Out – of – court debt recovery

In the last article, we described the general process of out-of-court debt recovery. In this article, we would like to explain to you the way in which we will reach an out-of-court agreement with debtors.

Anyone who works with debtors on a regular basis knows that debtors will use all existing excuses to avoid fulfilling their obligations. As a rule, creditors do not have the possibility of verifying the veracity of the information that the debtors give them and are therefore often prone to give the debtors additional time to fulfill it. However, this procedure does not pay off for creditors and results in an approach to the deadline of limitation for receivables, which debtors know very well.

Out-of-court debt recovery: how does it work?

The most basic precondition for achieving a successful out-of-court settlement with the debtor is sufficient knowledge of the necessary information. Most debt collection companies do their job statistically which means that they determine preliminary enforceability, estimate the cost of litigation, and the anticipated defense against the debtor. Here, however, we come to the conclusion that such companies usually recover receivables only from debtors who either defend themselves insufficiently or not at all. This is mainly because the companies in question are composed of workers who do not have a legal background and are therefore unable to apply the necessary legal provisions or case law.  This ignorance of legal regulations, resp. their incorrect application represents half of the necessary information, which is necessary not only for out-of-court debt recovery but also for legal proceedings.

The second, in the case of out-of-court recovery, the more substantial half of the necessary information is knowledge of the debtor’s property and other circumstances. There are several freely accessible registers in which it is possible to find out certain information about the debtor. However, the problem with these registers is their scattering, outdated, cost, or unavailability on a wider scale.

For clarification, if you want to find out whether your debtor owns a property, you can do so on the Land Registry of the Slovak Republic. However, in addition to basic information about the debtors, you also need to know the cadastral area in which the property is to be located. There are currently more than 3 500 cadastral areas and each search is protected by a unique code and time stamp. This means that you cannot search for debtor information in bulk. Even if you decide to go through all the cadastral areas manually, it would take you several weeks. This information is only one of about 200, which we find out about the debtor before the first contact.

You might ask yourself what you would need such information for if the executor can provide it for you during the execution. However, this is only partially true. The moment you start debt collection, your debtor will do everything to ensure that you never see your finances again. In the case of larger receivables, the debtors “steal” the companies or rewrite the assets so that the executor has nothing to recover. This means that the debtor will no longer have the property they previously owned at the time of the final decision.

For this reason, it is necessary to know the property of the debtor as soon as possible, not only the current but also the past, as we then have the opportunity to oppose the legal acts that the debtor has done to cut creditors which is you. This will reverse the transfer of assets and avert the uncollectibility of your claim.

The biggest problem is that there is a large number of such registers while they are provided with technical protection that makes it impossible to find out all the necessary information. However, our company is the owner of a unique program, through which we find out all this information before the first contact of the debtor. We will find out what the debtor owns, whether they are subject of other disputes or executions, their contact information, property relations, as well as other information, which will give us a realistic idea of their solvency.

Based on this information, the debtor is unable to mislead us and out-of-court communication with knowledge of such information takes place at a completely different level than communication without knowledge of such information. Whoever has the information also has power over the situation and the ability to influence its course. The moment we get the impression that the debtor is misleading us, we file a lawsuit. In case the debtor begins to dispose of the property, which we will find out with our program in time, we will contradict the actions that led to the rewriting of the property and if the debtor decides to “steal” the company, we will initiate steps leading to their criminal prosecution and your receivables will be recovered.

 We realize that obtaining all such information without a specially designed program would not be possible and we would not be able to present ourselves with a success rate of up to 87 %. Fortunately for you, we have this program at our disposal, which was created exclusively for our company by our founder, and thus was adapted to focus on all the necessary information that must be obtained about the debtor to successfully recover your receivables. We know that investing in improving our services is the most important thing, and that makes us exceptional compared to other companies.

Based on this difficult-to-obtain information, we can agree with debtors much more effectively, also out of court. For you as a client, however, it is most important that we complete the entire debt collection process as quickly as possible, given the circumstances. If you are interested in our help, do not hesitate to contact us directly or via our contact forms.