Have you exhausted all amicable collection methods to obtain payment of your unpaid bill? Then it’s certainly time to take the matter further and turn to enforced debt collection. Forced collection, or judicial collection, involves obtaining an enforceable court decision. This means that in order to obtain repayment of its debt, the creditor company can, for example, ask a judicial commissioner (formerly a bailiff) to set up seizures.
This option of enforced collection is very important for the creditor. On the one hand, the threat of legal proceedings may be enough to obtain repayment of the debt in the amicable phase.
On the other hand, compulsory debt collection offers a highly effective solution for creditor companies that are unable to reach an amicable settlement with the debtor. So what are the legal collection procedures? What methods of enforced collection are available to creditors? What are the advantages of enforced debt collection? We explain everything.
What are the legal collection procedures?
To resolve a dispute over an unpaid debt on the part of the debtor, there are four possible legal collection procedures, depending on the amount of the unpaid debt and the situation:
- injunction to pay ;
- simplified procedure ;
- provisional injunction ;
- the payment summons.
It should be noted that regardless of the enforced collection procedure chosen, the debt must be certain, liquid and due, and not time-barred.
Payment orders
An order for payment is a simplified debt collection procedure. It is possible to apply for an injunction to pay when the debt arises from a contract, a bill of exchange or a Dailly slip. The application for an injunction to pay is sent by the creditor to the court using a form to be completed. The court with jurisdiction depends on whether the claim is civil or commercial. The judge may issue :
- an order of rejection, if it considers that the creditor is not in the right;
- an order for partial rejection, if it orders the debtor to pay less than the amount claimed by the creditor;
- an order for payment, if it orders the debtor to pay the full amount requested by the creditor.
In all cases, the order must be notified to the debtor by a bailiff within 6 months of the judge’s decision. The debtor may then contest the decision by lodging an opposition within one month of notification. The cost of an injunction to pay is approximately €50.
Simplified procedure
Like the injunction to pay, the simplified procedure concerns disputes relating to the performance of a contract. This is the case with an unpaid invoice. However, the simplified procedure is reserved for disputes involving an amount of less than €5,000. The creditor must file a claim on the online platform for small claims. A bailiff sends the debtor an invitation to take part in the procedure by registered post with acknowledgement of receipt. If the debt is not paid within one month, the creditor can apply to the court to obtain a writ of execution. The cost of the procedure is approximately €50.
Provisional injunction
The provisional summary procedure is a rapid debt recovery procedure based on urgency and the need to make provision for repayment. Recourse to this procedure is only possible if the debt is not seriously disputable, i.e. if the creditor has sufficient evidence to demonstrate the existence of an unpaid debt. In this case, the judge will issue an order that is automatically enforceable on a provisional basis. The creditor may entrust the case to a bailiff for the implementation of forced collection methods.
Summons for payment
Finally, it is possible to summon the debtor to pay the outstanding debt. This procedure is longer and more costly, as it involves a writ of summons on the merits. After the parties have exchanged views, the judge makes a decision. The judgment must be served on the debtor by a bailiff. Once the appeal period has elapsed, the judgment becomes enforceable. Consequently, if the judgment orders the debtor to pay all or part of the sums claimed by the creditor, the debtor must comply with this decision. If the debtor fails to do so, the creditor may ask for the seizures to be carried out.
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Forced collection methods
There are two main types of enforced debt collection. Forced collection by a bailiff and forced collection by a specialised debt collection company. The methods of enforced debt collection used by a bailiff are :
- seizure of movable and immovable property;
- entering bank accounts ;
- seizure of income and wages ;
- seizure of financial assets.
This involves taking the sums owed directly from the debtor’s assets following a court decision that has become enforceable. You also have the option of entrusting enforced debt collection to a debt collection company acting on your behalf. In return, this company receives a commission on the amounts recovered.
Forced collection: the importance of legality and regulation
If you wish to initiate compulsory debt collection proceedings, you must ensure that you comply with the rules in force, in particular those set out in the Code of Civil Procedure.
It is essential to respect the rules on limitation periods and the burden of proof, as well as the debtor’s rights. You also need to build up a solid case based on the various documents in your possession: contract, signed quotation, signed order form, invoice, reminder letter, email exchanges, copy of the formal notice, etc.
The courts only intervene as a last resort. They therefore appreciate it when they see that the creditor has done everything possible to find an amicable solution beforehand. In addition, failure by the creditor to comply with procedural rules can have very serious negative consequences, such as rejection of the claim, nullity or an order to pay damages to the debtor.
The advantages of enforced collection
Forced collection is the ultimate form of debt recovery. Although it is often synonymous with a more complex procedure, delays and costs, it does offer certain advantages:
- more efficient collection processes;
- protection of the creditor’s financial interests ;
- reducing the risk of default by recalcitrant debtors;
- maintaining the integrity of the economic system and commercial credit.
Generally speaking, enforced collection significantly increases the chances of recovering debts.
Conclusion
Forced collection is a highly effective solution for recovering unpaid debts. It is therefore of real interest to creditors from both a financial and economic point of view. However, to benefit from the advantages of enforced debt collection, it is essential to comply with legal procedures. Calling on the services of debt collection professionals can therefore prove very useful.
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