It is almost always more profitable to conclude an arrangement with the debtor and agree on the schedule of repayment of the overdue receivables. However, what is needed for it is good will of both parties: the creditor and the debtor. If the creditor has already exhausted all possibilities of amicable recovery of the debt and in spite of it did not recover their money, the only way left is to pursue the claims in court.
What costs are connected therewith? It depends on the value of the claim. Unfortunately, the regularity is as follows: The bigger the amount of the overdue payment of the business partner, the more we have to invest in recovery of the claim. The amount of the costs of legal representation as well as the costs of the court entry fee are regulated by relevant Regulations of the Minister of Justice.
The basic fee that must be paid by the creditor is the court entry fee. For the debt up to the amount of PLN 10,000.00, the fees are fixed and amount from PLN 30.00 to PLN 300.00. In case of claims above PLN 10,000.00, the rates are calculated as a percentage of the value of the subject of the dispute, usually 5%; as a maximum, the amount of the court entry fee may be equal even to PLN 100,000.00.
The Regulation of the Minister of Justice also describes in detail the costs of legal representation and for example for the debt of the value from PLN 5,001.00 to PLN 10,000.00 they amount to PLN 1,200.00. The entrepreneur who wants to pursue the debt of the value from PLN 10,001.00 to PLN 50,000.00 before court will pay the amount of PLN 2,400.00 to the lawyer. If the value of the debt stays within the range from PLN 50,001.00 to PLN 200,000.00, the legal representation will cost us PLN 3,600.00, while above PLN 200,001.00 this expenditure amounts already to PLN 7,200.00. Nevertheless, they are minimum amounts that may differ within different legal offices and this is why it is worth examining the offer on the market carefully.
If at a given moment the entrepreneur has problems with incurring of such costs, they may rely on the debt collection company, specialised in pursuing of claims resulting from business transaction, accepting the order, to propose crediting of the costs of the court entry fee. Such a possibility is available to companies commencing cooperation with Kancelaria Prawna Pragma Inkaso SA.
These costs may be significant, so the entrepreneurs ordering debt collection to a company having legal office are in the best situation. Before proposing of application to court for issuance of the order for payment, such company usually exhausts all methods for amicable enforcement of the claim. However, the lawyers do not hide the fact that usually already on the stage of conducting of negotiations they prepare the documents which in case of a failure of the negotiations will be useful for obtaining of the order for payment.
If we have taken care about good documentation of the claim, it is highly probable that we will obtain the order for payment before court. In such case, on the basis of the Payment Term Act, we will be able to transfer the costs of pursuing of the claim, including also court fees and legal representation costs, to the debtor, which we have been already writing about in the text: The debtor may cover the debt collection costs.
Published on: 9 November 2016