Portugal's debt collection procedure has many similarities with other jurisdictions, such as Italy and Spain, but in other jurisdictions it diverges.
In matters involving cross-border debt collection, Giambrone & Partners’ experienced team of debt collection lawyers in our Porto office can provide wide-ranging multi-jurisdictional legal advice.
In general, the trading terms of business commonly found in Portugal require payment of an invoice within 30 days. Outstanding invoices that exceed that time- scale can be recovered through the court system or by negotiation between the parties by means of alternative dispute resolution (ADR)
Our lawyers in the debt collection team have extensive experience in achieving settlement of outstanding debt using ADR. Our English-speaking lawyers attempt to resolve the situation initially by mediation that involves both parties discussing their position in the presence of an impartial mediator, trained in negotiation and capable of ensuring that the situation remains calm and moves towards a mutually agreeable settlement.
Another form of ADR is arbitration, this is a more formal procedure involving the oversight of an arbitrator who is able to make a legal binding decision having heard the arguments from both sides. All forms of ADR take place in private and can allow the matter to be resolved in a speedier and more economic manner that resorting to court. Also a negotiated settlement can often preserve the business relationship between you and your debtor.
If ADR is unsuccessful then our experienced Portuguese debt collection lawyers will establish the financial strength of your debtor to determine whether the time and costs involved in court action set against the likelihood of settlement of the outstanding debt makes legal action a viable proposition. If it is decided that the matter should proceed our lawyers will advise as to the best jurisdiction before which it is to best to bring the case after considering all factors, such as the ease of enforcement of a court order in the debtor’s country of origin.
Our debt collection lawyers will offer a tenacious and robust argument in order to achieve payment of the outstanding invoices and where circumstances demand, your debtors’ assets will be seized to satisfy the outstanding debt.
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