Disclaimer: This text’s purpose is exclusively informative. It does not substitute legal advice. Each case is different and requires an individual approach- contact us for further guidance.
Payment delays affect liquidity of businesses, whether the creditor or the debtor is based in Greece or abroad. Our Firm, Ratio Legal Services, supports consistently Greek and International businesses, professionals and investors in debt and assets recovery from Greek or foreign debtors who own assets in Greece. Especially for foreign creditors, we cover full guidance on translation, cross-border services and enforcement. This article summarizes the basic steps of this procedure without multiple legal terms or complex language.
Documentation & First steps
Success in this procedure begins with the case file. Collect invoices, contracts or agreed payment conditions, advice/delivery notes, account balance statements, relevant emails and any other document proving that the debt was incurred and remains unpaid. Document the currency of the transaction and the expiring date of the debt. Before we continue with the procedure, we conduct a brief creditworthiness check of the counterparty: his/her status at the General Commercial Registry, official assets, business activity. This check allows us to conduct a realistic strategy of credits and debts.
Formal notice & Negotiation
In most cases, we begin with a formal notice. We set a clear and short deadline, probably between 5-10 days and we send a warning regarding future procedures (payment orders, lawsuits, interim measures). On parallel we can propose a plethora of solutions: one-time payment with potential discount, payment plan, acknowledgement of debt with notarial rendered immediately enforceable. A professionally drafted and commercially adaptable agreement resolves a significant proportion of cases without resorting to litigation.
Payment order
In case a claim relies on specific documents and no substantial objection is expected, we propose the application of a payment order. A complete case file enables the court to issue a payment order in a short period of time, even though this always depends on the case. After the service of the action, the debtor has a short deadline on filing an objection. If no objection is filled in time, the title is enforced and we can move on with the mandatory execution process. Even if an objection is filled on time, the added pressure on these procedures often concludes on settlement.
Lawsuit (ordinary action)
If the debt is doubted or the case file is insufficient to place a payment order, we can file a lawsuit. The process continues with the service of the action (including international services via Apostille or European Regulations when the defendant is not Greek) and with the court hearing. The delays on the issue of the court’s decision are based on the type of court and its workload. The decision generally needs from months to a whole year. During this whole time, settlement remains always a choice.
Interim Relief
When there is risk that the debtor may dispose or burden assets, we seek legal protection. Interim measures may include temporary seizure of bank accounts, pre-notice of a mortgage, freezing of real estate or company shares. We can file the interim measures alongside a payment order or a lawsuit, based on a conceivable claim or risk.
Mandatory execution & Property reacquisition
Succeeding the acquiring of an enforced execution title (final decision, payment enforced order, notarial note etc) we proceed with the execution on: bank accounts, seizure or pre-notice of a mortgage through, execution of vehicles or equipment etc.
Asset Tracing
The reacquisition of debts requires awareness regarding their extent. We use public registers (General Commercial Registry, Cadastre), commercial databases, and –where permitted– information requests to banks or authorities. Our purpose is to track the liquidable assets. All our actions are always applied according to the official Regulation on Data Protection (GDPR).
Needed documents
To place a quick evaluation, you can send us: copies of invoices and contracts, banking balance, relevant emails, contact information trade name of the debtor and information for known assets. We will inform you in case further documents are needed.
If the creditor lives abroad, we may need some official translations via Apostille; where required. We will guide you step-by-step.
