Debt Collection – CARDD

Debt Recovery Service

Why Debt Recovery?

Positive cash flow is essential for business continuity. Amidst numerous suppliers and clients, delays in payment or even non-payment of debts are common. It is unfair and inefficient for an entrepreneur to spend time and creativity on collecting unpaid bills. However, the failure to collect debts can have negative, even irreparable effects. Wise entrepreneurs recognize the need to outsource this activity, as it requires expertise and the involvement of specialized professionals in debt recovery.

Debt recovery can be carried out through two methods: either through amicable (extrajudicial) negotiations or through court proceedings and judicial executors. The essential point is that the debt must be recovered, so the methods and negotiation strategies with debtors must be carefully chosen.

There are specific risks in debt recovery, some legal (prescription) and others conventional (debtor’s opposition). To avoid the risk of losing the debt or forfeiting legal rights, you need specialized assistance from debt recovery professionals.

Debt recovery strategies must be adapted based on specific criteria such as the debtor’s profile, the debt amount, the debtor’s attitude, their solvency, the nature of the debt, and other factors. CARDD has the methodology, tactics, and determination to carry out efficient recoveries from the most difficult debtors.

Optimizing Company Cash Flow

Cash flow is the lifeblood of any business. It represents the difference between the cash inflows and outflows of a company over a financial period. Inflows come from company receipts from clients or debtors, while outflows include payments for salaries, rents, services, materials, etc. To achieve positive cash flow, any company needs to consistently collect revenues; however, real life shows that debt recoveries are also necessary, and it is wise for entrepreneurs to preventively use due diligence services instead of facing non-payment from debtors.

It’s essential to avoid circumstances that hinder enforcement actions. If prescription has intervened, a payment term has been granted, or the creditor has not provided a guarantee in the case of provisional execution orders, enforcement cannot proceed. Even if enforcement has started, its natural course can be influenced by circumstances that delay or extinguish it before the debtor fulfills their obligation: the existence of common property, postponement of execution, suspension of forced execution, extinction of execution, etc.

Moreover, the enforcement court can limit execution to certain assets if it considers it excessive.

Negotiating for or with You

Our lawyers take a professional approach to extrajudicial negotiations on behalf of clients, potentially saving you many unwanted costs.

Our mutual primary interest is the swift recovery of the debt and avoiding a lengthy judicial process. Winning negotiations and amicably recovering the debt can be a reality with the right lawyers.

Payment Demands

We initiate and assist the procedure according to Article 1014 of the Civil Procedure Code to quickly safeguard your debt rights.

Payment Orders

We initiate and assist the payment order procedure to prevent a full common law process and recover certain, liquid, and due debts through court.

If your debtor does not respond positively to negotiations or the payment demand, our lawyers will file a payment order to recover the debt and will be present in court with the mandatory response.

After the payment order is resolved by the court, depending on your or the debtor’s attitude, our lawyers can file an appeal, an appeal for annulment, or an execution contest, as appropriate.

Soft Collection

CARDD has long-term partnerships for outsourcing debt collection activities, optimizing costs and time for amicable (soft) collection. This can typically be achieved in 30 or 50 days, so that contractual relationships with business partners are not affected, thus enhancing cash flow efficiency.

National Coverage

CARDD ensures national coverage for debt recovery and enforcement services, covering all appeal courts in Romania with its network of judicial executors.

Advantages of Debt Recovery through CARDD

Debt recovery is a complex and delicate procedure with multiple steps to ensure success with the debtor. Beyond these legal steps, there is specialized know-how that CARDD possesses.

It’s always preferable for the debt to be recovered without going to court.

CARDD’s over 10 years of experience have helped refine our working methods with debtors and courts down to the smallest detail.

All team members guide their activities by our internal code of good practices, adopted by CARDD from the beginning and perfected throughout its activity.

Here are the advantages of working with CARDD, both for debt recovery and for implementing prevention strategies:

Debt Recovery

Challenges in Debt Recovery

Debt recovery can be a complex and challenging process due to various legal and conventional factors. To avoid losing the debt or forfeiting legal rights, specialized assistance from debt recovery professionals is crucial.

Tailored Debt Recovery Strategies

Effective debt recovery strategies must be tailored to specific criteria, such as the debtor’s profile, debt value, debtor’s attitude, debtor’s solvency, nature of the debt, and other relevant factors. The Assistance and Recovery Center for Damages and Losses carefully considers these criteria to plan the optimal recovery strategy.

Optimizing Cash Flow for Businesses

Cash flow represents the difference between a company’s cash inflows and outflows during a financial year. Inflows are generated from customer or debtor payments, while outflows are payments for salaries, rent, services, materials, etc. Cash flow is the lifeblood of any business. To maintain a positive cash flow, companies require consistent revenue collection. Debt recovery plays a vital role in ensuring long-term positive cash flow. Effective debt recovery optimizes a company’s cash inflows, improving its financial health. Entrepreneurs should proactively seek debt recovery services, not just when facing non-payment issues, but also as a preventive measure to allow debt collectors to conduct due diligence and prevent potential conflicts.

There are multiple inconveniences in debt recovery, some legal (statute of limitations) and others conventional (debtor opposition). To avoid losing the debt or forfeiting legal rights, you will need specialized assistance from debt recovery professionals.

Debt recovery strategies must be adapted according to specific criteria, such as the debtor’s profile, the value of the debt, the debtor’s attitude, the debtor’s solvency, the nature of the debt and other criteria. These are carefully considered by the Assistance and Recovery Center for Damages and Losses in order to plan the optimal recovery strategy.

We optimize companies’ cash flow

Cash flow represents the difference between a company’s cash inflows and outflows during a financial year. Inflows are generated from customer or debtor payments, while outflows are payments for salaries, rent, services, materials etc. Thus, cash flow is the lifeblood of any business. To have a positive cash flow, any company needs to collect constant revenue; debt recovery intervenes and ensures that this constant remains positive in the long term. Thus, debt recovery optimizes a company’s cash inflows. Entrepreneurs should seek these services not only when they have non-payment situations from debtors, but also beforehand, allowing debt collectors to perform due diligence services, preventing tense situations.

It is necessary that there are no circumstances that impede the enforcement of the execution. If the statute of limitations has intervened, a payment term has been granted, or the creditor has not posted the security for judgments with provisional enforcement, enforcement cannot be initiated. On the other hand, there are situations in which enforcement has been initiated, but its normal course is influenced by circumstances that delay or even extinguish it before the debtor fulfills his obligation: the existence of joint ownership, the postponement of enforcement, the suspension of enforcement, the lapse of enforcement, etc.

Also, when the creditor pursues several movable or immovable assets at the same time whose value is clearly excessive in relation to the debt to be satisfied, the enforcement court, at the request of the debtor and after summoning the creditor, may restrict the enforcement to certain assets.

Negotiations Our team of lawyers strictly adheres to the obligations of good faith, confidentiality and transparency, maintaining a professional attitude in negotiations conducted on behalf of clients. The negotiation stage is important, being an extrajudicial phase, which can save the client from the costs incurred with a legal process.

Our main interest is the swift recovery of the debt and avoiding a lengthy legal process on behalf of the client. Thus, we strategically pursue winning negotiations and amicable recovery of the debt.

Demand for Payment The demand for payment is the official notification sent to the debtor for the return of the debt to the creditor. The demand is communicated either by the bailiff or directly by registered mail with return receipt. The demand informs the debtor of their obligation to pay the debt, according to art. 1014 of the Civil Procedure Code, within 15 days of receipt.

The demand letter interrupts the statute of limitations, thus we can safeguard the right to the debt very quickly. It is important to mention that failure to fulfill the pre-litigation procedure leads to the inadmissibility of the payment order.

Payment Order This procedure aims to prevent a full-fledged common law lawsuit and is specifically designed for debt recovery through the courts. It is a contentious procedure applicable to certain, liquid, and exigible debts.

Our lawyers will introduce the payment order to recover the debt if your debtor did not respond positively to negotiations or the demand for payment. The order is heard in court with the parties present, where our lawyer will represent your case. The procedure is adversarial, and a defense is mandatory. If no defense is filed, it can be considered an admission of the claims. However, if a defense was not introduced due to unavoidable reasons, the debtor can request reinstatement.

Depending on the attitude of you or the debtor after the court’s decision on the payment order, an appeal, an annulment appeal, or an enforcement appeal may be filed.

Soft Collection The Assistance and Recovery Center for Damages and Losses has long-standing partnerships for outsourcing debt collection activities, thus optimizing costs and time for amicable debt recovery.

Amicable debt recovery (soft collection) is usually completed within 30 or 50 days, so as not to affect the contractual relationships you have with your business partners, thus streamlining cash flow.

National Coverage The Assistance and Recovery Center for Damages and Losses ensures national coverage for debt collection and enforcement services, covering all courts of appeal in Romania and having a national network of bailiffs. As a rule, our team works without upfront fees.

Advantages of Debt Recovery with the Assistance and Recovery Center for Damages and Losses Debt recovery is a complex procedure with multiple steps that must be followed to ensure success. Beyond these steps, there are strategies and legal norms that support the recovery of commercial debts.

Therefore, it is important to resort to specialists with experience to maximize your chances of success. Likewise, it is preferable for your debt recovery to be done without going to court. The amicable route is preferable to legal recovery, the latter being more costly and time-consuming.

Our experience of over 11 years in the field of debt recovery has helped us acquire in-depth knowledge of judicial and extrajudicial procedures and refine our working methods down to the smallest detail.

Furthermore, all team members are guided in their activities by the Internal Code of Good Practices adopted by the Assistance and Recovery Center for Damages and Losses from the beginning of its operations and perfected throughout its existence.

Here are the advantages of working with the Assistance and Recovery Center for Damages and Losses, both for debt recovery and for implementing preventive strategies:

Extensive Experience in Debt Recovery

Long-term experience in the field brings knowledge and the successful resolution of hundreds of cases, each with its particularities. The Center for Assistance and Recovery of Compensations and Damages aims to achieve the best results for its clients, as their satisfaction guarantees the quality of our services.

Team members are thoroughly familiar with all necessary procedures for optimal case resolution and will maintain constant communication with you throughout the process.

Emphasis on Soft Collection, Beneficial for Both Parties

Cash flow is vital for any company, and in Romania, payment delays are the main problem faced by most companies. Therefore, it is important and particularly useful to have the debt recovery service outsourced to a team with the necessary expertise.

In the initial phase, we will make every effort to recover commercial debts amicably. This approach benefits both you and your debtors and will be carried out very professionally to maintain long-term collaboration relationships.

CARDD Handles Debt Recovery Nationwide and Internationally

Over time, the Center for Assistance and Recovery of Compensations and Damages has developed a national network of professionals from all legal professions. Thus, we can represent you before courts and companies in any locality without you having to travel!

We understand that time is the most precious resource, so we will always seek to minimize the effort required from you.

Professionals Ready to Solve Your Problem, Regardless of Its Complexity

There are debt collection situations where more difficult problems arise and situations that can be resolved immediately, amicably. Regardless of your case, our team is ready to help, possessing all the theoretical and practical knowledge necessary to handle even the most complex cases.

Do you need help?

Our team specializes in efficiently managing the debt recovery process. We provide comprehensive support, from detailed analysis and assessment of debts to implementing the necessary legal measures for their recovery. We are prepared to handle the most complex cases, using advanced strategies to ensure fast and efficient debt recovery.