Methods of Debt Recovery – 3. Payment Order
Fast debt recovery procedures can be useful when used correctly, in cases that allow for it. Used incorrectly, these procedures, instead of speeding up and minimizing costs, can lead to a loss of time and money. Specific criteria for various debts must be taken into account to identify the best and safest solutions for their recovery, reaching the desired outcome.
A payment order is a faster and less costly method than the common procedure based on an uncontested document by the parties and assumed by signature. Through this procedure, the creditor can take the debtor to court to obtain an enforceable title in case of invoking a certain, liquid, and due debt, which involves the payment of a specified amount of money agreed upon in the contract.
Firstly, the creditor is obligated to send a payment summons to the debtor, informing them that they have a period of 15 days from the receipt of the summons to make the payment. The summons must be sent by registered letter with acknowledgment of receipt and declared content.
If the debtor makes the payment voluntarily, the debt is considered recovered, and the potential litigation is thus extinguished.
If the debtor does not make the payment, the creditor can file a request for the issuance of a payment order. The request must include the identification details of the parties, the amount representing the object of the debt, the applicable interest, and the method of calculating them, the legal and factual basis of the payment obligation, and the deadline for making the payment. The request must be accompanied by documents attesting to the amount owed and any other supporting documents.
It is mandatory to attach evidence of the communication of the summons to the debtor, under the penalty of rejecting it as inadmissible.
The debtor’s response is mandatory and must be filed with the court at least 3 days before the trial date. Failure to file a response may be considered by the court as an acknowledgment of the creditor’s claims. The response is not communicated to the claimant; they will become aware of its content from the case file.
The payment order is a procedure that is judged with priority and urgency, so the trial date will be short. In the situation where the debtor does not contest the actual debt, a maximum period for resolving the case is provided, namely 45 days from the submission of the request.
The decision will be made based on the documents presented, as well as the explanations and clarifications of the parties. No other evidence can be administered besides documents. If the debtor agrees to pay, an expedient decision will be issued. The decision is final and has the value of an enforceable title. If the debtor has paid the debt and the creditor acknowledges it, the court will issue a final order to close the case.
If the debtor contests the debt, the court examines the documents in the case and the explanations of the parties. If the debtor’s defense is justified, the court will reject the creditor’s request for an order as unfounded.
If, as a result of checking the request based on the documents and statements of the parties, the court finds the claims justified, it issues a Payment Order specifying the amount and the payment term. If only part of the claims are justified, the court may issue a payment order only for that amount. The payment term must be determined by the court and cannot be less than 10 days or more than 30 days from the date of communication of the order.
The payment order is enforceable. Once drafted, it can be executed by a judicial executor. The appeal does not suspend the execution. A request to suspend execution can be made separately or together with the appeal and must contain serious reasons for suspension.
The appeal against the payment order is the Request for Annulment. The request must be made within 10 days from the date of communication of the decision.
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Vladimir Catargiu – Attorney at Law