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Debt collection Iceland: quickly and efficiently collect your invoice abroad
Whether you have an Icelandic debtor ignoring your invoices or you are involved in an international trade dispute with a party in Iceland, Collection Company provides debt collection services in Iceland. Together with our local lawyers and bailiffs, we collect your claim in Iceland.
We always try to collect your claim first through an extrajudicial process. In the vast majority of cases this is sufficient, but if we are unable to collect your money through amicable procedure, we have all the means to file a lawsuit against your debtor.
- Nationwide coverage in Iceland
- One dedicated English speaking contact
- Proven track record
- Tailor-made services for each case
- Expert advice and a transparent process
- 24/7 online access
Specialized in debt collection in Iceland
Have you provided goods or services to a customer in Iceland and has the due date of the invoice passed without receiving payment?
If you or your company have an overseas customer who is not paying an invoice, you suddenly have to deal with the different legislation and the local trading culture of the country. You are often confronted with the fact that you do not speak the language.
Iceland is also not part of the European Union, so you cannot rely on the European procedures that exist for collecting cross-border claims.
Transfer your claim to Collection Company and you don’t have to worry about anything. As a specialist in international debt collection, we can recover debts all over the world, including Iceland. We also handle the communication with your customer.
Because we work together with local partners who are familiar with local laws and regulations and also speak the Icelandic language, we can approach your debtor in an effective manner. In most cases, it is not even necessary to go to court.
Transfer your claim now
Do you have a claim in Iceland? Fill out the contact form and one of our international debt collection agents will get in touch with you to discuss your case.
Why choose Collection Company for debt recovery in Iceland?
- Global coverage
- One dedicated English speaking contact
- Experienced debt collection specialists with knowledge of Icelandic legislation
- Broad network with local lawyers and bailiffs
- Seamless connection from extrajudicial to judicial action
- Effective local approach
- 24/7 tracking through your own Online Cockpit
How does debt collection in Iceland work?
The debt recovery process in Iceland consists of two phases: an extrajudicial (amicable) phase and a legal procedure.
Typically, our aim is to recover your money with an amicable procedure. During this phase, we attempt to collect your outstanding debt without resorting to legal action. Extrajudicial debt collection is a fast and efficient way to recover your debt. In 9 out of 10 cases, we succeed in collecting your debt during this amicable phase.
However, if your debtor does not pay during the amicable phase, we still have the option to enforce your through the legal system. Our lawyers and attorneys in Iceland will summon your debtor to court. With a court judgment, we can then engage an Icelandic enforcement officer to seize assets from your debtor.
- Upload your invoice online
- We'll start your case
- We'll start with the debt collection process
- Together we decide the best strategy for collecting your debts
- Monitor the status of your case 24/7
- Any questions? Your personal accountmanager will answer them all!
- Your invoice is payed
Extrajudicial debt collection
As mentioned, an out-of-court debt collection process is generally an effective (and cost-effective way) to collect outstanding invoices, especially when your debtor simply does not respond to your invoices and reminders (so-called undisputed claims).
If you transfer your claim to us, we will send your debtor a reminder on our behalf (in Icelandic). Often, this alone is sufficient to get the bill paid. At the same time, we try to get in touch with your debtor. We do this, for example, by telephone or via WhatsApp. If necessary, we will contact your debtor 16 times in a period of three weeks.
This way, we gradually increase the pressure. We let your debtor know that if he does not pay the invoice, we will take legal action. As a result, the costs for your debtor will only increase further. Most debtors understandably choose to pay the outstanding bill.
Judicial proceedings
Is your debtor a persistent defaulter who refuses to pay, even after an amicable procedure? Or do you have a business dispute with your customer in Iceland? In some cases an out-of-court procedure is not sufficient to compel your defaulter to pay. In that case we take legal action.
For this, we have to initiate a civil procedure at one of the 8 district courts (Héraðsdómstólar) in Iceland. We file a lawsuit at the court and have your debtor served a summons.
Your debtor then has the opportunity to challenge the case and submit evidence. If they fail to do so, the court will immediately issue a default judgment, which is generally in your favor.
If your debtor does contest the case, the court will examine the submitted evidence from all parties. During a hearing, the judge will ask questions and both parties will have the opportunity to substantiate their arguments. Based on this information, the judge will make a ruling. The ruling of the court is recorded in a judgment. With this judgment, we can proceed to enforce the claim against your debtor.
Currently, all types of claims in Iceland, regardless of the amount, are handled through civil procedures at the district courts. There are no special small claims procedures.
It is not only annoying that you have to wait unnecessarily long for your money, but it also causes damage to you or your company. You can, for example, not invest the money to further develop your business, you have to incur costs to collect your claim, and you may end up having trouble paying your own bills.
Fortunately, in Luxembourg, there are several ways to recover the costs and damages you incur due to non-payment.
How does the debt recovery procedure in Iceland work?
Step 1
Typically, we start with an amicable debt collection process. Your debtor will receive a reminder from us and we will contact your debtor 16 times over a period of three weeks.
Step 2
If your debtor still doesn’t pay after these efforts, we will send a final reminder. This is the last chance for your debtor to pay before we initiate legal proceedings.
Step 3
Does your debtor not pay after the reminder? Then we can take your debtor to court. With a court judgment, we can proceed to enforce the debt by seizing assets from your debtor.
Arbitration
In international business transactions, arbitration is often used as an alternative to judicial procedures. Arbitration is a way to resolve a dispute without using the legal system.
An arbitrator or an arbitration tribunal is appointed. They often consist of experts within the industry. These arbitrators act as judges. Just like in a regular lawsuit, both parties present evidence to support their position. Then, the arbitral tribunal makes a decision. This decision is binding.
The advantage of arbitration is that it is faster than a regular lawsuit. Additionally, the arbitration tribunal usually consists of experts.
It is only possible to resolve the dispute through arbitration if both parties agree to it. It is also possible to agree on an arbitration clause prior to the sale.
Enforcing a court order
If your debtor fails to pay the outstanding amount after a court ruling, it is possible to seize assets from your debtor.
For this, we need to request a writ of execution from the judge in Iceland. With this writ, we can then engage a bailiff (fógeta in Icelandic).
The bailiff can, among other things, place an attachment on assets such as bank accounts and real estate of your debtor, as well as on income and even the debtor’s residence. If the bailiff seizes items, they will be publicly sold.
When the bailiff seizes income that is not sufficient to fully repay the debt, the seizure remains in place until the debt is repaid.
Prior to the seizure, we can prepare a recovery report. This way, we identify what assets we can seize from your debtor. This allows you to prevent, for example, putting an attachment on an empty bank account.
Interim measures in Iceland
In Iceland, it is also possible to have an interim attachment placed on your debtor’s assets leading up to or during a judicial procedure. Interim attachment is a preliminary measure intended to protect your debtor’s assets while the case is pending in court. This prevents the debtor from disposing of their assets before the court makes a decision (leaving nothing for you to recover).
At the same time, interim attachments serve as a way to put pressure on your debtor. As long as there is an attachment on your debtor’s assets, they cannot make use of them. This can hinder your debtor’s business operations. Therefore, many debtors choose to pay off the outstanding debt once the attachment has been placed.
Filing for Bankruptcy in Iceland
It can happen that your debtor is unable to pay the outstanding debt (or claims to be unable to do so). In that case, it is possible to petition for the bankruptcy of your debtor. When your debtor is declared bankrupt, the court appoints a trustee. They assess the possessions of your debtor and attempt to repay all existing debts as much as possible from these assets.
Most debtors will do everything they can to avoid bankruptcy. In practice, we see that a bankruptcy petition is often sufficient to prompt your debtor to pay.
Advice about your case?
Submit your contact details and one of our debt collection specialists will contact you immediately!
Legal areas of debt collection in Iceland
At Collection Company, we carry out debt recovery within various legal areas. We collect unpaid invoices and assist you during business disputes. But it is also possible to engage our services if you, for example, are entitled to compensation or if you are dealing with rental or purchase disputes.
We can assist you, among other things, with claims within the following legal areas:
- Construction law
- Rental and leasing
- Buying and selling
- Labor law
- Agency agreement
- Transport
- Damages and wrongful acts
We work directly for clients as well as for third parties such as lawyers and accountants.
Anything else we can help you with in Iceland?
- Reliable advice on contracts and terms
- Credit information on companies in Iceland
- Disputes regarding retention of title and right of reclamation
- Mediation in reaching private agreements and settlements
Immediately start a debt collection in Iceland?
Fill out our debt recovery registration form to submit your claim. Do you rather get personal advice from a debt collection specialist first? Submit your contact details below. Any questions? Call us at 070 – 762 0330 or send us an email.
Free advice on debt collection in Iceland?
Submit your contact details and one of our debt collection specialists will contact you immediately!
FAQ: Frequently Asked Questions about debt collection in Iceland
FAQ: What do we need for a debt collection in Iceland?
When you submit your claim to us, we would like to receive as many documents as possible that support your claim. This can include contracts and agreements, sent invoices and payment reminders, and your bank statements and credit notes.
We understand that a file is not always complete right away. Even if you don’t have certain documents, that is not a problem. Our collection specialist will contact you to discuss how we can prove the legitimacy of your claim.
If available, we would like to receive the following documents:
- Copies of agreements made, such as a purchase agreement, email correspondence, a fax confirmation, or simply a summary of what was agreed upon
- (Copies of) your invoices
- (Copies of) your payment reminders
- Your terms and conditions
- Proof of delivery
FAQ: Do you need a lawyer for debt collection in Iceland?
In Iceland, it is not mandatory to hire a lawyer during civil proceedings in the district court, but it is allowed. If your case requires it, we will seek the assistance of an Icelandic debt collection lawyer. Our debt collection agency works with the best law firms in Iceland.
FAQ: How much does it cost to initiate a legal procedure in Iceland?
Initiating a legal procedure costs between 15,000 ISK and 250,000 ISK, depending on the amount of the claim. In addition, there are other expenses associated with conducting a lawsuit, such as the costs for legal assistance and drafting the summons.
It is customary in Iceland for the losing party to be ordered to pay (part of) the costs incurred by the other party.
FAQ: Why not hire a debt collection agency in Iceland?
If your debtor is located in Iceland, it is of course possible to hire a debt collection agency in Iceland. The disadvantage is that you still have to deal with different customs and the language barrier. For example, how do you know which collection agency you can trust if you can’t read the reviews?
The great advantage of Collection Company is that, as a creditor, you have one dedicated English speaking contact during the process. This debt collection agent manages our local partners in Iceland.
Moreover, we can guarantee that we will take care of the entire debt collection process for you. Many collection agencies only carry out the extrajudicial process. As an international debt collection agency we have a network of lawyers and bailiffs in Iceland, so we are able to take legal action as well. This allows us to increase the pressure on your debtor from the start.
Why 40.000 customers tried our services
- The #1 collection company in the Netherlands and abroad
- Regional & local specialists
- Years of experience with international invoices
- Your own personal contact
- Extensive advice on the legal process
- Monitor the status of your case 24/7
Meet our specialized legal team
Joost Konings LLMLaw expert- May Leung LLMLaw expert
- Wesley Boeters LLMInterim lawyer
