Letter 166A, a legal instrument to recoup money

lawyer Malta

Debt recovery is not easy, so if you are unable to recover what is due to you, you will need to resort to legal remedies. There is an expedited legal procedure to recover debts, that is you have an option of filing a judicial letter as per Article 166A of the Code of Organization and Civil Procedure from Chapter 12 of the Laws of Malta.

The letter 166A is a judicial letter issued through the Courts of Malta that give the debtor 30 days to respond to it. If the debtor ignores it and fails to answer such letter, this letter will become an executive title, meaning that the sworn content of the letter, being the money due for services rendered or for goods that have been delivered, will have the same effect as it were a final judgement, making the debtor legally obliged to settle the dues. After that, the creditor is allowed to issue warrants and garnishees to collect his dues.

However, if the debtor answers by denying or rejecting the claim, then this cannot become an executive title, and if one wants to recover the debts, the creditor must then file a case before the court. It’s important to note that to file the judicial letter 166A, the debt must be below the sum of €25,000 or if in excess, the creditor can lower his claim and forfeit the difference.

This legal instrument is very strong as it is cost effective and allows the creditor to get an enforceable judicial title within 30 days avoiding lengthy court procedures. However, there are also cautions against misuses such as the letter must be confirmed on oath and on the judicial letter itself, one must clearly inform the debtor of the rights to oppose it. 

It is in the best interest of all parties that debts are sorted out of court to avoid inconveniences, delays in court and hefty legal fees. Sciberras Advocates can assist you in your debt recovery process by starting with a legal letter requesting dues from the debtors and eventually filing a letter 166A at the court if the first legal try is unsuccessful.

Article written by Ms Charlene Sciberras, B.A. (Hons), guest writer, a marketing and business administration specialist with a special focus on corporate, accounting, and legal matters.

Sciberras Advocates founded by Dr Adrian Sciberras, is a law firm based in Malta. The firm prides itself to be multi-disciplinary, innovative and flexible in order to meet the changing times and any challenges in the local and international legal scenario. No matter what private or corporate complex demands are called for, Sciberras Advocates offers practical and cost-effective legal solutions to achieve your desired results. You may reach Sciberras Advocates by phone on +35627040903 or via email on [email protected].

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