Debt Collection in Milan, Italy | Debt Recovery Legal Services 
Dimarco & Partners International Law Firm

Our Lawyers are specialized in debt collection in Milan (Milano) in favor of foreign entities. Our experience in this field permits us to recollect significant amounts in favour of multinational and medium small companies. Our Law Firm already takes care of the debt recovery, related mostly to unpaid invoices, in favor of multinational companies handling more than 1.000,00 cases per month. We believe that the approach in debt recovery has to be methodological and for this reason we divide our activities in precise phases:

• Analysis of the debtor with registered address in Milan;
• Extrajudicial phase: drafting of a formal legal notice of payment against the debtor in Milan;
• Court actions in Milan;
• Enforcement procedure on properties, bank account or credits belonging to the italian debtor in Milan.

After the analysis of the debtor resident in Milan, our Lawyers draft the formal legal notice of payment. In this stage our Law Firm will try to reach a transaction with the debtor, avoiding the judicial action. The importance of this phase is not just warning the debtor that a judicial action is going to start but it has also a further meaning. Commercial credits have a prescription period of five years: it means that if the creditor waits more than five years without interrupting the prescription, his right will be extinguished. The legal notice of payment has also the function to interrupt the prescription period (ex. a credit arisen on 1st of November 2010 it will expire on 1st of November 2015; if a legal notice of payment is sent on 25th of October 2015, the prescription period will run again and the credit will be extinguished on 25th of October 2020).
                                                                THE COURT ACTIONS IN MILAN:

• Decreto Ingiuntivo (Order of Payment) for certain, liquid and payable credits:

It is the most common procedure to recover a credit arising from unpaid invoices. In Italy this Court action is called "decreto ingiuntivo" and it is developed inaudita altera parte. Our Lawyers submit the order of payment providing the following documentation:

1. unpaid invoices translated into italian and authenticated;
2. documents of transport (if there is a delivery of goods);
3. contract or confirmation order;
4. recognition of debt (a written document from the debtor that admits the debt), even if this is not compulsory. The presence of this document permits us to require the injunction temporarily enforceable.

Once we receive the documentation, we firstly check the italian jurisdiction and if the Court of Milan is the competent one. This preliminary work, made by our debt collection lawyers, has a crucial meaning: in case the case is strong but it is started a court trial without duly checking the jurisdiction, it is possible that the case would be lost and the Client condemned to pay the legal fees to the debtor.
After the preliminary check, our Lawyers commence the debt collection procedure: the decreto ingiuntivo is delivered to the Court of Milan or to any other Court in Italy (it can be done online from our telematic software) and If there is a recognition of debt the order of payment will be issued temporarily enforceable and our Lawyers will be entitled to start the enforcement immediately. If this document is missing, the provision is not temporarily enforceable. The Court of Milan normally takes 2/3 weeks to release the Court Order. Once it is released from the judge, we provide the notification (through telematic software or through the bailiff, depending if the debtor is a corporate entity or an individual) and the debtor has 40 days to file an opposition to the decreto ingiuntivo starting an ordinary action. If the opposition is not filed in the term of 40 days, the order of payment becomes enforceable and it is considered as a definitive judgement.
Once the order of payment is issued, it entitles the creditor to recover the capital sum, the commercial interest​ - between 7.5% and 8% per year - the out of pocket expenses (court fees and other out of pocket expenses related to the order of payment) and in the fees of the lawyers which are by the Court.

•  The ordinary action:

In case that the credits doesn't arise from an unpaid invoice it is not probably certain, liquid and payable. The typical case for corporate entities is the wrongful breach of  contract. In these kind of legal issues the agreements often contains a penalty clause to quantify the amounts dued from the part that terminated the contract unlawfully. Even if at first sight there is a clear determination of the credit, it is not possible to ask for an order of payment because the court has to ascertain the credit and the liabilities, not considering it certain, liquid and payable. For this reason it will be necessary to start an ordinary action in front of the court. It is possible to check the various phases of the ordinary action in the section Litigation in Milan.
Please also note that ion this kind of action, if the credit does not overcome the amount of euro 50.000,00, in order to start a court trial to recover the credit, it is a compulsory condition to start the procedure of "out of court negotiation", called in italian procedura di negoziazione assistita.
In case the debt collection in Milan is positive and we obtain an enforcement order, our Lawyer proceed with its notification, attaching a further deed called precetto, and after ten days from the positive reception of the writs from the debtor, they can enforce the credit.

• The enforcement:

The last phase of the debt collection in Milan, the enforcement, is very different from many other European countries. In Italy most of the activities are provided by the italian attorneys and the bailiff is only an officer of the Court, with limited powers. It is important to specify that once the creditor has a positive ruling (definitive or temporary) there is a need to choose the kind of enforcement to be promoted choosing between:

1. Enforcement of the bank accounts or credits belonging to the debtor resident in Milan;
2. Enforcement of the real estate belonging to debtor resident in Milan;
3. Enforcement of goods belonging to the debtor resident in Milan;

The Choice is important as any of these kind of enforcement needs a different procedure, court fees and expenses. It is of course possible to promote more than one enforcement per time.
We look forward to cooperate with You.

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