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Everything you should know about recovering debts in Italy as a foreign national: An Italian debt collection guide
If you have outstanding cross-border debts in Italy, you should understand the differing processes, laws and customs related to debt collection. In Italy, undisputed debts can take approximately four months to receive. However, if the debtor argues or refuses to acknowledge the claim, this will increase the complexity of the matter. In these instances, instructing multi-lingual debt collection lawyers qualified in Italy is extremely beneficial.
This guide summarises all the information in the Italian debt collection hub, including the process for recovering debts in Italy and when foreign nationals should seek legal advice.
Click on the links below to jump to that section:
Find out about the process for recovering debts in Italy, and the best practices to consider.
Discover the challenges foreign nationals may face when recovering debts in Italy.
Discover the debt collection laws in the Italian jurisdiction, and when they are applicable.
Find out when you need debt collection lawyers (Avvocati) in Italy.
What should foreign nationals know about recovering debts in Italy?
The process of recovering debts in Italy can be divided into several steps, each requiring careful consideration and strategic planning. The initial step is to send informal reminders of the outstanding debt to the debtor in order to attempt settlement amicably. After this fails, the Italian debt collection process is as follows:
Letter Before Action (LBA): In accordance with Italian legal standards, an LBA should be drafted and sent to inform the debtor of your intention to begin legal proceedings. This should include details of the debt, such as how much is owed, and when it is due to be paid.
Tracing agents: With cross-border Italian debt collection, it can be challenging to find the contact details of the debtors in a different country. Italian debt collection lawyers will instruct tracing agents to find out this information.
Issue of proceedings: Your debt collection lawyer will initiate formal legal proceedings before an Italian court and represent you.
Enforcement: Once a judgment has been made in favour of the creditor, enforcement actions may be required if the debtor fails to comply with the court's decision. This may include property liens and bank account seizures.
Find out more about the Italian debt collection process for foreign nationals with our expert guide.
What are the issues for debt collection in Italy?
Foreign nationals, navigating the Italian debt collection process can face significant challenges. The language barrier, unfamiliar legal procedures and cultural differences complicate negotiation with an Italian debtor. Moreover, the lack of familiarity with Italian laws and regulations may hinder effective debt recovery efforts.
Businesses operating in Italy face unique challenges when it comes to debt collection. Besides the legal and procedural hurdles mentioned earlier, companies must also contend with commercial considerations and reputational risks. Most businesses rely on prompt debt recovery to maintain cash flow, delays or difficulties in recovering debts can have a detrimental impact on business finances and potentially its viability.
Italian laws on debt collection
In Italy, the judicial power is split into two different jurisdictions:
The 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.
The special jurisdiction: consists of Italy's membership in the European Union, and the communal laws adopted by all EU member states.
Debtors are required to pay an invoice within 30 days in Italy. However, if this debt remains unpaid or ignored, the limitation period for legal action is ten years, in accordance with Article 2946 of the Civil Code.
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 services include:
Company searches
Confirmation of company trading address
Credit scoring
Issue of proceedings
Telephone collection
Letters before action
Personal visits
Enforcement
Bankruptcy & winding up service
Find out more about the debt collection services Giambrone & Partners provides here.
Do I need a debt collection lawyer in Italy?
If your attempts to recover funds from Italian debtors have been met with silence or refusal, you will require a debt collection lawyer. They will apply a range of tactics from informal calls and emails to your debtor to formal letters that state the amount owed and when it is due. If your debtor does not acknowledge the Italian debt, initiating legal proceedings may become necessary.
Hiring an Italian debt collection lawyer can simplify the process of recovering outstanding debts in Italy. Their understanding of local laws, expert guidance and bilingual skills, these legal professionals offer invaluable support and representation throughout the debt collection process.
Giambrone & Partners is an international law firm that specialises in various fields, and has a successful track record of recovering overseas debts, including from Italy. Our debt collection lawyers are multilingual and operate in multiple jurisdictions.
Contact Giambrone & Partners today for more information on our debt collection services, or to request a callback with one of our experts, contact Giambrone & Partners today.
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