Italian Debt Collection For Debt Recovery Companies

To collect a debt in Italy it is recommended that a company (or individual) instructs an business debt collection agency that deals specifically with Italy. Giambrone's business debt collection service has collected debts successfully for over 10 years and Giambrone's debt collection lawyers in Italy are able to settle a debt both outside of court and through court proceedings. Giambrone will always try to collect debts with minimal input from the courts.

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How will Giambrone’s Italian business debt collection services recover a debt?

The first step Giambrone’s Italian debt collection lawyers take to collect an Italian debt is to (informally) demand repayment of the debt, which usually involves a telephone call from the law firm. If informal means do not result in the debt being paid then an out-of-court notice in the form of a formal injunction letter (lettera di messa in mora) on Giambrone headed paper will be served to the debtor by registered post. This letter sent by Giambrone, formally requests payment, including principal, accrued interest and late interest, calculated in line with theLegislative Decree 231/2002, plus legal fees. The debtor will then have between 1 to 2 weeks to make payment.

What if the debtor doesn’t pay?

If the debtor doesn’t pay then a deed of injunction (atto di significazione) is served by a court bailiff (ufficiale giudiziario), warning that if payment is not made within 10 days of the notification date, then formal court proceedings will commence. However it is worth noting that this is still an out-of-court notice although it is issued by a court bailiff. If payment is still not made after the time period has expired then Giambrone’s Italian debt collection lawyers will request their client to supply all relevant documents relating to the outstanding debt, including the delivery receipts and/or a certified excerpt of the creditor’s VAT register (registro IVA vendite). After this, Giambrone’s Italian debt collection lawyers will file a petition with the judicial authority (i.e., the Tribunale / Giudice di Pace), requesting an injunction decree (decreto ingiuntivo).

Giambrone will commence formal court proceedings

The Italian court will then issue a decree ordering the debtor to pay the debt, including all interest and legal fees owed, within 40 days from the date the decree is served. The special proceeding is regulated by articles 633 - 656 of the Italian Code of Civil Procedure. Within this 40 day period the debtor is also allowed to file opposition to this decree.

Make an enquiry by contacting Giambrone here

How to start enforcement proceeding in Italy?

Actual enforcement proceeding begin by the serving of a deed of enforcement (atto di precetto), and are regulated by article 480 following the Italian Code of Civil Procedure.

If the debt is not paid or no defence filed then to start Actual Enforcement proceedings in Italy, an injunction decree, formally requesting the enforceable (formula esecutiva) decree, is filed with the Court. A separate decree, recorded on the original injunction decree, will then declare the latter formally enforceable by the judicial authority. Fees and expenses up to the date when the deed of enforcement is notified to the debtor are then also calculated and added.

What happens if the debtor still does not pay?

Giambrone will carry out actual enforcement proceedings, which will include a number of the following:

• Enforcement over movable assets:

The court bailiff will file with the Italian court a request to sell movable assets that the bailiff identified after visiting the debtor’s business/residence. A hearing will then be set up before a Judge, who will decide on the best course of action to take to sell these movable assets.

• Enforcement over assets held / receivables payable by third parties:

Giambrone can action an enforcement notice (atto di pignoramento) which is served by a court bailiff on any receivables payable to the debtor by third parties, i.e.banks. Third parties are requested to confirm whether they owe the debtor monies, if this is so, then a formal request for this outstanding amount is made.

• Enforcement over real estate properties:

An enforcement notice (atto di pignoramento) can be issued on any real estate the debtor owns with the enforcement order placed on the Real Estate Register with the relevant note di trascrizione. Seized properties will be sold or directly assigned to the creditor.

What if enforcement proceedings are not successful?

If enforcement proceeding are not successful, the creditor may request for the debt to be recorded in the creditor’s balance sheets as a ‘loss.’ If the debt is more than 30,000.00 Euros, as stated in article 15 of the Italian Insolvency Act, the creditor may file a petition for bankruptcy on the debtor. The creditors will then request the admission of its receivables to the bankrupt’s statement of liabilities,pursuant to article 93 of the Italian Insolvency Act.

How long will Italian debt collection legal action take?

If the debt is undisputed then Italian debt collection can take roughly 4 months to complete, however this depends on the complexity of the case, the region and the court. Disputed legal proceedings can take 3 years to complete.

“It is always advisable to collect debt through a pre-legal collection effort,” says Emanuele Castiglia, an Italian Debt Collection lawyer working for Giambrone in Italy, “as court action can be a long and drawn out process.”

Italian debt collection lawyers at Giambrone offer excellent legal advice and take the most suitable action on a case by case basis. Giambrone works closely with all the interested parties and gives the necessary support during the debt collection process.

Giambrone has an international network of Italian and International debt collection lawyers that assist individuals and commercial companies across the globe with the recovery of all types of debts. The firm manages both the domestic and international debt collection services.

Giambrone has been successful in settling most cases out-of-court without the need for judicial intervention.

Contact Giambrone: clientservices@giambrone.com

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