COLLECTION MANAGEMENT AND DEBT COLLECTION IN COSTA RICA
Collection management is the way a creditor may improve his collection on pending loans or collection of judgments through a legal procedure. This procedure takes place when a debtor or guarantor does not honor the terms of a debt or does not fulfill a judgment and all the other administrative procedures has been exhausted, such as commitments, refinancing terms, etc. so that the matter has to be taken to the court of justice or by hqaving been to court now need to be enforced.
Via to the ample experience obtained through more than 25 years as a collection lawyer for several financial institutions and other companies, we offer a complete technological platform and a team specialized in collectionmanagement, so that the foreclosure or chattle mortgages, mortgages, hypothecs and trusts do comply with the local uses and legislation.
Our service are based on a formal structured procedure backed by a infrastructure that works full time on the collection of debts, exhausting all the possible routes regarding the collection of debts.
What happens when a judicial collection procedure takes place?
The amount of the debt is increased due to the administrative expenses, charging interests, default interests and lawyer’s fees.
All the assets of the debtor are seized; and the salary and bank accounts frozen, until the trial starts.
All seized assets are frozen, which means they cannot be sold or transferred to another person, without first liberating the asset from the obligation, which as a consequence means the payment of the debt to the creditor.
As part of the seizure, a part of the salary of the debtor will be reduced, month after month, until he pays the debt. This process can last many years, depending on the salary and the amount of the debt.
For all those reasons, you should never take a legal collection procedure lightly. It is important to know that a proper and timely legal advice can bring viable solutions to this kind of situations, as much to the creditor as to the debtor.