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.
Cet article est à titre informatif seulement et ne doit pas être interprété comme un avis juridique.
Article rédigé par Mme Charlene Sciberras, B.A. (Hons), rédactrice invitée, spécialiste en marketing et administration des affaires avec une attention particulière aux questions d'entreprise, de comptabilité et de droit.
Sciberras Advocates, fondé par Dr Adrian Sciberras, est un cabinet d'avocats basé à Malte. Le cabinet s'enorgueillit d'être multidisciplinaire, innovant et flexible afin de répondre aux évolutions et aux défis du paysage juridique local et international. Quelle que soit la complexité des demandes privées ou d'entreprise, Sciberras Advocates propose des solutions juridiques pratiques et rentables pour atteindre les résultats souhaités. Vous pouvez contacter Sciberras Advocates par téléphone au +35627795222ou par courriel sur [email protected].
