Debt Collection in Luxembourg
Debt Collection in LuxembourgUpdated on Thursday 14th April 2016
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Doing business in Luxembourg has many advantages for investors, but sometimes companies and individuals engaged in business relations must go through the less pleasant step of recovering debts from their business partners who did not honor the necessary payments.
Our lawyers in Luxembourg can help in a number of debt recovery procedures, especially the amicable debt collection phase, or the pre-court phase. To make sure that you do not have to go to court, our Luxembourg attorneys will take any measure to ensure that the debt is recovered in a short amount of time and with the least amount of legal implications as possible.
The debt collection process
Any debt collection claim needs to take into consideration the specific and unique situation that has led to the debt accumulation and also take special consideration in understanding both the claimer and the debtor.
A debt collection claim starts after a client sends the necessary information about the debtor and the supporting documentation that will provide all the necessary details referring to the payment, the conditions in which the business partnership took place and other details. Our lawyers in Luxembourg will start by sending a demand letter or debt collection letter, to persuade the debtor to make the necessary payments. This is the amicable phase of the recovery and if the debtor’s response is positive, we will make sure to follow through and see that the payment is made.
If the debtor does not offer a response, usually within 60 days, our attorneys in Luxembourg can commence any necessary legal action. The complaint is served to the debtor and our lawyers in Luxembourg will see that the trial date is set and the necessary arrangements are made to enforce the final court decision.
Other information about debt collection in Luxembourg
Foreign investors in Luxembourg should be very well informed before doing business with other legal entities. Scams or other problems when engaging in business relationships can be avoided by performing a company due diligence: verifying that the company is legitimate. Our attorneys in Luxembourg can help you, if you want to obtain information about a company.
Business contracts should contain an arbitration clause - this is an alternative conflict resolution method and it is preferred compared to suing the debtor.
You can contact our law firm in Luxembourg, if you want to know more about debt collection or need any credit management services.