Debt collection is one of the key competencies at Inlegis Law Services. We are focused on effective B2B debt collection. Recovering your claims with the support of professional proxy will bring several benefits:
- Time saving,
- Collection cost saving,
- Proper selection of course of action,
- Selection of valid authorities, court, bailiff,
- More severe approach from the debtor.
Amicable debt collection
In our work, we can often face a situation when the creditor asks for our help after several months of ineffective collection using own resources. In many cases, the debtor, who was passive in the past, contacts professionals, agrees on a repay arrangement and begins the payments. Why the debt collection conduct by Inlegis Legal Services is more efficient? We may list a several reasons:
- Inlegis uses special Skip techniques, that means research of all active debtor’s addresses and other contact details,
- Participation of professional proxy legitimizes the proceedings and sends a message to the debtor that this case will be taken seriously,
- Debtor can act differently when we recognize the debt collection company as a respected, successful and consistent brand,
- Inlegis debt collectors are using an effective negotiating skill.
Operations during amicable debt collection
When preparing an amicable debt collection, the first action is always a sending of request of payment. It should motivate the debtor to undertake actions in order to repay the debt, like money transfer, contacting the Law firm or creditor. Secondly, sending a request of payment fulfils the legal obligation required to resolve the issue in amicably before directing the matter to the court.
For the evidence reasons, the request is sent via registered letter, not always with an acknowledgement of recipe. There is no need in resending the letter. Inlegis Law Services sends the request even if it was already done by credit. In many cases the status of debt collection company is enough to successfully close the case.
If the contact with debtor is impossible, Inlegis begins the skip tracing – research of debtor’s active contact details, like residence address, company registration address, phone numbers, email addresses etc.
After the preparation phase, Inlegis tries to contact the debtor. It is mainly done via phone. The main goal of the contact is to persuade debtor to pay the debt. Collector from Inlegis will contact debtor until the required effect is achieved. The effect is a one-time repay of the full amount. If this is not possible, the next step will be to agree on a repay schedule and debt recognition. To achieve the required goal, various negotiation techniques are used. Often, the whole process is initiated by the entry payment (creditability payment) – even a small amount.
The risk of court proceedings is one of the basic sanctions used by debt collector during the amicable process. Threatening with sanctions that are not planned to be implemented should be avoided. Lack of consistency can cause an unwanted raise of debtor’s confidence who can use this situation to avoid payments.
Directing the claim for payment to the court is a basic tool used in order to force debt collection. Bailiff is the only authority allowed to take over debtor’s assets. These proceedings can only start after a court decision.
At this stage of the proceedings, time is of the essence. Court proceedings usually are time consuming, what can lead into further financial issues of debtor or can allow the debtor to get rid of his/her assets.
Assumption that the fastest way to establish an enforceable title is the simplified electronical proceedings (EPU) in the court in Lublin is wrong in many cases. The operations of the court are not consistent – the periods of waiting were often extended. The proceedings are longer when the debtor decides to object the request for payment. In many cases, the claims at the traditional court are more efficient. An experienced proxy is the best person to decide on the method.
Quite often the request of payment is enough to motivate debtor to pay. In other cases, establishing of enforceable title and bailiff proceedings are required.
Debt Collection by bailiffs
A court bailiff is the only authority enabled to seizure the assets of debtor. It’s essential to select a proper bailiff office.
Currently, the creditor has a free selection option. There are many bailiff’s offices on the current market. In theory, they all have the same competences and responsibilities. In real life, the approach undertaken by the offices is very different. Mainly when it comes to the dates of actions and fieldwork.
As it was already mentioned, the speed of action is essential for the effective proceedings. Each month of waiting is making the situation worse. A quick-working bailiff can surprise even a debtor who purposedly avoids meeting the creditor’s claims. Fieldwork seems to be even more important. This way the bailiff can track and block debtor’s assets other than money available on the bank account. Investigation for the specific, saleable assets, burden of the every-day actions aimed to impede business operations, psychological effect of visits in the office or home are the key factors in putting pressure on the debtor. Unfortunately, most of the bailiffs are not willing to perform mentioned activities.
The task of Inlegis Legal Services on this stage of proceedings is the selection of most efficient office, matching debtor’s place of residence, showing which actions should be taken and supervision over the correctness of proceedings.
Debt Collection Office
Inlegis Legal Services is a debt collection company specialized in B2B cases. We can offer a comprehensive service covering end to end collection process, including amicable collection, bailiff execution and actions against 3rd party debtors.
As an efficient company we hire amicable debt collectors and lawyers. We cooperate with legal services companies across the whole country. Inlegis Legal Services has a network of closely collaborating bailiff’s offices.
Operations of our company are comprehensive and are aimed to work on behalf of creditor. The key differences between our work and individual work of creditor are standardization, professionalism, defined workplan and complexity.
B2B debt collection
Inlegis Legal services is specialized in B2B debt collection – where both creditor and debtor are business entities. This is dedicated mainly for:
- Service providers
- Vendors of materials and media
B2B debt collection is different from the general debt collection at several levels. The proceedings are more individualized and leaded by commercial courts. There is a difference in number of the proceedings requested by one creditor and in the final values of the debt.
Inlegis is ready to service the cases of complex debts, where debt of one person meets the threshold 1500 – 50000 PLN.
Debt collection in the criminal prosecution
In some justified cases it is possible to launch a proceeding ending in criminal prosecution of the debtor. The first case is fraud. We can discuss it when debtor was aware from the very beginning that he/she will not be able to meet the creditors requests, for instance: he never wanted to, or he considered this as an option. This can be proven if on the day of creating the debt the debtor was already insolvent – he was applicable for bankruptcy or there were other debt collecting proceedings against him.
Second common crime is avoiding the payment. This is when the debtor tries to reduce his wealth against the creditor by donations, selling assets, pays one debt but ignores the others.
During the criminal prosecution against debtors, law enforcement authorities remain passive. Police and prosecutors will try to cancel the proceedings. Inlegis enables the prosecution by reporting suspicion of a criminal offence, objecting the cancellation decisions, submitting subsidiary indictment, providing evidence and supporting indictments in the court.
The most desired effect is obviously the suspended sentence combined with the obligation to compensate for the prejudice. If the debtor continues to avoid payments, court will cancel the suspension.
3rd party debt collection
Debt collection is not always limited to the entity that made the financial commitment. It is also possible to launch the proceedings against 3rd party entities or person or assets, for example:
- Against board members of limited liability company according to the act 299
- Against guarantors
- Against debtor’s spouse
- Proceedings to remove community property for a debtor’s spouse
- Actio Pauliana against a buyer of an asset that was sold to harm the creditor
Debt collection at the expense of debtor
In the proceedings against business entity, a possibility to transfer the expenses of debt collection at the debtor occurs. This is allowed due to the act from 8th of March 2013, about acting against overused delays in business transactions. Thanks to the compensation for the costs of debt collection, debtor is obliged to cover all the expenses of the amicable proceedings, at least a major part of it. The expenses related to the legal advisor acting at court on behalf of creditor, shall be covered by debtor based on separate legislation.
Thanks to the actual use of benefit of creditor, Inlegis Legal Services can reduce the costs of debt collection process. Usually, the parties agree on a success fee, however, when possible, this does not lower the main amount the creditor claims.
Debt Collection Wroclaw
The headquarter of Inlegis Legal Services is situated in Wroclaw. It is natural that this is the area where we have the strongest capabilities. It is due to the market knowledge, processes related to the regional courts and personal relations with court bailiffs.
Wroclaw, however, is not the only area of our operations. Significant cities are also Warsaw, Lodz, Cracow, Silesian agglomeration (Katowice, Gliwice, Rybnik) and Tricity.