should be made in accordance with who the debtor is.
In the case of utility companies that need to have residential consumers pay outstanding bills, agencies are a preferred choice as the dunning letter will usually determine the latter to make the payments.
When companies need to collect money from other businesses, law firms can be a better choice, as certain legal aspects need to be considered and having a lawyer specialized in the Civil and Commercial Law can lead to a more effective solution.
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.
The amicable debt recovery procedure in Liechtenstein
In most cases, the debt collection procedure will begin in an amicable manner in order to a quick settlement to be reached. The amicable procedure usually implies the following steps:
- the debtor is first notified about the amount to pay in accordance with the documents proving the debt;
- phone calls and e-mails can be sent to the debtor in order to remind him/her about the debt;
- the parties can reach an agreement on how and the timeframe during which the payment can be made;
- during the procedure, a debt collection agency or lawyer can ensure an effective communication between the parties.
As a matter of fact, communication is one of the main aspects when seeking to recover a debt in an amicable manner, as it can ensure a fair treatment of the debtor who can be more willing to cooperate. Also, it can also ensure a means of discussion when a debtor who wants to repay any outstanding amount of money could not reach the creditor.
With the help of our law firm in Liechtenstein any debt collection matter can be handled with diplomacy and understanding so that the amicable procedure can be chosen by the debtor.
If you decide to use our services, we will need the details of the debtor, in order assess the situation and provide you with a plan that suits you, which will after be presented to the debtor.
If you need information on the best way to collect a debt, our litigation attorneys in Liechtenstein can advise in accordance with the specifics of your case.
Court proceedings for collecting a debt in Liechtenstein
Court proceedings in case of debt collection can be started before or after any attempt to recover an outstanding amount of money amicably, depending on the situation. However, it is important to note that in this case the presence of a Liechtenstein lawyer is required to present the case.
Based on the evidence submitted by the creditor, the court will summon the debtor who also need to provide evidence on why he could not pay the due amount of money. Then, the court will make a decision that will need to be enforced in order to collect the money, but also to pay any fees related to the delay of the payments.
There are also cases, especially in the case of companies, that may lead to the declaration of insolvency or even liquidation of a business, case in which additional procedures need to be completed.
You can obtain more information on the court proceedings related to debt recovery from our lawyers in Liechtenstein.
Time limits for starting court debt recovery procedures
When dealing with court proceedings related to debt recovery in Liechtenstein, there are certain time limits that must be respected when filing a claim in accordance with the Civil Law. These are:
- time limits range between 3 and 10 years depending on the nature of the case;
- in the case of debt recovery claims, the maximum time limit is 3 years from the date the debt was recorded;
- compensations for the failure of providing financial services have a time limit of 10 years;
- a lawsuit can take up to 12 months when it comes to less serious offenses.
Our lawyers in Liechtenstein can offer more details about debt collection in this country, so don't hesitate to contact us.