What is the difference between judicial debt collection and extrajudicial debt collection?

Extrajudicial debt collection is the practice finalized in stimulating the debtor to amicably regulate their obligation, through epistolary and verbal solicitation, and also through direct contact with the concerned party. Judicial debt collection is the process based on certified documentation, and asset liquidity and the collectability of each debt supported by various procedural formalities set by the current legislation, culminating in the submission to distrain of goods, personalty and real-estate, belonging to the debtor, in order to meet the requirements to satisfy the claim.

How long does it take to settle a debt collection claim?

Usually within 30 working days. The time incurred for a debt collection claim depends on various factors, for example, the traceability of the debtor or the concession of an extended payment.

In the case of an uncollectable bad debt, is a final report issued?

In the case that the extrajudicial intervention of debt collection be unfruitful, a report will be issued, indicating the motivations that determined the debt uncollectable. For certain types of debts, this report could be useful as a documentation for a tax deduction for the unfulfilled debt recovery.

Do your agents always follow up with a visit to the debtor's residence?

The visit to the debtor's residence (habitation or company headquarters), through collection agents or the area authorized debt recovery agency takes place only should the mandatary retain that it to be indispensable in order to obtain a positive resolution to the claim.

In the case that the debtor settles the debt directly with the creditor will there still be a payment charge required?

There is an agreed compensation for commission in the case that the debtor directly settles his position with the creditor, either through monetary payment (or through the issue of titles) or in the case of the restitution of goods.

What if the debtor doesn't pay in the "extrajudicial" stage, will the judicial procedure of debt recovery begin ?

Debt recovery in the judicial stage will only start with the consent of the creditor, to whom the relative costs will be charged, pre-emptively quantified by the debt recovery agency, in addition to the agreed compensation for commission, applied only in the case of a positive result of the procedure. The costs to begin the judicial procedure will be charged only to the creditor in the case of unfruitfulness.

Can a claim be entrusted to a lawyer and be managed contemporaneously by a debt recovery agency?

Absolutely not! Intervention on behalf of the debt recovery agency, can be requested before being passed on to a law office or at the end of the judicial stage that has proved unfruitful or partially unfruitful.

What if the debtor is willing to pay an inferior sum to the amount owed or to pay through an extended payment plan?

The debt recovery agency cannot settle with a lesser payment, if not previously authorized by the creditor. Extended payment requests, on behalf of the debtor, that exceed 60 days from the date that the claim is placed, must be accepted by the creditor. This procedure is carried out also in the case that the debtor proposes to settle the debt through the issue of titles (for example, promissory notes).

How is interest charged to the debtor calculated?

The interest requested to the debtor is calculated based on Italian Decree n. 231 dated October 9, 2002 "delayed payment in commercial transactions".

Are extrajudicial processes of debt recovery the same internationally?

For most foreign countries, the extrajudicial debt recovery procedure is the same as in Italy.