Debt Collection And Credit Management

It is well-known that an effective and aggressive management of debts plays an important role in order to limit the damage caused by debtors defaulting on payment, damage now increased in our country by the recent reduction of legal interest rate, not to mention the chronic crisis of the enforcement of civil judgements by ordinary proceedings.

Now, as already discussed in the Newletter no. 22, the advantage of an early commenced debt collection is not only that of maximising the chances of actual recovery and size of the net amount recovered (that is, less legal costs and damages suffered for delay), but also that of allowing, in the worst case, an early write-off of the debt for fiscal purposes, following a declaration of insolvency of the debtor.