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Italian laws on debt collection How does a debt collection agency in Italy recover debts?
For foreign nationals, recovering cross-border debts it can be stressful, particularly if you are unaware of the laws and limitation in different countries in relation to debt collection. If there are no jurisdiction clauses in the initial contract the debt collection process should take place in the jurisdiction of the country in which the debt arose. This will mean that the creditor will have to follow the law of that country.
Italy's judicial system comprises a series of courts and a body of judges, which are split into two levels, one relates to Italian jurisdiction and the other to the European Union’s overarching jurisdiction. It is important to have a basic understanding of Italian law on debt collection when collecting cross-border debt.
This guide will explore Italian laws on debt collection, and what creditors should know about recovering debts in Italy.
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Discover the process for recovering cross-border debts in Italy.
The best strategies for Italian debt collection, including the payment order procedure.
Learn more about alternative Italian laws surrounding debt recovery to be aware of.
Browse through our list of debt collection services, and learn how Giambrone & Partners can help.
Read the most common queries on Italian debt collection laws.
How does the judicial procedure for debt collection in Italy operate?
In Italy, the judicial power is split into two different jurisdictions: the jurisdiction and the special jurisdiction. The special jurisdiction consists of Italy's membership in the European Union, and the communal laws adopted by all EU member states.
This ordinary jurisdiction consists of the Justices of the Peace (Giudice di pace), the trial courts, enforcement courts, the Court of Appeal and the Court of Cassation, the highest Court of Appeal in Italy. For Italian debt collection, debts under €10,000 should be filed through the Justices of the Peace, whilst larger sums should be filed through the courts or tribunals (Tribunali).
What is the judicial process?
It is important to seek legal advice as soon as possible and establish how your debt can be recovered. The lawyers will be able to provide expert advice on the best strategies to recover the debts successfully. Your Italian debt collection lawyer will file a demand for payment with the Court and submit evidence and documentation to support your claim. Your claim should be made after you have made attempts to recover the outstanding debts which have either been ignored or refuted.
If the Court agrees to the claim, the debtor must pay the sum within 40 days of the official reminder. If the debtor disputes the claim, further investigations will be conducted into the validity of the claim.
Once enforcement proceedings are initiated, the debtor must pay the claim under Article 480 of the Code of Civil Procedure.
To navigate the complexities of Italy's juridical system, Giambrone and Partners can guide your through the experience, with our experienced debt collection lawyers explaining the process.
Contact Giambrone & Partners for more information on our Italian debt collection services.
What is a payment order and why is it used for Italian debt collection?
The payment order (Ingiunzione di pagamento) is an Italian fast-track procedure that allows the creditor to obtain a court decision. However, a payment order is not always applicable, and depends on the value of debt and the written evidence surrounding the claim. This debt collection procedure can be split into two categories:
Outside of the presence of the debtor: This will be initiated when the debtor receives the payment order after it has been issued by the Court, also known as the ex parte proceeding.
Initiated by the debtor: If, following the debtor’s receipt of the invoice and failure to pay, you have sent letters to the debtor highlighting the debt, the debtor has the right to challenge the payment order.
The Italian Civil Procedure Code dictates the circumstances in which the payment order can be implemented to recover Italian debts. Our Italian debt collection lawyers will use their expertise in Italian law to select the best strategy for recovering debt.
If the payment order is refused, ordinary civil proceedings (Processo ordinario di cognizione) will be instigated, which may result in a time-consuming process.
During your initial consultation, Giambrone & Partners' debt collection lawyers will assess your specific circumstances to decide the best way in which to proceed. This typically involves focusing on methods outside the Italian Court, including negotiated dispute resolution (NDR).
Find out more about cross-border debt collection in Italy and the benefits of NDR with our expert guide here.
Are there any other Italian laws to consider for debt recovery?
In Italy, the debtor is required to pay an outstanding debt within 30 days. However, if this debt remains unpaid or ignored, the limitation period for legal action is 10 years, in accordance with Article 2946 of the Civil Code. This means that the creditor has this length of time to chase the debt and initiate legal proceedings.
It is also worth noting that, as an EU member state, Italy also implements a European Payment order. This is a simplified procedure for obtaining cross-border debts and can be issued by Italian courts within 30 days.
If you are unsure of the best strategies to recover cross-border debts, particularly with the vast number of laws in Italy, seek legal advice. Experienced lawyers will understand differing laws and operate in multiple jurisdictions.
What debt collection services do Giambrone & Partners provide?
If you are owed cross-border debts that originated in Italy, you will require the help of an expert lawyer. Giambrone & Partners is an international law firm specialising in various fields, including a successful track record in debt collection.
Our team of Italian debt collection lawyers will help draft and send a letter before action (LBA) to initiate the process, highlighting the debt's details, how much is owed, when it is due, and the intention of undertaking legal action if not addressed. Giambrone & Partners also offers several other debt collection services that can help you during this stressful period, and will assist you in recovering the Italian debt as quickly as possible. This includes:
Company searches
Confirmation of company trading address
Credit scoring
Issue of proceedings
Telephone collection
Letters before action
Personal visits
Enforcement
Bankruptcy & winding up service
To request a callback from our debt collection lawyers, or for further information on our services, contact Giambrone & Partners today.
Frequently asked questions
How are bankruptcy and insolvency handled in Italian debt collection?
In the event that enforcement measures are unsuccessful, the creditor may request that the debt be shown as a "loss" on their balance sheets. According to Article 15 of the Italian Insolvency Act, a creditor may petition the debtor for bankruptcy if the debt exceeds €30,000.
In accordance with Article 93 of the Italian Insolvency Act, creditors will thereafter seek the inclusion of its receivables to the bankrupt's statement of legal responsibilities.
Find out more about the enforcement of foreign judgments in Italy here.