When amicable collection efforts are unsuccessful, resorting to legal means may be the only viable option to secure payment.
Judicial debt collection is a legal process by which creditors seek to recover amounts owed through the court system.
Read on to find out how this process works, from the beginning to the execution of the court decision. Get a comprehensive overview of how your company can deal with unpaid debts effectively and within legal parameters.
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What is judicial collection?
Legal collection is a specific type of turkey whatsapp number data with the main objective of judicially demanding payment of a debt or monetary obligation.
It is used when a person or company in debt does not voluntarily comply with their financial obligations , even after extrajudicial collection attempts, such as: notifications, protests or direct negotiations.
What is the difference between judicial collection and extrajudicial collection?
The main difference between judicial collection and extrajudicial collection lies in the method used to recover the debt or financial obligation.
Check below the definition of each one and when they should be applied:
Extrajudicial collection
Extrajudicial collection involves the first in raet’s automation story to recover a debt or financial obligation without resorting to the court system. This may include:
- Direct contact with the debtor;
- Formal collection notices;
- Negotiated payment agreements;
- Use of third-party collection services, such as collection agencies or internal collection departments of creditor companies.
Judicial collection
Judicial collection involves using the legal system to recover an unpaid debt or financial obligation. This measure is usually maldivian lads when out-of-court collection efforts have failed or when the amount of the debt justifies the cost and time involved in a legal proceeding.
Judicial collection follows legal procedures established by the legal system and its objective is to obtain a court decision that obliges the debtor to pay the debt.
