Following the issuance of the initial demand for payment, the subsequent actions can vary depending on the response or actions taken by the debtor. Typically, after the initial demand for payment in:
Out-of-court proceedings:
Upon the debtor's acknowledgment of the debt and willingness to settle, both parties may opt to resolve the outstanding amount through a mutually agreed-upon payment plan. Such an agreement, when formalized in the presence of a notary public as a debt acknowledgment statement, holds legal weight as an executive title. This document serves as a formal recognition of the debt and streamlines potential future enforcement measures.
In out-of-court debt collection, negotiations or proposals for alternative settlements may arise, aiming to achieve a consensus between the parties. This could involve negotiating a payment schedule, considering a reduced settlement amount, or exploring alternative arrangements to resolve the outstanding debt. Notably, the existence of remedies for non-performance, such as mortgages, pledges, or liens, presents avenues for the creditor to pursue debt recovery through compulsory execution against the debtor's property or that of a third party, enhancing the creditor's ability to recover the debt.
Court proceedings:
Should the debtor fail to respond to the initial demand or dispute the debt, escalation might become necessary. The creditor may opt to issue subsequent formal notices or proceed to initiate legal action for debt recovery through the appropriate Albanian court.
Initiating legal action entails filing a claim in compliance with the legal procedures outlined in Albanian legislation for debt collection. This process necessitates the presentation of evidence supporting the claim and adherence to the Albanian legislation in force.
In the event of a favorable court decision in favor of the creditor, enforcement measures become viable to recover the debt through the Bailiffs Officers. These measures could involve asset seizure, freezing of bank accounts, or other court-sanctioned actions aimed at compelling the debtor to fulfill their payment obligation.
It is imperative to adhere to the legal frameworks and procedures delineated within Albanian legislation for debt collection.