Do you have a Romanian debtor who is not paying an outstanding invoice? Collecting your unpaid claim in Romania can be a challenging and time-consuming task. After all, you are not familiar with Romanian law and probably don’t speak Romanian.
Collection Company specializes in international debt collection and can quickly and efficiently collect the debt for you, even in Romania. For successful debt collection, our debt collection agency works together with a wide network of local specialists like Romanian lawyers, attorneys, and bailiffs.
Specialized in debt collection in Romania
What do you do when a Romanian customer refuses to pay? You probably don’t speak Romanian and contacting a Romanian debt recovery agency can be difficult. Moreover, you are likely not familiar with Romanian laws and regulations regarding non-payment.
Therefore, contact an international debt collection specialist like Collection Company. When you assign your claim to us, you’ll communicate with one dedicated English speaking point of contact who will coordinate the debt collection process for you. Additionally, we work with local debt collection specialists in Romania who assist you with legal matters and the actual collection of your money.
Would you like to discuss the chances of success for your claim in Romania? Request a free consultation now.
Why choose Collection Company for your debt collection in Romania?
Submit your debt recovery case
Unpaid bills in Romania and a debtor who no longer responds? Submit your details and one of our international debt collection specialists will contact you as soon as possible to discuss your case.
How does debt collection in Romania work?
Just like in most countries, there are different ways to collect an outstanding claim in Romania. An extrajudicial debt collection process is usually the first step: we try to collect your invoice without involving the court.
If we are unable to collect your invoice in the amicable phase of a debt collection procedure, we can take legal action to demand payment. Legal proceedings work very different in Romania compared to most European countries. Below, we explain what both the judicial and extrajudicial procedures look like in Romania.
Extrajudicial debt collection in Romania
If you have sent an invoice to Romania that is not being paid, it is generally advisable to first initiate an extrajudicial or amicable collection process. Perhaps your debtor simply forgot about the invoice or decides to pay it after some insistence. If that is the case, there is no need to file a lawsuit at a Romanian court.
If you transfer your claim to us, we will send your debtor payment reminders and collection notices in Romanian using our local specialists. Additionally, we will make phone calls and send SMS messages.
In total, we will contact your debtor 16 times over a period of three weeks, gradually increasing the pressure. Ultimately, we will inform your debtor that we will file a lawsuit against them if they do not pay the invoice promptly and that legal and collection costs will be incurred.
In most cases, we are able to collect your invoice during this extrajudicial phase.
Judicial debt collection in Romania
In some cases, your debtor won’t pay the debt, even after an out-of-court procedure. In that case we’ll have to file a lawsuit. The legal process depends mostly on the amount of the claim and whether you have a payment agreement with your debtor. Under Romanian law, there are roughly three options to collect your invoice.
If you have clear written evidence to support your claim, complete with the debtor’s signature, it is possible to request a payment order (Ordonanta de plata) from the court. The judge will review the documents and, if the claim is granted, issue an order for payment. This makes your claim immediately enforceable. With the payment order, we can have a Romanian bailiff seize assets from your debtor.
If your claim (excluding any incurred collection costs) is lower than 10,000 Romanian Leu (RON), it is possible to initiate a special procedure for small claims. This case will be heard by the local court of first instance (Judecatori).
To start such a process, we need to fill out and submit a standard form to the court. Subsequently, your debtor has 30 days to respond to the claim. The judge will then assess the claim without hearing both parties and make a ruling.
Both parties have the right to appeal the judge’s decision.
For claims above 10,000 RON, a regular judicial procedure (Procedura de drept comun) is necessary. We submit your claim to the Judecatori, the local court in the district of your debtor. Only for claims above 200,000 RON, the case is brought to the higher Tribunali, the district court.
The procedure starts with a written phase where both parties can submit evidence. Subsequently, the court will schedule a hearing where both parties can present their arguments. Witnesses and experts can also be summoned.
Ultimately, the judge will make a ruling and determine whether your claim is justified or not. Both parties have the possibility to appeal the decision. The appeal must be filed within 30 days after the ruling. If your debtor does not appeal, a bailiff can enforce the judgment by seizing assets from your debtor.
How much does a judicial procedure cost in Romania?
The costs associated with a legal procedure depend on the amount of the claim. The court fees for small claims range from 50 to 200 RON, depending on the amount of the claim. In a regular legal procedure, a percentage is charged based on the amount of the claim:
- Up to 500 RON: 8% (with a minimum of 20 RON)
- 501 – 5,000 RON: 7% on the amount above 500 RON
- 5,001 – 25,000 RON: 355 RON + 5% on the amount above 5,000 RON
- 25,001 – 50,000 RON: 1,255 RON + 3% on the amount above 25,000 RON
- 50,001 – 250,000 RON: 2,105 RON + 2% on the amount above 50,000 RON
- Above 250,000 RON: 6,105 RON + 1% on the amount above 250,000 RON
We will always try to recover these costs from your debtor as much as possible. Typically, the court assigns (most of) the legal costs to the losing party.
European Payment Order
Romania is a member of the European Union (EU), which means that it is not always necessary to enforce your claim through the Romanian legal system. If your debtor does not contest the claim, it is also possible to obtain a European Payment Order (EPO).
Through a special procedure, we can submit your claim to the designated court in your country. We only need to fill out a few standard forms. The judge can then issue a European Payment Order.
Afterwards, your debtor has 30 days to contest the claim. If they do not respond within this period, the order becomes final. Subsequently, the payment order is directly enforceable, without involving a Romanian judge. For example, a Romanian bailiff can enforce the payment order by seizing assets from your debtor.
Would you like to know if you can obtain a European Payment Order for your claim? Our international debt collection specialists are happy to assist you.
European Small Claims Procedure
If your debtor objects to your claim of less than 5000 euros, we can start a European Small Claims Procedure (ESCP). This EU procedure is designed to swiftly collect small cross-border claims within the EU.
The advantage of the European Small Claims Procedure is that we can initiate it in your country. We will submit your claim to the court in the country you reside, which will then notify your debtor in Romania. Both parties can then submit their evidence digitally. If necessary, a hearing will be organized via a video call.
Based on this, the judge will make a ruling. This ruling is enforceable throughout the EU (except Denmark).
Once we have an official document with an enforceable title (such as a court judgment or a European Payment Order), we can hire a Romanian bailiff (Executor Judecătoresc) to actually collect your money. In Romania, a bailiff can, among other things, seize the income and bank accounts of your debtor. They can also seize and publicly sell your debtor’s belongings and real estate. You, as the creditor, will be paid from the proceeds of the sale.
Interim measures in Romania
You certainly don’t want your debtor to dissipate funds or assets during or leading up to a lawsuit, leaving nothing to recover after the court’s ruling. That’s why we can secure funds or assets until a final judgment is reached. To do so, we need to file a request with the court on your behalf as the creditor. We must demonstrate grounds to suspect that your debtor will refuse to pay the debt, even with a court judgment.
If the court deems it urgent to secure the assets, it may issue a procedural order (ordonanta presedintiala) without hearing the debtor in advance. The assets will then be immediately placed under custody while the case is pending.
Filing for bankruptcy in Romania
If your debtor is unable to meet their payment obligations, we can file for their bankruptcy. A bankruptcy application is a strong leverage tool to get your bill paid. When your debtor is declared bankrupt, they will lose their business and/or all their personal belongings. Therefore, most defaulters will choose to pay up when a bankruptcy application is filed.
In Romania, it is possible to file for bankruptcy if your debtor has stopped paying. According to the law, this is the case if the payment is at least 60 days overdue.
The bankruptcy application must also be filed with the local or district court. If the application is granted, the court appoints a trustee and establishes a 20-day observation period. During this period, the trustee assesses the outstanding debts and verifies the validity of the various claims.
The trustee then prepares a report and advises whether an accelerated bankruptcy procedure can be initiated. If not, they recommend an extended investigation period and thus a regular bankruptcy process.
Once the debtor is declared bankrupt, the court appoints a curator. This is usually the same person as the previous trustee. The curator will try to settle the outstanding debts by selling the debtor’s assets and paying the creditors from the proceeds.
When settling the debts, secured creditors (such as mortgage lenders) have priority. Employees who are owed wages are paid next. In this phase, the debts that have arisen during the bankruptcy procedure are also settled. Unsecured debts are paid last.
Advice about your case?
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Legal areas of debt collection
Whether you have a customer who doesn’t pay an invoice or are entitled to compensation from someone in Romania, Collection Company can assist you. We provide debt collection services in various legal jurisdictions, including:
- Construction law
- Rental and leasing
- Buying and selling
- Labor law
- Agency agreement
- Damages and wrongful acts
In addition, we work not only directly for clients but also for intermediaries such as lawyers and accountants.
How else can we assist you?
- Reliable advice on contracts and terms
- Credit information on companies in Romania
- Mediation in reaching private agreements and settlements
- Disputes regarding retention of title and right of reclamation
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FAQ: Frequently Asked Questions about debt collection in Romania
FAQ: What documents do we need for a collection in Romania?
If you transfer a claim to us, we prefer to receive as many supporting documents as possible to substantiate your claim. This includes purchase agreements, invoices, reminders, and emails, among other things.
Don’t have one or more documents at hand? Not a problem. Together with our debt collection specialist, you can explore which papers you do have.
If available, we would like to receive the following documents:
- (Copies of) agreements, email messages, fax confirmations, etc.
- A summary of what has been agreed upon
- (Copies of) sent invoices
- (Copies of) sent reminders
- Your general terms and conditions (digital or on paper)
- Proof of delivery
FAQ: Does a retention of title apply in Romania?
Ownership of goods transfers to the buyer upon delivery. With a retention of title clause, this is only the case when the full purchase amount has been paid.
In Romania it is possible to include a retention of title clause in the purchase conditions. The clause must be registered with a specialized agency and is valid for a limited time.
FAQ: Can claims expire in Romania?
In Romania, there is a statute of limitations of three years for most claims, depending on the type of debt. After this period, you can no longer enforce payment of these claims through the court. Please note that the statute of limitations is shorter for certain claims. For retail claims, the statute of limitations is for example only one year.
FAQ: Why Collection Company?
It is not always easy to find a reliable collection agency abroad. After all, you cannot read most reviews due to the language barrier and therefore do not know the reputation of a party. Additionally, you often need to be able to communicate in Romanian if you enter into a partnership with a local party.
If you file your claim with Collection Company, you will have one English speaking point of contact. This collection specialist coordinates the procedure and stays in touch with local parties in Romania.