If you are a company based in the UK, the debt recovery options can seem a bit of a minefield.

We operate a UK based debt recovery company and have set up a Division specifically to deal with Debt Collection in France.

Debt Collection in France can be very different to the UK and we believe you need the involvement of a Debt Collection company who are experienced in collecting debts in France.

In terms of using the French legal system to collect a debt from a French company owed to a UK business, there are no hard and fast rules.

Every debt needs to be researched.

A usual course of action taken by us here at GB Pimney is to send a recorded delivery letter to debtor requesting payment – Final Demand/Letter Before Action.

If payment is not forthcoming and the debtor is a commercial entity:

The creditor can seek an Injunction to Pay a contractual debt (Injonction de Payer). In these cases the relevant arena is the Commercial Tribunal (Tribunal de Commerce).

The law in France states that when seeking an Injonction de Payer, the creditor must provide clear proof of the debt. The paperwork submitted to the Tribunal de Commerce must include a signed contract or purchase order, along with relevant invoices and repeated attempts to secure payment. If the debt is in doubt in any way whatsoever, the judge may rule against the creditor and not grant an Injonction de Payer.

The debtor is not required to be present at such hearings.

All being well with the documentation presented, the judges issues the injunction which is served on the debtor by a Huisssier de Justice (Court Bailiff). This must be completed within 6 months of the injunction being granted or it becomes null and void.

After being served by the Bailiff, the debtor has 30 days in which to contest the injunction. If it is not contested, the injunction becomes executable. The creditor may now take steps to act on the court’s decision. If this is the case, the Huisssier de Justice will enforce the court’s decision on the debtor.

If the debtor contests the injunction within the permitted 30-day timeframe, the issue becomes contentious and the judge will summon both parties to a hearing. Rendering decisions on these types of hearings can be time consuming (1-3 months) and also incur the cost of legal representation, so it’s obviously in the creditor’s interest that the debt is either settled after the LBA is sent or the injunction isn’t contested.

Another option to recover dents is via a Summary Proceeding (Action Referé). It can be a quicker process, as there are summary proceedings at least once a week in all jurisdictions and in some cases, two. It is, however, more expensive, as again, legal representation at the hearing is required. The debtor may be served notice to appear within a couple of days of the hearing, at a date chosen by the creditor. Unlike the Injonction de Payer, the debtor must either be present or represented on the day. Should the debtor fail to appear, a default judgment in the creditor’s favour may be granted. If the debtor does appear or is represented, judgments are usually swift, 7-14 days of the hearing. In some instances the courts may render a judgment on the day of the hearing.

As with the Injonction de Payer, the debt must be absolutely clear. If there’s doubt as to the validity or extent of the debt, the judge has no jurisdiction to render a decision that’s favourable to the creditor. If the matter is complicated or the debtor contests the claim, the judge will in all eventuality declare the summary jurisdiction incompetent. Should this happen, then the creditor must issue main proceedings by Writ of Summons (Assignation). If the decision is favourable to the creditor, the judgment may be immediately executed even if the debtor appeals the decision. This is a successful method in recovering debts, but does come with legal costs and should only be considered once all the cost/benefits have been analysed.

Writ of Summons (Assignation). The proceedings take a minimum of six months and are used in cases where the issues are complex, or where the debtor contests liability. They are long, drawn out and costly proceedings that, quite frankly, unless the debt being chased is in excess of 10,000 EUR is not worth the time, effort or financial investment.

As in all cases in France when it comes to debt recovery, the relevant jurisdiction is the one where the debtor is based. So, if you’re owed money from a company based in Paris, the proceedings must take place in Paris.

At GB Pimney, we will manage this process from "Cradle to Grave" and take the pressure of understanding the French legal system away from you.

In short, if you are a business in the UK and are owed money from a company in France, we are the experts to use.

Remember, we specialize in collecting debts in France.

For more details contact: -

Url : http://www.gbpimney.co.uk/legal-debt-collection-france/

Company Name: - GB Pimney

Author Name : - Gregg Jones

Email:- gregg@gbpimney.co.uk