Advokátní kancelář MN-LEGAL



Many creditors are faced with the difficult choice of whether or not to assert their claim when initiating inso...
We are pleased to inform you that Mališ Nevrkla Legal changed its seat and now operates at new offices. Since F...
Protection of proprietary rights versus public interest in general usage of service road. The criteria def...

Debt Collection and Management of Receivables

Since the law on court-appointed debt collectors and enforcement activities came into effect, recovering debts by legal means has been much more effective than it was previously.

Effecting the settlement of payment obligations on the basis an enforceable ruling (most frequently a court judgment) now only takes months instead of years, as was the case beforehand. One thing that has had a significant impact on the psychology of debtors is the simple fact that an enforceable judgment, in conjunction with effective cooperation between a law firm and a private debt collector, is now a powerful weapon, which can even be used against "professional" defaulters, who had previously been very successful in resisting claims against them.

Nevertheless, this does not mean that creditors should simply rely passively on the aforementioned facts, but should also work preventively with a law firm in actively managing their receivables, because it still takes too long to obtain an enforceable court ruling.

Incidentally, even in the case of an enforceable ruling (especially in insolvency proceedings), it is not possible to collect anything if there is nothing left to collect.

The proper management of receivables includes legally securing the debts one is owed, minimizing the number of overdue receivables, sending prompt reminders to debtors, contesting legal transactions by debtors that cause damage to creditors, the regulated cession of receivables, and setting off the debts one is owed.

Mališ Nevrkla Legal believes that a proactive approach towards collecting debts and managing receivables is the basis for success in this area. In particular, this approach includes the following legal services:

  • negotiations with debtors on overdue debts (reminder letters, the acknowledgement of debts, agreements on repayment schedules, settlement agreements);
  • legal actions preventing the deterioration of the creditor's legal position and the recoverability of his receivables;
  • recovering debts through the court and subsequent enforcement proceedings, cooperating with private debt collectors (identifying and freezing debtors' assets, selecting the best way to enforce a ruling);
  • preparing security instruments (e.g. mortgage contracts, guarantees, bills of exchange given as security, contractual penalties, notarial deeds and deeds drawn up by debt collectors);
  • advising on legal transactions with receivables (the cession of receivables, setting off receivables, pledging receivables, sale and capitalization of receivables);
  • representing creditors in insolvency proceedings (petitions for bankruptcy orders, filing claims for receivables and incidental lawsuits).