Due debts to collect? Faster recovery of receivables according to Romanian laws – payment order
If you have a debtor in Romanian, who didn’t pay his debt on time, (alongside the European Payment Order - if you are an EU citizen or EU based company), a legal mechanism available to you could also be the payment order.
This is a simplified, quick, and cost-effective legal mechanisms for debt recovery as an alternative to a common lawsuit.
You can use the payment order procedure for a debt which
- has a written ground
- is liquid – it consists in money payment or other goods with a determinable value in money
- and is due
This mechanism is preferred for recognized/uncontested debts (e.g partial payment, full or partial payment of interest or penalties, requesting an extension for payment, instalment plans, registering received invoices in accounting, and similar actions).
ADVANTAGES:
- In some cases, the debt is recovered even begore going to court.
The procedure must be preceded by a Summons to your debtor. By this mean you offer your debtor an additional 15 days to pay. The Summons also interrupts the statute of limitations. The debtor thus summoned can choose to pay, to prevent extra trial costs.
- The legal fee is a fixed amount - 200 RON: a common lawsuit would involve a debt-value based tax
- Only documents are allowed as evidence - no witnesses, interrogatories, or expert evidence - the parties are summoned according to urgent case provisions, ensuring speed.
If the debtor defends:
- And the defences are clearly unfounded – a payment order is issued.
- And the defences, which are not clearly unfounded, would require other evidence admissible in a common lawsuit – the creditor must initiate a common trail for the recovery.
- Simple presumption of debt recognition, if the debtor does not file a response or does not file it on time – the presumption may be enforced as such at the discretion of the court, which must consider all the case circumstances in this respect
- If the debtor doesn’t contest the debt - the payment order will be issued within a maximum of 45 days from the filing of the request (excluding procedural periods imposed by communications or other requests of the creditor).
- The payment order sets a specific payment term: a minimum of 10 and a maximum of 30 days from its communication to debtor.
- The payment order is enforceable from the moment it is communicated.
- The payment order annulment request, made by debtor within 10 days of its communication – does not suspend, by default, its execution. Suspension of execution can only be granted at the debtor's request, for valid reasons, after paying a bail set by the court.
- If the annulment request is rejected, the decision will be final, thus securing the execution.
Legal Pro Advisory offers you the necessary legal support in choosing and initiating an appropriate legal mechanism for efficient recovery of debts, after a careful evaluation of each case.
For details and support, do not hesitate to contact us.
