Debt Collection in Macedonia - English-Speaking Local Law Firm
Debt Collection MacedoniaUpdated on Tuesday 04th January 2022
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If outstanding liabilities of certain corporate bodies or individuals cannot be recovered in Macedonia the best step is hiring a collection agency or a law firm familiar with the process of debt collection. The creditors can choose from one of the three types of debt collection methods available in Macedonia we are about to explain in this article. Before that, we recommend you get in touch with our lawyers in Macedonia who can offer legal advice and assistance when dealing with debt collection. On the other hand, foreigners who want to start a business in Macedonia can rely on the support offered by our experts.
Ways through which debt collection is made in Macedonia
As mentioned above, there are three ways through which debt collection is carried out in Macedonia, as follows:
- The third-party debt collection, which is an entity independent from the credit company;
- A subsidiary of the credit company opened with the purpose of debt recovery;
- The debt purchase agencies are buying a part of the debt and trying to recover it from the debtor.
The creditors are advised to use the help of these types of agencies as the payment is made only if the debt is recovered and consists in a part of that debt.
Usually, two methods are chosen in order to recover the debt: through the amicable procedure and through litigation. For more details, you can discuss with one of our attorneys in Macedonia and find out the best solution for recovering the debts.
Methods for debt recovery in Macedonia
The amicable procedure is more advantageous as it consists in trying to recover the debt through all the friendly and approachable methods. Here are a few steps involved:
- The debt recovery agency or the law firm is contacting the debtor through the phone, fax, email, or post and tries to convince it to pay the liability.
- A written notification is delivered to the debtor containing the name and address of the creditor, details regarding the outstanding amount, the ways of depositing the claim, and the consequence of not delivering the amount of money on time (facing legal actions).
- At this stage it is possible to pay the outstanding liability through installments if the debtor agrees. In some cases, the debtor may agree to receive a smaller amount from the debt with the condition of immediate payment.
If the above steps are failing, the litigation process is initiated. In this stage, the parties involved can be represented by a Macedonian lawyer with experience in this field.
Litigation process for recovering the debts
If the amicable procedure is not a solution for debt recovery in Macedonia, the creditors can commence the litigation procedure. For this, the creditor needs to deliver all the compulsory documents for opening the process, such as a valid contract signed between the parties, the list with all the due invoices, a statement with the current financial relationship between the parties, any proof that can be brought in order to certify the relationship between the creditor and the debtor.
In the first stage, the judge will gather all the information and will decide when to appoint a hearing where both parties to be present. After hearing the parties, the judge will issue a decision which will be delivered in writing to both parties. This decision is enforceable and must be put into practice immediately. Here is what happens next:
- The expenses related to the process are input to the debtor, thus adding to the already outstanding liability in case the decisions are in the favor of the creditor.
- The decision taken by the court is put into practice by the bailiff which will seize the debtor’s assets and auction those in order to cover the claims if it’s necessary.
- If the debtor doesn’t have sufficient assets to cover the liabilities, the process of insolvency can be initiated. In this case, an insolvent entity cannot perform any commercial activity in the future until the claims are settled.
It is quite recommended to hire a Macedonian lawyer to handle the situation you are facing, whether you are the creditor or the debtor. Feel free to discuss all the legal aspects with one of our specialists and see how you can be helped.
How can a debt collection lawyer in Macedonia help you?
Our debt collection lawyers in Macedonia know how to help their clients get their money back. When a creditor uses our legal services, as a natural or legal person, we treat the case with the utmost care and offer the best solutions as soon as we analyze the documentation. Here's how a debt collection lawyer in Macedonia can help you if you turn to him/her:
- We will contact the debtor to remind him of the payments he has to make. He will also be informed of the payment deadline.
- The amicable way of resolving debt collection cases involves getting in touch with the debtor and even changing the payment conditions. These can be beneficial for extinguishing the conflict.
- We will assist our clients throughout the money recovery process, being available for any kind of information and assistance.
The debt recovery strategy is customized for each client. A debt collection lawyer in Macedonia will know what solutions to propose, depending on the case presented and its severity. If the mediation is not a good solution or if the debtor does not respond to this solution then things can get complicated and get the attention of the court. Whatever the situation, it is advisable to get in touch with a lawyer in Macedonia and make sure that you are legally represented in this process.
Debt collection consultation offered by our experts
Recovering money from service providers can be a real challenge for those who face such problems. Business owners need to make sure that the company has a steady stream of money and that they can consider different payments. When they are delayed, it is obvious that certain activities in the company may be affected.
In such a situation it is recommended to seek specialist help from a lawyer in Macedonia. He/she will know how to handle the case presented, using the documentation provided by the parties involved, evidence, and statements that could be used in adopting the best solution in debt recovery. It is important to note that before initiating any proceedings, a lawyer in Macedonia can access the debtor's financial information and find out if the indebted firm is having problems in this regard. It can thus be discovered if the respective company has gone into insolvency and therefore can no longer fulfill its financial obligations.
Debt collection consultation is the first step you need when you are interested in debt recovery.
Macedonia, an optimal destination for foreign investment
Macedonia is a favorite destination of foreign investors who want economic stability and a favorable climate for business development. An experienced and multilingual workforce, advantageous taxation system, and incentives for foreign investors are among Macedonia's strengths. Let's take a look at some statistics that show the economic direction of Macedonia:
- According to information for 2020, Macedonia has recorded more than USD 7.3 billion in total FDI.
- The 2020 Doing Business report ranked Macedonia 111th out of 190 of the world's economies in terms of climate and business conditions.
- The simple procedures for registering a company in Macedonia are a huge advantage for foreigners who choose this country for portfolio development.
Interested in more information about debt collection in Macedonia? We invite you to contact our law firm in Macedonia and benefit from legal advice.