A foreign investor may find difficult to recover a debt from a business partner in Malta because he doesn’t know the local legislation related to debt collection and he may have to wait long years until he finishes all the steps of the procedures, especially if he chooses to go in court.
In case you have to recover a debt, you may contact a Maltese lawyer, who will explain you the legal procedure and will estimate how long it will take to recover your debt. If you choose to go to trial, you may need to wait a few years and go through all the stages of a litigation and finally there is no guarantee you will recover the money. A more efficient way is to choose the debt collection method, through a debt collection agency or a specialized lawyer, who may recover your debt much sooner. This way, you won’t have to insist and chase the debtors on your own because it is a time consuming and stressful way.
The amiably way, the best method before litigation
Before trying the litigation method, you should choose the amiably way, that means you have to let a debt collection agency or a specialized lawyer handle your case. He will send a letter, written in a professional manner, to the debtor and he will ask him to pay the debt. This action is generally more impressive for a debtor than a call and he may accept to pay the debt after he finds out that he will have to pay the cost of the debt recovery if the payment isn’t made right away.
When you decide to hire a debt collection agency or a Maltese lawyer, you have to prepare the documents proving the debt you have to recover – invoices, statements, the correspondence with your debtor etc. It is recommended to hire a specialist as soon as possible because, if the time passes, it is more difficult to recover a debt because the debtor may change its address or enter into the liquidation procedure or bankruptcy.
The trial is the ultimate way of recovering a debt because it is more time consuming and the debt collection is not guarateed. Our lawyers will advice you on the characteristics of each procedure and the legal steps to follow for each case.