Pavel Margarit & Associates

Romanian Law provides to each creditor alternative solutions in order to recover a claim/debt from the Romanian debtor, whether it is a Romanian Court action, such as a legal claim, payment ordinance, small claims, or other preliminary proceedings in debt recovery in Romania. A specialized lawyer in dispute resolution, litigation, debt recovery and enforcement proceedings in Romania can advise on the steps to be carried out in such debt recovery cases and can assist and represent the creditor before the Romanian competent court or before any natural or legal person in Romania to recover the debt. Pavel Margarit and Associates Romanian Law Firm advises to discuss with a specialized lawyer in order to recover your debt in Romania.

1. Preliminary proceedings for debt recovery in Romania

The creditor can recover a claim/ debt from her/his debtor in Romania without even suing the debtor.

In our experience, in Romania practice, in around 40% of such cases, the creditor manages to recover the debt after carrying out the preliminary debt recovery proceedings, the debtor preferring to execute the payment of the debt in order to avoid any additional costs with the proceedings before the Romanian Court.

During the stage of preliminary proceedings, the creditor, with the help of a litigation lawyer, may request the debtor to execute the payment by means of a notice through bailiff, demanding the debtor compensation for the late execution of the debtor’s obligation, if applicable.

A specialized lawyer in dispute resolution, litigation, debt recovery and enforcement proceedings in Romania can assist the creditor in negotiating with the debtor with the aim of debt recovery and proposing alternative solutions for the recovery of the debt, providing beneficial conditions for the debtor (eg payment of debt in installments), as well as the concluding any other payment commitments.

2. Legal claim to recover debts in Romania

If the claim is not recovered after carrying out the preliminary proceedings, the creditor may request the competent Romanian Court to obtain a judgment ruling the defendant to execute the payment of the debt.

The legal claim shall be carried out in accordance with the ordinary law procedure in Romania and shall be applicable to any dispute related to this legal matter in Romania. Such debt recovery legal claim will not be subject to the provisions of a special procedure, such as those set out in the following paragraphs. A litigation lawyer in Romania can follow all measures during the Romanin Court proceedings, the parties may administrate any necessary evidence and they may present their arguments both in writing and orally before the Romanian competent court.

3. Small claims procedure

In contrast with the legal claim procedure in Romania, simplified procedures, such as a Small claims procedure or the Payment Ordinance allow the creditors the possibility to recover their claims in Romania quicker and without incurring high costs.

By way of the Small claims procedure in Romania, the creditors can recover debts that do not exceed the amount of RON 10.000. When determining the amount of the claim, only the main claim will be taken into account, without the ancillary amounts, such as interest or stamp duty costs.

During the Small claims procedure in Romania, the evidence whose administration requires excessive costs with regard to the value of the request for the Small claims procedure cannot be accepted by the Romanian debt recovery Court of Law.

Should the creditor choose to recover her/his claim by means of this procedure, a preliminary procedure shall be mandatory to be undertaken by the creditor. Pavel, Margarit and Associates recommend the assistance of a specialized lawyer in dispute resolution, litigation, debt recovery and enforcement proceedings in Romania who will be able to prepare all the necessary steps in order to recover the outstanding amount from the Romanian debtor.

After the decision is ruled by the Romanian Court and the request of the creditor is admitted, the creditor may contact the bailiff in order to initiate the enforcement procedure in regards to the outstanding amount owed by the debtor based on the court decision that shall be enforceable by operation of law.

4. Payment Ordinance for debt recovery in Romania

The object of the Payment Ordinance in Romania cannot be an obligation other than the debtor’s obligation to execute a sum of money. Another special requirement is related to the creditor’s claim which must be certain (to be established by means of an enforceable title), liquid (its object to be determined or determinable) and due (the debtor’s obligation is outstanding or the debtor has lost the benefit of the term). The claim shall be identified by means of a document or according to a statute, regulation or any other document, acknowledged by the parties through signature or otherwise authorized by the law.

With regard to the preliminary procedure of the Payment Ordinance in Romania, the creditor shall send a notice through bailiff or by means of a letter with stated content and acknowledgment of receipt requesting the debtor to execute and pay the debt the outstanding amount within maximum 15 days since its receipt.

In case the creditor’s claim is granted, the court shall issue a Payment Ordinance that shall enforceable by operation of Romanian law and that will specify the outstanding amount and the payment term.

Additionally, the parties may conclude a settlement with regard to the amount of money owed by the debtor that shall be granted by the court by means of a final and enforceable judgment.

In conclusion, any outstanding amount can be claimed through the Payment Ordinance procedure in Romania, which can be executed by the creditor within maximum 30 days (the parties may derogate from this rule) after carrying out a brief and efficient procedure.

To this end, a specialized lawyer in dispute resolution, litigation, debt recovery and enforcement proceedings in Romania will be able to carefully analyze whether the conditions for the admissibility of the simplified procedures are met and can advise in the event of any complications during the proceedings due to the debtor’s reluctance to execute the payment or to conclude an agreement with the creditor.

5. Registration with the list of claims in the event that the insolvency proceedings are opened against the debtor in Romania

In case of recovery of a debt in Romania from an insolvent company, the provisions of Romanian Law no. 85/2014 on insolvency prevention and insolvency proceedings shall be applicable.

Once the insolvency proceedings have been issued by the specialized Court, any ongoing court proceedings and any enforcement proceedings against the Romania debtor company shall be suspended by operation of law.

At the same time, the creditors of the insolvent company shall become parties to the insolvency proceedings opened against the debtor.

During the insolvency proceedings, the judicial administrator shall verify each application for registration with the list of claims and shall send notice to all creditors by which they can oppose the decision to open the insolvency proceedings.

Upon the insolvency proceedings are finalized, the debtor’s assets shall be capitalized and the resulting amounts distributed to creditors according to the order of distribution of claims in accordance with the provisions of Law no. 85/2014.

Pavel, Margarit & Associates Romanian Law Firm recommend in case of debt recovery in Romania contacting a specialized lawyer in dispute resolution, litigation, debt recovery and enforcement proceedings in Romania who can provide you with legal advice, assistance and representation, both during preliminary proceedings and before the competent courts in accordance with the ordinary law procedure, as well as the simplified procedures, such as Small claims procedure and the Payment Ordinance or the insolvency proceedings in case of an insolvent or bankrupt debtor company in Romania.

Thus, a litigation lawyer specialized in debt recovery procedures in Romania will be able to represent you before the court, during the creditors’ meetings, during the procedures carried out by the judicial administrator / liquidator, as well as represent and advise you during the negotiations regarding any commitments or payment arrangements concluded with the debtor or any other procedures before the state authorities or any natural person or legal entity.

Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, offering top legal advice. The Romanian law firm clients are foreign and top local companies and high worth individuals. In 2021, the success stories of the Romanian Law Firm have brought recognition from the most prestigious international guides and publications. The firm was ranked second place in Romania by the Legal 500 publication. The Romanian law firm is also recognized by IFLR 1000 Financial and Corporate Guide 2021. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Margarit & Associates Romanian Law Firm can be found on the website www.avocatpavel.ro.