Debt Collection in Slovenia
Debt Collection in SloveniaUpdated on Tuesday 28th January 2020
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The process of debt collection can be a difficult procedure for those who are not familiarized with it. Even though, at the beginning, the creditor tries to collect the debt himself in an amicable way, it is advisable that for high outstanding liabilities, a debt collection agency or a law firm in Slovenia to be hired.
How can a person collect debt in Slovenia?
The debt collection agencies or the law firms hired to collect the debt can begin this process in an amicable way, by sending notifications to the indebted person/company and trying to reach a settlement that would be convenient to both parties. Usually all the communication methods are used - by phone, email or mail. We can represent all types of companies, developing a wide range of activities, including import-export operations (in the latter case, businesses will need to have an EORI number in order to import goods here).
In certain cases, the creditor can agree to receive equal installments for the outstanding amount of cash or for receiving a smaller amount as long as it is delivered in due time and the difference is not substantial (between the initial amount and the actual amount). Persons and companies that must collect debts from their business partners can receive legal assistance from our team of Slovenian lawyers, who have an in-depth expertise in the field.
We invite you to watch a video referring to the debt collection procedure, presented by our lawyers in Slovenia:
Litigation procedure in Slovenia
If the above procedures fail, the debt collection agency or the law firm in Slovenia can begin the process of litigation. Before starting it, a final notification is delivered to the debtor stating the fact that, if the claim is not covered in due time, the legal procedures will be initiated.
Usually, at this stage, the debtors choose to pay the liabilities in order to avoid a legal procedure that can be more expensive and can take a longer period of time to be resolved, unlike the amicable procedure. In the first stage, the initial expenses are covered by the claimants, but the debtors must consider the fact that, if the decision is against them, all the court fees, other related expenses and the value of the claim must be covered by them. The following documents must be delivered before starting the process of litigation:
- • a registration proof issued by the Business Registry of the entity;
- • copies of the overdue invoices and documents signed by the debtor;
- • an account statement with current financial status of the debtor (person or company);
- • a power of attorney granted to a Slovenian lawyer to represent the creditor in front of the court.
A legal procedure can be applicable if the monetary funds of the debtor can be found and if the judgment can be delivered in Slovenia. In case the decision is accepted, the debtor must cover the claim and, if not, the regular lawsuit can start. As a general rule, a lawsuit in Slovenia is held in the national language of the country, but Hungarian or Italian are also available, in the Slovenian regions in which these ethnic minorities are present.
Statement of claim in Slovenia
The statement of claim has to be written down (by hand or printed) in the official languages accepted in Slovenia and signed by the claimant. However, it is important to know that the local legislation allows electronic statements of claim, in which case the claimant must provide an electronic signature.
Amongst numerous necessary aspects, the statement of claim must include a set of components. For example, it is necessary to specify the names and the addresses of both parties, the main subject of the litigation case, the claims requested by the parties, the value of the dispute and any document that is related to the respective case.
In a regular lawsuit, the judge will first gather all the necessary information and then will appoint a hearing where both sides are present and can defend their case. The decision taken by the judge is delivered to both sides in written and is enforceable immediately.
The debt collection agencies and the law firms are more familiar with this type of case and can have more success than the individual procedures taken by the creditors. Persons who need more details concerning the debt recovery procedure are invited to contact our law firm in Slovenia. Our attorneys can help both local and foreigners in recovering debts from clients and business partners, but we can also represent natural persons in opening a local business and obtaining the necessary permits. Investors can also rely on the expertise of our lawyers on the steps necessary for VAT registration in Slovenia.