Debt Collection Monaco,Monaco Debt Collection

Debt Collection in Monaco

Updated on Wednesday 27th May 2015

Like in any other jurisdiction, there are two stages of debt collection procedures in the Principality of Monaco: an amicable stage and a legal stage. It’s not mandatory to follow both procedures but it is advisable, since the amicable procedure is less expansive and can be followed by a future collaboration with the indebted.

Usually the creditors are trying to contact the indebted before starting any action against them in order to settle the claim through an amicable procedure.
If the above step fails it’s advisable to contact a debt collection agency or a law firm with specialized individuals for this type of activities and with more experience. Those entities are usually receiving a power of attorney in order to be able to act in the name of the creditor. The debt collection agencies are very attractive mostly because are usually paid with a percent from the recovered debts.
In the first stage, the amicable procedure, the agency will contact the indebted in every legal way(by phone, mail, fax or post) and inform him/her regarding the outstanding liabilities, the way and place to deposit, a specific term to deposit it and a presentation of the consequences for not covering those on time. Many of these agencies have, unlike in other jurisdictions, the possibility of action by bailiffs under amicable domiciliary visit from the debtor.
The Justice of Peace is the legal entity which can help in recovering the debts. It is the main body responsible for the process of collection ultimate small civil and commercial claims. The claim can be deposit here only if the debt is contractual and both parties are domiciled in the Principality of Monaco. The jurisdiction of this court in limited up to the sum of EUR 4.600 and unlike ordinary courts is not hearing the parties. In the absence of doubt, the decision is declared enforceable by the clerk and it is not subject to appeal or opposition.
In case of doubt on the judgment both parties must be presented in front of the ordinary court before the magistrate in order to begin the legal procedures which are more expansive and takes longer than the above procedures. It is advisable not to reach this point as in the first stage all the expenses are covered by the creditor and only if the decision is in his favor, the debtor is forced to cover all the liabilities and the costs of judgment.