Best practices in judicial collection
Judicial collection is sometimes necessary to recover a debt.
It is used as a last resort when you have exhausted all amicable procedures available to you.
It’s not an easy decision to go through the legal collection process.
It often marks the end of the amicable procedure.
This type of decision is not to be taken lightly.
It is therefore essential for the company managing the judicial recovery procedure to make a few checks beforehand.
Before considering legal action
As a specialist as a company specializing in debt collectionwe are committed to providing our customers with the best possible advice before initiating legal legal collection.
Ainsi, avant toute démarche, nous réalisons quelques vérifications essentielles.
Check the debtor’s solvency
Check the debtor’s solvency, especially if it’s a company.
This check is essential.
Unfortunately, it can happen that the company is insolvent.
The decision whether or not to initiate proceedings will then depend on the amount of the claim(s). .
A compulsory execution procedure is not advisable if the creditworthiness index is poor, in order to limit unnecessary costs. At SSP Collect, we carry out systematic credit checks before initiating legal collection proceedings.
Gathering evidence of non-payment
Before initiating proceedings, we check with the creditor to ensure that we have all the documents documents proving the existence of the claim.
Dans ce cas, toute pièce ou élément sera utile : devis, factures, bons de commande, contrats, bons de livraisons signés, etc.
These documents will serve as factual elements that we can present during the procedure to justify the recourse and support your legal recovery action. This support is provided by our dedicated department, with a view to adapting the legal procedure at a later stage.
Is there a dispute with the debtor?
It may happen that your debtor fails to pay his bill on a contentious issue..
Il est alors essentiel de vérifier sa justification et la vôtre.
Vous pouvez apporter des preuves pour contrer ses arguments.
Le but étant de confirmer si le litige est justifié et fondé.
How long does it take to initiate legal collection proceedings?
A distinction must be made between two time limits for initiating legal collection proceedings.
Limitation periods vary according to the nature of the debt.
For B2B receivables (creditor=company and debtor=company)
- The standard period is 5 years.
- However, there are exceptions, such as in the case of transport: 1-year time limit.
For B2C claims (against individuals)
- 2-year period
Outside the statute of limitations, it is it is imperative to initiate legal proceedings as soon as possible, especially in the case of B2B receivables given the sharp rise in the number of insolvency proceedings.
Choosing the most appropriate collection procedure
Depending on the answers to the above questions.
Our experts will guide you towards the most appropriate procedure.
There are several possible courses of action recover your debt. We offer 4 types of legal proceedings:
- Simplified” payment order procedure;
- Injunction to pay ;
- Provisional injunction ;
- Subpoena to the court ;
Simplified” payment order procedure
This procedure is suitable for claims of less than €1,000 for which full legal proceedings (with enforcement) would be too costly.
We file a request for an injunction to pay with the competent court, and once the injunction to pay has been obtained, it is served on the debtor by a bailiff.
A month later, we obtain the certificate of non-opposition which, in theory, would allow us to enforce the court’s decision.
But under this simplified procedure, we stop at this stage.
The bailiff’s visit to the debtor to serve the order may provoke a reaction and give rise to payment.
In all cases, the writ of execution remains valid for 10 years, so the creditor will be able to enforce the decision at a later date if he so wishes.
Order to pay
This is an appropriate procedure for claims that are not contested by the debtor, whether or not the contestation is legally founded.
This type of procedure is preferred for claims up to €20,000.
For higher claims, procedures involving the assistance of a lawyer are preferred.
This procedure is quick and simple, and does not require legal representation.
Once the Certificate of No Opposition (CNO) has been obtained (see above), the judicial commissioner can begin the execution process.
Provisional injunction
Preference will be given to summary proceedings if the amount of the claim is sufficiently large (above €15,000/€20,000) and if there is no dispute or contestation by the debtor.
This procedure requires the intervention of our lawyer, but it remains a fast procedure (2 hearings in general).
The summary order is obtained within a few weeks and can be enforced immediately by the court commissioner.
Subpoena to the court
If there is a dispute and if the amount of the claim is significant, we advise you to initiate proceedings before a court of law.
Dans ce cas, votre argumentaire et vos preuves seront essentiels pour obtenir gain de cause.
The case is assigned to a lawyer.
Several hearings take place, allowing for debate and the exchange of conclusions between the lawyers.
This procedure is generally lengthy, lasting from 3 to 18 months, or even longer depending on the number of submissions and the court’s workload.
What next?
Once the writ of execution or judgment has been received, the file will be forwarded to a territorially competent bailiff for service, accompanied by a summons to pay or seizure for sale.
Seizure procedures can then begin, such as the seizure of the bank account (preceded by a FICOBA request, if we do not have the bank details) or the seizure and sale of movable property.
Depending on the results of this seizure and the amount of the debt, the case will be stopped or referred to other enforcement measures (seizure for sale, for example).
You now know the essential information about judicial recovery.
Cette démarche est parfois indispensable, mais demande beaucoup de temps et peut parfois vous coûter cher.
Il est donc important de suivre les étapes une à une avant d’entamer une procédure.