Is your company struggling with clients who consistently delay or refuse to pay their invoices? In this blog post, our Law Firm provides valuable insights into effective debt recovery strategies. While the decision on the best approach ultimately lies with you, these methods are shaped by a commitment to fair business practices and cooperation.
One of the most effective, money efficient and straightforward debt collection methods our Law Firm recommends is sending a pre-suit notice letter, either in written form or via email. This serves as a preventive measure and can have a significant impact. Debtors often find it more convenient to settle the debt than face potential expensive legal fees.
Additionally, if the Debtor doesn’t fulfill their obligations even after receiving the pre-litigation notice, they may incur costs associated with legal, notary and executor proceedings, as well as interest on the principal debt, and a fine imposed in accordance with the Law on financial discipline (Official Gazette of Republic of North Macedonia no. 187/13, 201/14, 215/15, 124/19, 122/21 and 129/23) in amount of 2.400,00 denars, or approx. 40,00 Eur per invoice, that needs to be paid to the Creditor.
If the debtor doesn’t respond positively to the pre-suit notice letter, creditors can seek to collect their outstanding monetary claims by proposing the issuance of a notarial payment order based on credible documentation – invoice or extract from company books. This order serves as a notarial public instrument and carries the authority of an executive instrument.
Here’s a breakdown of the decision issuance procedure:
These debt recovery strategies can be vital for businesses facing payment delays or non-payment. However, it’s essential to consult with legal professionals for specific situations. The above mention procedure is fast, relatively non-expensive, and the Creditors can in relatively short timelines, collect they debts.
Our law firm has extensive experience in this field, and over 20.000.000,00 Eur in collected receivables for our clients.
For more detailed guidance and to ensure compliance with North Macedonian law, reach out to our Law Firm.