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Debt Collection in Montenegro

Debt Collection in Montenegro

Updated on Monday 28th November 2016

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The process of debt collection can be difficult mostly due to the lack of knowledge on the Montenegro law that’s why it’s advisable to request the help of a specialized company, either a debt collection agency or a law firm in Montenegro. It is very advantageous to contact a specialized company, mostly because of the fact that the payment is made only if the debt is recovered and consists in a percentage from that debt.
 

Types of debt collection agencies in Montenegro

There are two types of collection agencies in Montenegro: first-party agencies are usually subsidiaries of the original company the debt is owed to and third-party agencies which are separate legal entities contracted by a creditor to collect debts on their behalf for a fee. There is another separated category, the debt purchase agencies which purchase the debt at a percentage of its value, then try to collect it. 

Furthermore, law firms can also help foreign or local investors recover their debts in Montenegro. Our attorneys have helped many clients recover their money either through the amicable procedure or by representing them in the courts of justice.


Debt Collection Stages in Montenegro

The debt collection agency or a law firm in Montenegro  will assist the creditor in its attempt to recover the debt in three stages:  the pre-trial proceedings, the representation during trial and the post-trial proceedings. 
 
In the first phase the debt is tried to be recovered through an amicable procedure by contacting the creditor and establishing a term the debt will be paid and the conditions of payment. This is the pre-trial process. If the creditor agrees with this, the payment can be made through installments or a small amount can be paid instead of the initial amount if the payment is made urgently.
 
In case the debtor is not paying the debt in time, the Montenegro law firm will start to fil in the necessary documents in order to initiate the lawsuit. The law firm will assist and represent the creditor during the process.
 
The request send to the court must be accompanied by the object of the trial such a list with all the overdue invoices, a proof that the debtor hasn’t pay it, a list with the shipping documents and the proof that those invoice were delivered to the debtor on time.
In certain cases, if there is evidence that the debtor confirmed that the payment will be made but that is not happening, that must also be delivered to the Court.
 
In the beginning of the process, the creditor will have to pay the court fees but if the decision is in his favor, than the debtor will be summoned to pay all the expanses encountered during the process. If the decision is in the favor of the creditor, than the debt collection agency or the law firm can help in the process of enforcement.

For assistance in recovering a debt, please contact our Montenegro lawyers
 

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