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Debt Collection and Jurisdiction in Portugal
Debt collection in Portugal and the applied jurisdiction may not be straightforward to understand. If you have outstanding debts in Portugal but you live in the UK, it can be problematical to understand the legal routes you can take and the jurisdiction that applies. By instructing multi-jurisdictional debt collection lawyers who are qualified in Portuguese law, you can build an airtight case to retrieve your outstanding debts as soon as possible.
In this guide, we will explore which jurisdiction applies in your Portuguese debt collection case, as well as whether a debt that arises in England and Wales can be enforced in Portugal. We will also discuss time limits during which debt can be pursued in Portugal, the penalties of non-compliance with Portuguese debt collection law, and how our Portuguese lawyers (Advogados) can help.
Click on the links below to jump to that section:
Discover who has jurisdiction over a debt collection case in Portugal
Find out whether a debt amassed in the UK can be enforced in Portugal
If a foreign national owes you money, it is important to know if you have a right to debt recovery
Discover the various time limits for Portuguese debt collection cases
Find out what a debtor can expect if they don’t comply with Portuguese debt law
Here’s how we can assist
Which jurisdiction applies in Portuguese Debt Collection?
Typically, jurisdiction in a debt collection case lies with the courts where the debtor is located rather than the creditor. Therefore, if your owed debt lies in Portugal, the Portuguese courts will have precedence over the case. By seeking legal advice from Portuguese debt collection lawyers, you may be able to avoid court and implement alternative dispute resolution to retrieve your debts.
Jurisdiction can, however, depend on a number of factors, such as the circumstances of the case and whether it involves individuals, businesses or cross-border transactions. Portuguese law also offers certain exceptions, such as if there is an existing agreement between the parties regarding jurisdiction.
You can find out more about debt collection laws here.
Can a Debt that arises in England and Wales be Enforced in Portugal?
A UK national can enforce and chase a debt in Portugal under certain conditions. A judgement can be obtained in the courts of England and Wales, then you can then seek to enforce that judgement in Portugal. Each EU member state has two legal routes they can venture down: European Small Claims and European Order for Payment procedures. However, because the UK is no longer an EU country, a treaty that enforces judgment between member states will not help a non-EU country, also UK is not signed up to the Lugano Convention.
It is important to seek cross-border legal advice to help you navigate your claim and ensure that the route to enforcement can be navigated.
Can you pursue a Debt Overseas?
It is entirely possible to pursue outstanding debt owed to you from another country such as Portugal. Debt continues to amass even if the debtor or creditor have the left the country where it originated. Creditors can use a multi-jurisdictional law firm and initiate proceedings in the debtor's home country. Giambrone’s Portuguese Abogados can support you whether court proceedings take place in Portugal or in England and Wales.
Our international debt collection lawyers at Giambrone and Partners can provide a range of services, such as confirmation of company trading addresses, letters before action, personal visits and bankruptcy and winding up proceedings. You can find out more about our debt recovery services here.
What is the time limitation for pursuing a debt in Portugal?
The time limitations on pursuing debt in Portugal can vary with each case, unlike other countries such as Spain. Depending on the case and its complexities, time limits can vary from between five and 20 years, with some special cases treated as exceptions.
With such varied timescales, it is important to seek legal advice as soon as possible to enable you to start your case. The more evidence you gather and the quicker you seek the legal advice, the more likely to be able to collect your outstanding debt as quickly as possible.
What are the Penalties of Non-Compliance in Portuguese Debt Law?
There are various penalties that can be imposed on anyone who does not fulfil their contractual payments or fails to adhere to their financial obligations. These include:
Interest and late payment charges: interest may accumulate if late payments are continuous, late payment charges may be applied subject in accordance with the contract
Legal action: creditors are within their rights to take legal action against a debtor by instructing experienced Portuguese debt collection lawyers. Our lawyers will always attempt to engage with the debtor in alternative dispute resolution and avoid court proceedings until absolutely necessary.
Asset seizure: if a court judgement is obtained, creditors may seek to seize the debtor’s assets, such as their bank accounts or real estate
Credit damage: Debtors may find that their creditworthiness is negatively impacted if they fail to pay their debts
Debt collection fees: debtors may be responsible for paying debt collection fees accrued by the creditor, such as legal fees and expenses incurred
Restructuring or bankruptcy: in severe cases, debtors may face bankruptcy proceedings if failure to pay their debts is prolonged
How Giambrone and Partners Can Help
Giambrone and Partners, our multilingual, multijurisdictional Portuguese lawyers (Abogados) are experienced in debt collection in several countries, as well as Portugal. We can provide a range of debt collection services, helping you recover what you are owed. Our recovery rate is high in most cases, making every effort to negotiate a settlement without the need for court proceedings. However, if your case does go to court, we will assist you every step of the way.
To find out more, or to book a consultation, please get in touch with us today.