The economic crisis is increasing defaults of companies which is vital for the implementation of a methodology for recovery efforts.

The defaults are the order of the day largely due to the sharp economic downturn and financial is hitting Spain and other European Union countries.

Notice to debtor

To avoid unaffordable increase of defaults should immediately implement a protocol standard and uniform, taking into account the terms and the different means of communication with the debtor. Thus, if the defaults are always handled the same way is more likely to be strong in management, while avoiding being a scapegoat of the debtors.

Steps to manage a default

It is imperative to know just a default, begin to act immediately with a subtle and friendly claim to the debtor by a written communication, or by telephone, if we find out what was the reason of default.Also be documented immediately and show the delinquent debt the existence of debit to claim later. This point is very important because sometimes we want to claim there are unpaid but are wholly or partly illegal, leaving us in a situation of extreme helplessness in case the debtor denies the existence of the debt and its Accordingly bill.

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Document the trade and debt claims

For this reason, it never hurts to document the claims through means such as email certificates (comfortable, easy and very cheap), thus demonstrating our claims and the debtor showing the strongest response to default on our part. It is also important to document the business with agreements accepted by both sides, never unilateral and of course to acknowledge the existence of the bill, communicating days before the debtor, if possible, the end of it.

Economic and financial situation of the debtor. Business reports

Ways of acting against a default based on the knowledge of the financial situation of the debtor in order to assess what action to take. Thus, a total legal knowledge, business, commercial, economic and financial debtor provides greater efficiency when a default claim.

Unity is strength: the professional delinquent

Several classes of debtors: the debtor timely, the defaulter is forced by his economic and financial situation, the debtor “clueless”, etc. However, the most dangerous of all is the professional delinquent. A “species” that increases in times of crisis and deep knowledge of all legal arguments to avoid any responsibility and leave indenme in most cases. To combat this type of borrower is essential partner, look for other creditors to exchange any information about the debtor and the appropriate measures to make it even could be judicial.

Settlement

It is true that the professional delinquent most times we are forced to resort to the civil courts to collect the outstanding debt. However, it is an exception, since a good recovery manager should try to avoid this solution and try to reach a settlement. You should always strive for consensus with the debtor, and get an IOU signed by it with all possible guarantees, in order to get well, a document exchange for payment of debt.

Recovery of VAT

Finally, those wholly or partially uncollectible credits must try to recover VAT on schedule by the VAT Law (Articles 80.3 and 80.4 LIVA), this being a power that gives us a law that significantly reduces the impact financial default in our company . Sometimes, although the methodology in the management of optimal recovery, in a situation where there is a high percentage of late payments, it is hard to assume individually all payments in an efficient and appropriate. Therefore, it is sometimes advisable to seek professional care as soon as possible for proper management of non-payment and to claim interest and costs provided for in Law 15/2010 on measures to combat late payment in commercial transactions.