The Legal issues on collection of outstanding debt include institutes such as bank credit, documentary encashment and procedures for recovery in general. The legal framework in this area is contained mainly in the Bulgarian Commercial Act, in the Act on Payment Services and Payment Systems, Bank Regulation № 3. The General Rules for Debt Collection adopted by the Commerce Chamber in Paris are applicable as well.
All procedures for debt collection start with a debt claim. Banking and documentary collection of debts are exclusively bank transactions and can be concluded only with banks as cashing entities.
The Collection contract is a contract by which the Bank undertakes on behalf of the originator to collect his monetary claim or perform another cash collection action. The contract is informal and is signed on the initiative of the creditor, which is the originator. By filling out the collection instruction form, the requirements for which are set out in Regulation 3 of the National Bank, the originator makes an offer to the bank for the conclusion of the contract. The form must include the originator's and the payer´s bank, respectively, the bank through which will the relevant documents will be advanced for payment or acceptance, the amount that is to be collected; list of the relevant documents, specification of the related costs, and the conditions under which the documents must be accepted, identification of the measures in the event of non-payment, non-acceptance by the payer or failure to comply with any other instructions. Increasing the debt collection of a company is an important step towards the improvement of its financial situation and future development. In times of severe economic crisis and strict restrictions on the granting of bank credits, our customers need to find quick and effective procedures, in order without unnecessary expenses to collect their claims. Law firm Ruskov & Coll. can address these needs by offering you contracts for out-of-court debt collection, and if and when necessary: readiness to legally represent you against your unfair trading partners in Germany and Bulgaria.
The procedure of extrajudicial debt recovery, together with the legal assistance of an experienced lawyer can strikes the balance between competent protection of your rights and interests, and early and efficient collection of debts. You can save time and money, and in this way - future loss for your business. Statistics show that between 30 and 50% of all cases are solved at this pre-trial stage without resorting to cumbersome and wasteful litigation. The procedure itself begins with the filing of a claim.
We are your Lawyers for out-of-court and judicial debt collection in Germany and Bulgaria. Our services in this area include:
- Review of the credit situation of your trading partners
- Review and protection against unfounded debt claims
- Credit securities by drafting contractual clauses for all legal guarantees
- Conducting negotiations and out-of-court agreements
- Measures for property protection
- Recognition of foreign judicial decisions and measures of enforcement