IBS Debt Collection includes the following steps in the standard process of collecting debt:
Our work system allows us to perform our activities in this debt recovery process in two distinct stages: (i) pre-litigation and (ii) litigation.
In this stage, we try to amicably determine debtors to pay the outstanding debts and as such to avoid burdening their financial situation. At the same time, in this stage we pursue recovery of the outstanding debts using the following methods: written notifications, telephone calls, mediation, negotiation, establishing and tracking subsequent payments after agreeing upon payment commitments, this stage providing a rate of success of over 70%.
the debtor being summoned before court by means of specific procedures. This action will continue by obtaining legal enforcement, consisting of an enforceable decision, followed by foreclosing the debtor by a bailiff from the IBS network.
Legal action will be taken depending on the material, functional and territorial competence of the court and in accordance with legal provisions in force.
PAYMENT ORDINANCE
Amongst the simplified procedures of the litigious stage we exemplify the payment ordinance as regulated by the Civil Procedure Code as a unique, derogating and fast method of debt collection. In order for the courts to admit and judge the claim regarding the issuing of a payment ordinance, the creditor must supply proof of his performing the mandatory, prior procedure of challenging the debtor.
The new procedure for the payment ordinance is applicable in the matter of certain, liquid and payable debts, resulting from payment obligations of cash sums which are a result of a civil contract, including contracts concluded between a professional and a contracting authority, made in writing or resulting from statute, rule or other written documents appropriated by the parties by means of affixing their signature or by any other means acknowledged by law.
The debtor, or creditor if the case be, may submit a request of annulment within 10 days of being handed or being informed about the payment ordinance against the issued payment ordinance, against the court decision to reject the demand for issuing said payment ordinance or against a partial payment ordinance. The demands for issuing a payment ordinance are taxed with the fixed amount of 200 lei.
In addition to the payment ordinance regulated by the Civil procedure code, the normative act stipulates the possibility of introducing a small claims procedure which applies to claims less than 10,000 lei in value, without taking into account interest rates, costs and other supplementary income. This type of procedure is launched by filing the request form and submitting or mailing it to the competent court of law, by mail or any other means which would ensure the form is received with confirmation.
COURT ACTION REGARDING CLAIMS
The claims court action or common law court action represents the type of court action that is not regulated along with the other simplified procedures, being regulated solely by the general norm of common law. The court claims action represents the debt collecting court procedure utilized should the submitting of a payment ordinance prove impossible. For this type of court action, there is no need for the debt to be certain, often times the debts themselves being contested by the debtor in regards to both their existence and their extent.
In order to perform a court action in the common law system, the prior procedure of direct reconciliation is required, by which the parties try to resolve the dispute amicably. In practice, this procedure may be extended for a longer duration. The legal action to claims can be contested by both appeal and recourse, available to both parties should the court decision be considered unfavorable. The tax for this type of procedure is calculated proportionally to the claimed debt, resulting in a greater financial effort compared to the simplified procedures previously mentioned.
INSOLVENCY PROCEDURE
At this stage of litigation, the insolvency procedure may be utilized (restructuring / bankruptcy) either instead of the payment ordinance if the conditions stipulated by legislation in force are met, either by proving insolvency as well as the other criteria necessary for this procedure to take effect. Within the legal procedure, the insolvency procedure may be utilized if: the amount of debt exceeds 40 000 RON, and launching this procedure by the creditors can only take place 60 days after the due date.
EUROPEAN PAYMENT ORDER
A situation that proves to be increasingly common amongst professionals refers to debt collection from countries members of the European Union by introducing a European Payment Oder. By standardizing procedures and the documentation needed for the European payment order, the costs associated with cross-border litigation are also reduced, creating a procedure that can be used in both civil and commercial law for uncontested debts (the European payment order cannot be utilized for fiscal, customs or administrative litigation).
In order to apply this procedure, the following conditions must be met:
(i) there must be a commercial or civil cross-border litigation;
(ii) the existence of a certain, payable debt upon taking court action (according to Art. 662 par. 3
The procedure for the European payment order is conditioned by exclusive use of the forms stipulated by Rule No. 1896 per 2006.
