It is known that due to the international economic context, numerous entreprises from Austria and not only are faced with the impossibility to pay their debts to the suppliers and creditors.
In order to recover them, the claimants must follow specific steps starting with the notification of the debtor in 10 days after the payment deadline. If the Austrian company is not paying, a phone call can be made in other 10 days from the notification. At this point, many companies are paying their debts.
If this method doesn’t have a satisfying result, a debt collection agency is then contacted, usually no later than six weeks from issuing the invoice.
Hiring a debt collection agency is usually advantageous mostly because these agencies are not paid if the claimant is not recovering its pending amount of cash from the indebted and are usually paid with a percentage of these amounts.
The methods used by the agency are usually not different from those used by the claimant, but many debtors are paying their debts once the situation becomes official. Usually, the debt collection agencies have the following responsibilities:
- sending official announcements to the debtor,
- fulfilling all the necessary claims before a trial,
- representation during trial,
- taking all the steps necessary for the enforcement of the decision taken by the court.
Usually, the claimants agree with the debtors to pay their debts in installments or in full after a period of time before a judicial procedure is raised against them.
If the previous methods are not working, the claimants are advised to start the court proceedings by empowering the debt collection agency to pursue or initialize the actions at the Commercial Court.
The average waiting time for a decision in such a case is six weeks, if the debtor is not contesting the claim. If the debtor is contesting the decision, an appeal can be raised in the Supreme Court and the period of time until the final decision is raised with another six weeks.
The enforcement procedure may start if the court takes this decision. For accomplishing it, a bailiff is informing the debtor regarding the decision and tries to get all the information regarding the debtors’ assets that can be auctioned, if there are not sufficient funds to cover all the claims. The debtor’s property is seized if necessary (if the claim was not paid) and its assets are offered in a public auction in the attempt to cover the claims.
All the creditor’s claims are paid in the order of their deposit.
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