Do you have any outstanding credit collection in Cyprus? Rely on Invenium!
The out-of-court credit collection procedure in Cyprus begins with a notice of complying letter. It is written by a local lawyer and intimates a requesting payment within 10 days.
If the out-of-court credit collection procedure is unsuccessful, a court order of payment can be prosecuted by law. Cyprus, as a part of the European law regulation, follow the injunction execution law for the international credit collection.
There is great confidence in the Cypriot legal system, which is considered efficient because it combines the common sense and wisdom of Common Law with the presence of constitutional guarantees for the protection of rights.
Cypriot courts possess the necessary powers to enforce rulings and orders issued. If the receivable is contested, a monitory procedure is activated which starts with the preparation of a brief against which the debtor has 14 days to file a statement of defence.
In some cases, it is appropriate to present a provisional order against the debtor’s real estate or to freeze the current accounts. If the judicial procedure takes longer than expected, it is always possible to follow an out-of-court credit collection action and trying to make a deal without the need to proceed in court.
If the debtor takes a position against, the creditor can submit a claim in memory full of the most important details about the case. Due to this method, the debtor has only 14 days to be defended by a lawyer.
At this point, if the judge believes that the preliminary issues have been resolved, a future date will be set for the trial: as a general rule the losing party will pay the legal costs of the winner.
When the sentence has been issued, the court can proceed to seizure and sale the immovable or movable property – if there is no spontaneous payment – of the debtor. In the alternative, it is always possible to proceed with the debtor’s bankruptcy procedure.