Debt collection proceedings is the only way to recover outstanding amounts when dealing with bad taxpayers. In Italy, as in any other countries, one has the possibility of running into a company or individual failing to comply with their financial obligations which is why debt collection proceedings have been put in place in order to facilitate the recovery of any financial claims. There are two phases to the debt collection procedure in Italy: the first one is the extrajudicial phase, which is also known as the amicable debt recovery procedure, and the second one is the judicial phase which implies going to trial before an Italian court of justice. An amicable settlement is always preferred to the judicial phase because it is less time and money consuming.
Amicable debt recovery in Italy often implies recurring to the services of debt collection agencies. The standard procedure in amicable debt collection procedures begins by demanding the debtor to pay the outstanding amount. It is very important for the demand to be made both in written and by telephone. If the creditor receives no answer from the debtor, they can request the assistance of Italian lawyers who will draft an injunction letter. The letter will act as an out-of-court notice which informs the debtor they must pay the outstanding amount. The letter must contain:
The debtor is also informed the amount must be paid within 7 or 10 days from receiving the letter.
If the owned amount could not be recovered through an amicable procedure, the second step will be to initiate legal proceedings against the debtor. All legal actions in case of debt collection are carried out by an Italian court of justice. Judicial debt collection procedures are usually handled by an Italian attorney who will submit all the relevant documents and file a petition with the court. After a few days, the court will issue an order for the debtor to pay. The order has a 40-day validity period. If the debtor does not pay, they will be issued with an enforceable decree for the execution of movable or immovable assets, such as real estate property, in order to recover the amount owed.
If you need legal representation in debt collection procedures you can contact our law firm in Italy.