A failure to settle obligations promptly has become a common problem in economic relations. Debt recovery activity should be undertaken as rapidly as possible in order to increase the opportunity for recovery of amounts due, before the debtor suffers a loss of financial flow or the statute of limitation applies.
REMEMBER: According to the articles in force, if you allow the statute of limitations to take effect on an amount due, the debtor may evade the fulfillment of the provision by the raising of the statute of limitations, even if the financial situation allows the repayment of the debt.
There are tools enabling a creditor to interrupt the course of the statute of limitations; after each interruption the statute of limitations begins anew.
Several means of interrupting the statute of limitations exist.
1. The taking of action before a court or other body formed to hear cases or enforce claims of a given type, e.g.:
It should be remembered that interruption of the course of the statute of limitations through action before a court does not occur if it transpires from articles of adjective law that this is ineffective (e.g. withdrawal of a claim on account of the non-removal of formal deficiencies).
2. Commencement of mediation.
3. Recognition of the claim by the debtor – if the debtor signs a 'declaration of the recognition of a debt’ the course of the statute of limitations is interrupted, while this document also enables the taking of possible judicial action in less costly and more rapid warrant proceedings.
In each country the period of the statute of limitations is different and defined by articles in force locally.
Contact us – we will determine on the basis of an initial verification the potential for the conduct of debt recovery / legal activities in the case in question.