When your customers are late in paying their invoices, there are several procedures that allow you to assert your rights as a creditor. Between amicable and judicial recovery, how to choose? Which provider to choose? We guide you!
Differences between amicable and judicial recovery
In order to obtain payment of your unpaid invoices, you have the option of opting for an amicable recovery procedure or a judicial recovery. Before choosing, you should be aware of the differences between the two.
Thus, amicable collection consists of using various means of communication such as telephone calls, e-mails, letters such as the reminder letter or formal notice, with the aim of reminding your debtor that he must pay you. a bill.
Judicial recovery has a more legal aspect because it involves the intervention of a judge who must issue an enforceable title such as an injunction to pay, a summary provision or a subpoena. This debt collection method is therefore more « aggressive » because it involves justice. It may also require the use of professionals such as a lawyer to represent you in court or a bailiff who will ensure that payment is made following the judge’s request. The latter can intervene in a large number of situations as explained on the 123 immo blog.
Read also: How to repay debts?
How to choose between the two procedures?
To make your choice between amicable recovery and judicial recovery, there is different factors to consider whose :
- Your relationship with the customer : Is this a new or a long-time customer? In the first case, it may be tempting to go directly to the courts so as not to waste time with bad payers. On the other hand, in the second case, it is preferable to engage in dialogue and opt for amicable recovery. You will be able to better understand why your invoice has not been paid and find solutions that work for both parties. Debt collection can be carried out via installments, for example.
- Payment history : Is this your client’s first late payment or does he always pay late? If it’s the second situation, the legal process can send a strong signal that you’re tired of always having to wait to get paid. On the other hand, if it is the first time, show yourself more flexible with an amicable recovery, your client may just have had an oversight or temporary difficulties.
- The amount of debt : The amount at stake is decisive in your choice. If it is not very high, debt collection by negotiation is preferable because if you opt for the legal system, it may cost you more money than you will earn by recovering your debt. In addition, the litigation procedure will have mobilized your time or even personnel that you could have used more wisely. Conversely, if the amount is so large as to have negative consequences on your cash flow, you should not hesitate to initiate legal recovery.
- The due date : A debt recovery procedure can be launched from the moment the payment date has passed. However, if it has only been a few days, amicable recovery is the first procedure to put in place. On the other hand, if the situation has lasted for several months, only a judge will be able to allow you to collect what is due to you.
The choice between the two procedures is therefore specific to each situation.
Get support for the amicable recovery of your debts
It is possible to be accompanied in order to recover your debts. Indeed, many bailiff’s offices offer a specific follow-up in order to recover your debts as soon as possible. However, care should be taken in choosing your service provider. Because according to a recent study by the DGCCRF dating from March 2018, (aiming to control the practices of collection specialists) 32% of the 50 establishments had non-compliances.
Good to know also for the debtor:
Many consumers attest to having received such a letter when they are sure that they have paid the bill in question or have canceled their contract. If so, the first question to ask yourself is whether you are really in debt. If you have paid all the fees you owe for your subscription, or if, on the date of this alleged invoice, you have already terminated your contract in accordance with the forms and conditions provided for in the contract or in the general conditions of sale, then you are probably not in debt.
It is up to the person who claims to be the creditor to prove that the debt is « certain », that is to say undisputed. Therefore, the first thing to do is to ask the collection company to provide proof of the debt.
Also read: Can you claim a debt after 10 years?