Debt Collection – Guide to Procedures

Debt Collection – Guide to Procedures

Being a creditor is sometimes hard work when debtors do not pay their invoices within the specified deadlines and there can be a lot of precious time with the process that could have been used more appropriately on other tasks.

Therefore, there are also many creditors who have to look to get help from outside. Many debt collection companies in Denmark exist, so in order to clarify the market, in case you need help with debt collection, you can bypass this website, which brings together several different collection companies, and where your specific case is matched with the best company for the task.

The different procedures

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Debt collection cases often come in different versions, so they require different approaches from the collection companies (there are of course also the more classic cases).

The most common form of debt collection is invoice collection, where a given customer has not paid the invoice within the deadline, even though he or she has received one or more reminder letters.

The simplified debt collection process is when the creditor chooses to make a single query with a payment order to the bailiff for assistance in recovering the debtor’s debt. The court of law then takes over the case.

However, the simplified collection process can only come into force if the amount owed is no more than DKK 100,000 excluding interest. At the same time, as a creditor, you must be more or less sure that the debtor agrees with the claim. Mortgage debt collection is if the creditor has mortgage deeds in real estate (against loans or credit), where the debtor does not comply with the applicable payment agreements.

 

The case may smoke in the court of law if the payments continue to be breached

The case may smoke in the court of law if the payments continue to be breached

If the debtor still does not repay the debt, the creditor’s lawyer may ultimately request the property for a foreclosure sale. Rent collection refers, as the name also indicates, to the resident’s non-payment of rent, or the resident’s non-payment of tenancy. If the payments are breached, the landlord (the creditor) may ultimately choose to terminate the lease so that the resident must move out with a few days’ notice. Here it is worth noting that the termination of the contract must of course take place, cf.

Generally, there are a few legal issues that are quite sensible to settle for debt recovery from debtors – regardless of the nature of the case. However, it can also be a sensible solution if you are ally with a debt collection company or a competent lawyer who can handle the given collection procedure for you.

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