Debt Recovery in Operating Leasing in Romania. Dr. Radu Pavel, Speaker at the Conference Organized by Universul Juridic

Dr. Radu Pavel on Debt Recovery in Operating Leasing in Romania: Between the Contractual Clause and the Proven Damage. Recent Case Law

Dr. Radu Pavel, Attorney-at-Law, was a speaker at the National Leasing Conference in Romania, whose general theme was “Leasing under Judicial Scrutiny. From Challenged Clauses to Final Rulings”, organized by the “Acad. Andrei Rădulescu” Institute for Legal Research of the Romanian Academy, the Universul Juridic Editorial Group and its main partner, Avestis International.

The National Leasing Conference is an event dedicated to discussing the legal aspects and legal practice concerning leasing agreements in Romania. The event brings together lawyers, judges, legal advisers, insolvency practitioners, bailiffs and industry specialists.

During the conference, Dr. Radu Pavel, Attorney-at-Law, Managing Partner of Pavel, Mărgărit & Associates Romanian Law Firm, addressed the topic “Debt Recovery in Operating Leasing in Romania: Between the Contractual Clause and the Proven Damage. Recent Case Law.”

Insolvency Lawyer in Romania. How Insolvency Changes the Rules Applicable to Leasing Agreements

During the same conference, Dr. Nicoleta Mirela Nastasie, Attorney-at-Law, Senior Associate at Pavel, Mărgărit & Associates, addressed the topic “Operating Lease or Rental? Debt Recovery and Asset Control in Insolvency Proceedings under Article 123 paragraphs (1) and (12) of Law No. 85/2014.”

This topic remains relevant in a context where, for an increasing number of companies in Romania, the opening of insolvency proceedings raises a series of legal issues regarding the continuation or termination of the leasing agreement, recovery of the asset and enforcement of the lessor’s claims.

Article 123 paragraph (1) of Law No. 85/2014 provides for the continuation of ongoing agreements upon the opening of insolvency proceedings, while paragraph (12) establishes a special regime for financial leasing. In such situations, an insolvency lawyer in Romania may analyze the nature of the agreement, the rights of the parties, the treatment of claims and the available options for recovering or protecting the asset subject to the leasing agreement.

“It is important to understand that insolvency does not automatically result in the termination of the leasing agreement, although it may change the manner in which the agreement is performed. In this context, legal analysis becomes essential,” stated Dr. Nicoleta Mirela Nastasie, Attorney-at-Law, Senior Associate at Pavel, Mărgărit & Associates.

Operating Lease or Financial Lease in Romania? Differences Regarding Debt Recovery and Control over the Asset in Insolvency Proceedings

Upon the opening of insolvency proceedings in Romania, the distinction between operating leasing and financial leasing becomes important, as the applicable legal regime influences the manner in which claims may be recovered and the asset protected.

Pursuant to Article 123 of Law No. 85/2014, ongoing agreements are, as a general rule, maintained. However, financial leasing is subject to special rules regarding the continuation or termination of the agreement.

As regards operating leasing, the analysis must take into account the specific legal nature of the agreement, its clauses and the lessor’s rights over the asset.

Leasing Lawyer in Romania: What Is Operating Leasing and When Is Legal Assistance Necessary?

In a context where an increasing number of individuals have sought legal assistance in this field, the topic addressed during the National Leasing Conference, organized by Universul Juridic, remains relevant.

Government Ordinance No. 51/1997 regulates leasing transactions in Romania whereby one party, referred to as the lessor or financier, transfers, for a fixed period, the right to use an asset owned by it to another party, referred to as the lessee, in exchange for a periodic payment, namely the lease payment. Unfair terms in leasing agreements may give rise to disputes between the parties.

At the end of the contractual period, the lessee may, under the conditions provided by the agreement, opt to purchase the asset, extend the leasing agreement or terminate the contractual relationship.

The lease payment represents:

• in the case of financial leasing, the portion of the entry value of the asset and the leasing interest. The leasing interest represents the average bank interest rate on the Romanian market;
• in the case of operating leasing, the depreciation amount calculated in accordance with the applicable Romanian legislation and a profit margin agreed by the contracting parties.

Where insolvency proceedings are opened against the lessee in Romania, the treatment of outstanding and current lease payments must be analyzed. In addition to the payment regime applicable to such amounts, both the manner in which the agreement continues to produce legal effects and the financier’s rights over the asset become relevant.

Dr. Radu Pavel on How a Debt Recovery Lawyer in Romania Can Assist in Operating Leasing Agreements

During his presentation, Dr. Radu Pavel, Attorney-at-Law, referred to recent practice, including the role that a leasing lawyer in Romania may have both at the preventive stage and in contentious matters. For example, the lawyer may analyze unfair terms in leasing agreements.

“In the case of claims arising from operating leasing agreements, early legal intervention may be essential for the proper assessment of contractual obligations and of the damage incurred. A lawyer may analyze the documentation, establish the debt recovery strategy and protect the creditor’s interests both during the amicable stage and in the event of litigation,” stated Dr. Radu Pavel, Attorney-at-Law, Managing Partner of Pavel, Mărgărit & Associates Romanian Law Firm.

Leasing Lawyer in Romania. Why Is Consulting a Lawyer Important for Debt Recovery in Operating Leasing?

Thus, a leasing lawyer in Romania may assist individuals for preventive purposes, including the review and negotiation of the leasing agreement — duration, lease payments, guarantees, terms of use, insurance, maintenance, penalties and liability — as well as in contentious matters, including debt recovery and the protection of the client’s interests in the event of a dispute.

A leasing lawyer in Romania may also provide assistance regarding car leasing calculations, as well as in addressing certain issues related to financial leasing agreements or leasing transactions involving vehicles and car fleets. As regards unfair terms in leasing agreements, such clauses may be challenged before the Romanian courts.

Debt Recovery Lawyer in Romania. Unpaid Lease Payment: When May the Financier Terminate the Agreement and Recover the Claim?

Also during the National Leasing Conference, Dr. Radu Pavel, Attorney-at-Law, highlighted the role that a debt recovery lawyer in Romania may play, from recovering unpaid amounts (claims) to identifying the most legally effective solutions.

An important legal provision regarding debt recovery in Romania is also Article 15 of Government Ordinance No. 51/1997. Pursuant to this provision, where the lessee fails to perform its obligation to pay the lease payment for two consecutive months, the financier is entitled to terminate the leasing agreement, while the lessee is required to return the asset and pay the outstanding lease payments together with damages, unless the agreement provides otherwise.

The purpose of the National Leasing Conference is to analyze current legal issues in the Romanian leasing sector by reference to legal practice.

The Importance of a Legal Strategy in Recovering Claims Arising from Leasing Agreements in Romania

The conference took place at the Conference Hall of the Romanian Academy in Bucharest, Romania, on 3 June 2026 and was organized into three sections over a period of seven hours. During his presentation, Dr. Radu Pavel, Attorney-at-Law, addressed both debt recovery and the interpretation of contractual clauses, as well as the manner in which Romanian courts resolve this type of litigation.

Another topic concerned the legal challenges that may arise in operating leasing in Romania and their impact on leasing companies and the Romanian business environment. During his presentation, the Managing Partner of Pavel, Mărgărit & Associates emphasized the importance of an effective legal strategy for protecting the interests of the parties involved, both in relation to leasing for individuals and operating leasing for legal entities in Romania.

Likewise, Dr. Nicoleta Mirela Nastasie, Attorney-at-Law, drew attention to the manner in which the legal strategy is structured. In practice, when payment difficulties or insolvency arise, the recovery of claims and the protection of assets involved in the leasing agreement depend on the strategy adopted.

Dr. Radu Pavel, Attorney-at-Law: Debt Recovery in Operating Leasing in Romania — Between the Contractual Clause and the Proven Damage

Another important aspect highlighted by Dr. Radu Pavel, Attorney-at-Law, is that debt recovery in Romania is not limited to merely invoking contractual clauses. Where litigation arises, it becomes essential to analyze how the obligations undertaken under the agreement relate to the damage actually incurred and to the evidence supporting such damage.

The mere existence of a contractual clause establishing certain amounts due does not eliminate the need for a legal assessment of the extent of the damage, the causal link between the failure to perform the contractual obligations and the loss incurred, as well as the documents by means of which such damage may be proven before the Romanian courts.

The conference highlighted the importance of a rigorous legal approach both during the drafting and negotiation of leasing agreements for individuals in Romania and operating leasing agreements for legal entities in Romania, as well as in managing situations involving non-performance and debt recovery.

By reference to recent Romanian case law, the discussions emphasized the need for a careful analysis of contractual clauses, the damage actually incurred and the obligations undertaken by the parties. In this context, the involvement of a leasing lawyer in Romania or a debt recovery lawyer in Romania may contribute to preventing litigation, protecting the client’s interests and identifying the most effective legal solutions in the event of a dispute.

In conclusion, the matters discussed during the National Leasing Conference, organized by Universul Juridic, are relevant both for leasing agreements concluded with individuals in Romania and for operating leasing transactions involving legal entities in Romania, particularly where difficulties arise in relation to the performance of contractual obligations, payment of lease instalments, debt recovery or litigation.

Furthermore, where insolvency proceedings are opened in Romania, it becomes essential to analyze the manner in which the leasing agreement continues to produce legal effects. Such analysis may be carried out with the assistance of an insolvency lawyer in Romania.

Pavel, Mărgărit & Associates Romanian Law Firm is one of the leading law firms providing high-quality legal services in Romania. The firm’s clients include major multinational and Romanian companies. In 2026, the firm’s success stories earned international recognition from some of the most prestigious legal directories and specialist publications.

Thus, Pavel, Mărgărit & Associates ranked 3rd in Romania among business law firms with the most relevant expertise, according to the ranking prepared by Legal 500. The law firm is also internationally recognized by the IFLR1000 Financial and Corporate 2026 guide. Furthermore, Pavel, Mărgărit & Associates is the only Romanian law firm recommended by the London-based international directory Global Law Experts in the Dispute Resolution practice area. All relevant information regarding Pavel, Mărgărit & Associates Romanian Law Firm is available at www.avocatpavel.com.