Debt Collection

Debt Collection

In cases where individuals or companies are unable or unwilling to repay debts owed to third parties, then the creditor might seek legal advice to initiate proceedings in order to recover the debts in question.

Out-of- Court Negotiations:

In cases where the debtor is unwilling and / or negligent to repay the debt owed, before the matter is referred to the competent Court, efforts must be made in order to recover the debt through out-of-court negotiations.

Specifically, the creditor and / or his lawyer should communicate with the debtor and then proceed with the preparation of a demand of payment letter. In case of negative or no response then the creditor can proceed with a legal action for the recovery of the debt.

Court proceedings:

According to the Rules of Civil Procedure, any action before the Court begins with the filing of a Lawsuit.

The debtor must, within ten days from the filing of the Lawsuit, make sure that he submits an Appearance Note. In case the debtor does not submit an Appearance Note within the aforementioned time limit, the creditor may request a decision from the Court due to the debtor’s failure to register an appearance. Usually, the procedure for issuing a Decision can take up to two months from the date of registration of the Lawsuit.

In the event that the debtor files an Appeal Note, he will also have to file a Defense Report against the creditor’s claim, as well as have the option to file a Counterclaim (if any). Following instructions from the Court, a date is set for a hearing at which the parties present their case and the Court issues its Judgment based on the balance of probabilities.

Measures for the Execution of the Judgment:

Following a court decision against the debtor and in case of the debtor’s failure to comply with it, the creditor and his lawyers can proceed with enforcement measures of the decision.

i. Seizure of movable property

The specific procedure concerns the execution of the decision on the debtor’s movable property requesting its sale.

ii. Seizure at a third party

This procedure aims to find out if there is money in a bank account or in the possession of a third party and by requesting that these amounts be paid directly to the creditor to eliminate the debtor’s debt.

iii. Application for examination of the financial status of the debtor

Submit an application to the Court and a request for examination of the debtor’s financial status in order to issue an order to pay the creditor the amount due through monthly installments.

In case of non-payment of these installments, an application is made to deceive the creditor with the risk of imposing an additional fine or imprisonment of the debtor.

iv. Bankruptcy

Although not considered an enforcement measure, the main purpose is to cause the debtor to go bankrupt, which can have significant adverse effects on the debtor, on his financial activity including the prohibition of holding / issuing checks and the loss of his real estate.

For any further information and/or clarifications please contact us at or contact number +35722817711.

Please note that this newsletter is produced for clearly informative purposes and under no circumstance shall be construed as professional advice. Each case shall be treated in a unique way and tailored advice shall be sought.