Debt Recovery Lawyer in Portugal
Legal support for creditors collecting debts, from out-of-court recovery to enforcement
Credit recovery brings together the out-of-court and judicial means available to a creditor, whether an individual or a company, to recover sums owed.
Out-of-court route
Out-of-court route: the first step before going to court
Before any court action, the out-of-court route involves formally notifying the debtor in writing, with a deadline and the amount owed identified. It is this notice that puts the debtor in default and that serves as the basis for whatever follows.
Payment order
Payment order procedure for debt collection
The payment order (injunção) is a procedure that gives a claim enforceable status, without the need for an ordinary court action.
Up to €15,000, except between companies
It applies to monetary obligations arising from contracts up to €15,000. Where the debt results from a commercial transaction between companies, there is no value limit.
It is an optional procedure, never mandatory: the creditor may choose it or go straight to court action.
Enforcement
Enforcement and seizure of the debtor's assets
With an enforceable title in hand, whether an unpaid payment order, a judgment or another document with that force, the creditor can bring enforcement proceedings and request the seizure of the debtor's assets.
Lodging claims
Lodging claims in insolvency and PER proceedings
When the debtor enters insolvency or a Special Revitalisation Process, the creditor must lodge their claim within the set deadline to be taken into account.
Even a claim already recognised has to be lodged again
Even a claim already recognised by a previous court decision has to be lodged again in this proceeding; it is not exempt.
Limitation periods
Limitation of debts: different periods depending on the type of claim
The ordinary limitation period for a debt is 20 years. But there is a special five-year period for periodic payments, such as rent, interest or instalments.
When an instalment debt falls due all at once, which period applies?
The complexity arises when an instalment debt, such as a loan paid in instalments, is declared due in full because of default.
Which period applies to a specific debt depends on its origin and on how it fell due, and this is not an answer that can be given without looking at the case.
Lawyer or collection agency
Lawyer or collection agency: the difference
Collection agency
It can negotiate and press for payment out of court, but cannot represent the creditor in court, obtain an enforceable title or bring enforcement proceedings.
Lawyer
Follows the case from start to finish, from the initial notice to enforcement, if necessary.
Which route makes more sense depends on the amount at stake, the relationship with the debtor and the debtor's willingness to negotiate.
Viability
Assessing viability before proceeding
Not every debt is worth collecting through the courts. The cost of the proceedings, the debtor's solvency and the existence of attachable assets determine whether enforcement produces a result.
Speak to a Credit Recovery Lawyer
Describe the debt and what has been done so far. We will tell you which route to follow and whether it is worth proceeding.