Foreign debt collection – how to collect debts abroad?

Foreign debt collection allows you to recover debts from contractors abroad. It differs from domestic debt collection due to factors such as language, court procedures, and business relationships. See what you can do to increase your chances of successful international debt collection.

What Is Foreign Debt Collection And When Should You Start It?

Foreign debt collection is the process of recovering debts from entities based outside Poland. It applies to partners from both the European Union and non-EU countries. Its success largely depends on proper preparation.

You should consider starting foreign debt collection when:

• The invoice due date has passed and payment was not made.
• The business partner avoids contact or refuses to pay.
• Previous settlement attempts have failed.
• The debt amount is significant for your company’s finances.

Do not wait with cross-border claims. The sooner you act, the better your chances of recovering the money.

Preparation Stage – Documents Review And Legal Verification

Before starting debt collection, you must prepare full documentation and check the debtor’s legal status.

Key preparation steps:

• Gather contracts, invoices, correspondence, and payment requests.
• Confirm the debtor’s full details and business address.
• Check the statute of limitations (e.g. Germany – 3 years, France – 5 years).
• Review contract clauses on jurisdiction and applicable law.
• Check if you can file the claim in a Polish court.

A professional analysis at this stage helps avoid legal mistakes and financial losses later.

Amicable Debt Collection – The First Step to Recover Your Money

Amicable debt collection is often the cheapest and fastest way to recover debts. Its goal is to persuade the debtor to pay voluntarily, without court action.

Most common amicable debt collection mechanisms include:

• Written payment demand in the debtor’s language (best by registered letter with notice of delivery).
• Phone or email contact to agree on a payment plan.
• Offering a settlement or payment in instalments.
• Warning about possible listing in a foreign debtors registry.
• Using international debt collection agencies.

Amicable debt collection doesn’t always succeed, but it can be an effective way to recover debts — especially when the delay results from late payment rather than a refusal to pay

European Payment Order – Fast Procedure Within the EU

When amicable debt collection fails, creditors from EU countries (except Denmark) can use the European Payment Order (EPO) procedure.

Key benefits of the EPO:

• Simplified, automated process.
• No need for enforcement approval in the debtor’s country.
• Relatively low court fee (usually around 5% of the claim value).
• The case can be handled from Poland — no need to attend foreign court hearings.

European Payment Order – Steps:

1. Submit the A form with documents and the court fee.
2. Court issues the payment order.
3. The payment order is delivered to the debtor.
4. Wait for possible objection (30 days).
5. If no objection — the Payment Orderbecomes enforceable.

Debt Collection Outside the European Union – Procedures, Conventions, Risks

When dealing with debtors outside the EU, debt recovery requires more effort. Knowledge of international and local laws is necessary.

In such cases, the following key points should be considered:

• Whether international agreements apply (e.g. Lugano Convention).
• Contract clauses on jurisdiction and applicable law.
• The need for certified translation of documents into the debtor’s language.
• Requirement for document legalisation or apostille.
• Handling court cases abroad with local legal representatives

Effective debt collection in non-EU countries often calls for cooperation with law firms experienced in international cases and local regulations.

Foreign Debt Enforcement – Regulations and Costs

Once you have a final court judgment or European Payment Order, you can start enforcing the debtor’s assets abroad. This is a key step in the debt recovery process.

Foreign enforcement may include:

• Filing a request with the local bailiff (bailiff, huissier, Gerichtsvollzieher).
• Translating and legalising documents if required by local law.
• Monitoring the enforcement with the help of a local lawyer or agent.
• Paying extra court or enforcement fees

Foreign Debt Enforcement – Example of Possible Costs

Why Use Professional Help?

Handling international debt collection on your own carries a high risk of mistakes, wasted time, and unnecessary stress. That’s why it’s smart to entrust your case to a law firm specialising in such matters.

Key benefits of working with a law firm:

• Experience in cross-border cases.
• Knowledge of local laws and court deadlines.
• Access to foreign partners — attorneys, translators, bailiffs.
• Full legal support from payment demand to enforcement.

Foreign Debt Collection – Summary

Foreign debt collection is a complex process. It requires precision, legal knowledge, and flexibility. Key stages include: preparing documents, amicable attempts, using the European Payment Order (within the EU), or local court proceedings (outside the EU). The final step is effective enforcement. Professional support improves your chances of success.

Do you have a debtor abroad and don’t know where to start? Contact our firm! We handle international debt collection from the first demand for payment to enforcement.

FAQ About Foreign Debt Collection