DEBT COLLECTION PROCESS

However, before starting a judicial debt collection, it is advisable to send a payment reminder to a debtor. Generally, there is a high probability that he will settle his debt to avoid a long and expensive court procedure and / or procedure performed by a notary public.

If a debtor does not pay his debt even within the given additional deadline, the creditor may submit a motion for enforcement to the notary public based on an invoice which is a trustworthy document.

If the public notary estimates that motion for execution is permitted and substantiated, he shall issue a writ of execution based on a trustworthy document and deliver it to the parties. Through this writ, the debtor will be asked once again to settle the debt which now includes the legal expenses within eight days after receipt of the writ.

If he still refuses to pay his debt, the debtor may file an objection against the writ of execution within the same period of eight days. The objection shall be submitted to the notary public who issued the writ of execution, and who then forwards the case to the competent court. From that moment on, the proceeding shall continue as a litigation proceeding in front of a court where both parties prove their allegations in order to succeed in the proceeding.

However, if after the above mentioned period of eight days after receipt of the writ of execution the debtor did not pay the debt or file an objection, the valid and enforceable writ of execution shall be submitted to the Financial Agency (FINA) which issues an order to the banks to seize and transfer the amount from debtor's account, without his consent.

Author: Silvija Žužić | Lawyer Croatia | Law office Rijeka, Krk