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Showing posts from December, 2016

HOW TO SUCCESSFULLY COLLECT A DEBT IN PORTUGAL

To evaluate the chances to successfully collect a debt in Portugal, one should ask the following main six questions:

1 - Is the debt business or consumer related?
Business-related debts often have more chances to receive an immediate positive response than consumer debts. So if the debtor is a company, there are more chances of collecting the debt, unless de company is insolvent or out of business.

2 - How old is the debt?
The age of the debt is critical. Despite the fact that in Portugal the period of limitation is 20 years, the older overdue invoices are, the more difficult it becomes to collect.

3 - Are there documentation to support the debt? 
To make a strong case towards the debtor, and to start legal actions to enforce payment of overdue invoices or a contractually agreed payment, it is mandatory on file the documentation that supports the claim. Supporting documentation regarding the debt may consist of contracts, invoices, order forms, order confirmations, debt acknowledgement, …