Settlement with the debtor

Amicable debt collection

Amicable debt collection is characterized by a conciliatory approach to the debtor. Its aim is to persuade the debtor to voluntarily, out of court, settle his obligations to the creditor. The result of properly conducted amicable debt collection is the development of settlement terms that are favorable to both the debtor and the creditor when concluding the settlement. Thanks to such an agreement, the dispute is ended amicably. After signing the settlement, the parties undertake to comply with its provisions that the parties jointly developed during the negotiations.

Concluding such a settlement means that both parties agree to certain concessions worked out in the out-of-court settlement agreement, which gives the parties to the dispute the opportunity to reach an agreement outside the court. Creditors are often aware of how time-consuming and nerve-wracking it is to pursue their claims in court. The most common settlement provisions negotiated for debtors include, for example, the possibility of repaying the obligation in installments, deferring the payment deadline, waiving the claim to part of the obligation, withdrawing the lawsuit in court or waiving the interest claim.

Recognition of an obligation by the debtor

Importantly, in the signed settlement, the debtor recognizes his obligations as undisputed. Such a statement by the debtor confirms the existence of a claim in favor of the creditor. The concessions that a creditor or debtor agrees to depend on the circumstances of a particular case. An important element is conducting effective negotiations regarding the terms of the settlement.

Reaching a settlement is a much faster and cheaper solution than going to court. Lawsuits can last for a long time, but an out-of-court settlement can be concluded at any time.

Debt recovery and settlement

Many entrepreneurs struggle with the problem of unreliable contractors who do not pay on time. It is worth having knowledge about all possibilities of recovering money. It should be borne in mind that the settlement allows for the simplification of any subsequent court proceedings. It is worth considering the option of a settlement with the debtor, which will allow for quick recovery of the debt.