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Do you need lawyers for debt collection in Portugal
Debt collection across the European Union (EU) involves navigating a complex web of jurisdictions, some of which have differing laws. While the EU has attempted to achieve universal accommodation across Europe in many legal areas, the approach to debt collection still varies from country to country. This variation stems from different legal systems and cultural attitudes towards debt. In some countries, the process is straightforward. In others, it is variable and harder to navigate, so it is crucial to seek legal help if you have outstanding invoices in Portugal.
This guide will explore when lawyers (Advogados) that specialise in debt collection are necessary in Portugal. As well as highlighting the key factors to look out for when instructing an international law firm.
Click on the links below to jump to that section:
Read more about which situations you may need a debt collection lawyer for when in Portugal.
Discover the most important considerations when finding a debt collection lawyer.
Learn how you can recover debts overseas with the help of multi-jurisdictional lawyers.
Learn about the debt collection services in Portugal.
Read the most commonly asked queries on debt collection in Portugal.
When may you need a debt collection lawyer in Portugal?
If you are owed debts from a Portuguese resident or business based in Portugal, debt collection services may be required. Ensuring that you seek expert legal advice to assist you through this difficult situation is essential.
Ignored warning letters
Businesses or individuals in Portugal are expected to pay an invoice within 30 days of receipt. If the debtor has failed to pay the debt, the creditor should contact the debtor and remind them of the outstanding invoice in writing. If there is still no response, you may need to instruct a law firm to send a letter of action, stating that legal action will be undertaken if the debt remains unsatisfied.
If you do not speak Portuguese or understand the country's laws, debt collection lawyers (Advogados) are the best option. They can draft the initial letter before action and help with the subsequent steps.
Language barrier
One of the primary challenges faced by creditors dealing across borders is the language barrier. Portuguese debt collection lawyers provide language support and ensures that you are fully aware of the legal nuances and obligations.
If you are a British national
In the European Union (EU), the development of the European Payment Order (EPO) development streamlined the process of creditors claiming debts across EU member states, like in Portugal, which now no longer applies to the UK.
International debt collection lawyers (Advogados) can help recover debts from overseas, including in Portugal, by negotiating settlements and limiting the legal costs. This includes issues of proceedings, enforcement, credit assessments, insolvency and bankruptcy services.
To find out more about our debt collection services, contact Giambrone & Partners today to speak to our debt collection team.
What are the key factors to consider when instructing debt collection lawyers in Portugal?
Choosing the right law firm in Portugal is crucial, as this will provide guidance on all the options open to you. If you do not speak Portuguese, you should ensure that your lawyer is multilingual to guarantee strong and effective communication and a clear understanding of the debt collection process and the options available to you.
Your lawyer should have expertise in both British and Portuguese jurisdictions, in addition to speaking both English and Portuguese and providing an understanding the legal frameworks of the countries. Through this, they will be able to direct you to the most appropriate course of action.
Find out more about cross-border disputes and the importance of multi-jurisdictional lawyers here.
Debt collection can involve various steps, from negotiation and mediation to litigation. Giambrone & Partners has an experienced international debt collection team most of whom speak English. Our Portuguese debt collection lawyers have extensive experience resolving situations involving multiple jurisdictions.
Find out more about our debt collection services here.
What are the best strategies to recover debts in Portugal?
Debt collection lawyers in Portugal employ various strategies to recover debts, adjusting their approach to the specifics of each case. This flexibility allows a tailored strategy to be developed that suits the specifics of your case, increasing the likelihood of a successful outcome. Common and successful strategies for recovering debts include:
Alternative dispute resolution (ADR)
ADR is a collective term for the procedures of negotiation, arbitration, mediation and conciliation. This is where trained arbitrators and mediators act as neutral third parties to resolve disputes without going before a court. It is often quicker, less formal, and more cost-effective than traditional litigation.
Arbitration
Arbitration is where a neutral arbitrator/s hears the arguments for both sides of a dispute and can make a binding decision which all parties must abide by. It is similar to a court proceeding but is usually more flexible and held privately. Debt collection lawyers in Portugal opt for arbitration when parties want a definitive resolution but wish to avoid the lengthy procedures and public nature of court hearing.
Find out more about a guide to arbitration and the role of arbitrators with our expert guide here.
If ADR is unsuccessful, debt collection lawyers will establish the financial strength of your debtor to determine whether the time and costs involved in court action set against the likelihood of settlement of the outstanding debt makes legal action a viable proposition.
How can Giambrone & Partners assist with Portuguese debt collection?
To help guarantee debts are recovered from Portugal, international and multijurisdictional lawyers with a strong track record in debt collection are essential. Giambrone & Partners offers various services to help with disputes involving cross-border debt recovery.
Our multi-lingual lawyers can assist both individual clients and organisations in cross-border disputes and debt collection. We communicate with you in your own language, ensuring the process is transparent and understandable.
We will advise on the best jurisdiction to litigate in, considering all relevant factors, such as the ease of enforcement of a court order in the debtor's country of origin.
For more information or assistance with debt collection in Portugal, please contact us via our online enquiry form or email us at clientservices@giambronelaw.com.
Frequently asked questions
What documents are required for debt collection in Portugal?
For debt collection in Portugal through the courts, the creditor should possess substantial evidence and provide documents to the court that substantiate the debt's existence.
This includes all forms of communication and agreements between the involved parties, invoices, records of services and goods supplies, and any statements from witnesses.
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