Overview
Obtaining a judicial judgment for a creditor doesn't automatically mean collecting the amount. The enforcement stage needs separate follow-up, and actual chances of collection depend more on the debtor's solvency and available assets than on the strength of the legal right alone.
We assess debtor solvency before recommending escalation to a costly formal process, since full litigation may not be economically worthwhile if the debtor is genuinely insolvent without assets to enforce against.
Regulatory Basis
Collection lawsuits fall under the Commercial Court Law, and are heard before the competent division based on the value of the debt claimed.
The judgment enforcement stage falls under applicable enforcement procedures, which allow the creditor to enforce against specific debtor assets once a final judgment is issued.
How We Collect Debts
We begin with an amicable demand through a formal notice giving the debtor an opportunity to pay before escalating, since many debtors prefer a quick settlement over facing formal judicial proceedings.
If the amicable demand doesn't succeed, we file a collection lawsuit before the commercial court, with ongoing assessment of the value in continuing the process against its cost.
Who Needs This Service
A company with an outstanding amount owed by a commercial customer or party that remains unpaid despite repeated amicable demands.
A company needing a realistic assessment of the value in litigating to collect a specific debt against the cost of the process and the debtor's actual solvency.
From our experience managing collection files, we find that acting quickly after the first missed payment directly affects the outcome, since a debtor missing payment for the first time typically responds faster to an early formal notice, while a debtor with multiple accumulated debts from different parties over months without any formal action becomes much harder to deal with.
Additional Considerations
If it becomes clear the debtor is generally distressed rather than struggling with one creditor alone, this connects with our bankruptcy, insolvency and restructuring service.
When collection escalates to full litigation, we coordinate directly with our litigation and advocacy team without transferring the file to an outside party unfamiliar with its history.
Common Questions
Is litigation always worthwhile to collect an overdue debt?
Not always. If the debtor is genuinely insolvent without assets to enforce against, full litigation may not be economically worthwhile, and we assess this specifically before recommending a path.
How long does collecting a debt through litigation take?
This depends on the dispute's complexity and the debtor's degree of cooperation, and we give a realistic estimate after assessing your specific file.