The primary object is to achieve the greatest possible payment. However, often the optimum handling of a claim depends on several circumstances, which it pays off to investigate.
One important aspect is the identity of the debtor. If the debtor is a physical person, we have access to public registers of debtors, just like we have access to information on the debtor’s interest in and ownership of any larger assets, such as real property, vehicles, small enterprises, etc. If the debtor is a company, its annual reports will be publicly available.
Another important aspect is the type of claim. It has a bearing on the handling of the claim whether the claim is based on an invoice, a contract or whether it is a claim for damages, e.g. on breach of an agreement.
We compare the information available from the outset of the matter to the outcome one would usually expect in the Danish legal system and, on this basis, we are able to estimate whether the documentation available is sufficient and what further evidence would be helpful.
We are often able to offer you a firm price, or at the very least provide you with an estimate when we receive the documentation for the claim.
Any defended claims are brought before the Danish courts and a defence means the commencement of litigation. We cannot provide you with an estimate of costs of a litigated claim as it will very much depend on the proceedings and the evidence to be presented.
The progress of a debt collection matter
The progress of a debt collection matter according to Danish law can usually be divided into two phases:
In the initial phase, the creditor (who is owed money) acquires documentation that the claim exists. This means that a defence is precluded and that the value of the claim is determined. This also means that the general period of limitation, which is three years, is interrupted and replaced by a 10-year limitation period.
In the second phase, the claim is collected through the execution court. The collection may include the court making a judgment lien and e.g. making an order for an instalment plan.
ADVODAN will handle the entire process. We will report to you on an ongoing basis and will settle any sums as they are collected, or in one final payment, whichever is agreed with you.
Due care and diligence
We will ensure that your claim does not become time-barred and that time limits are kept. We will ensure that your claim is handled in the best possible manner. This may include the option of petitioning for bankruptcy. It may also follow that we advise against court proceedings because the probability of success does not warrant this.
Internationally, the Danish legal system is deemed to be quite efficient. All Danish physical persons as well as companies are registered in public registers and have official addresses, which means that they are traceable. The system is also relatively cheap.
On the other hand, the legal systems of other countries, with which we are often compared, have better options of collecting debt from other sources that those available in the Danish system. In accordance with Danish law, for example, we are unable to deduct payment from income, which is an otherwise very effective debt collection method when the debtor is a physical person.
The usual timeframe for completing a debt collection case in Denmark is 10 to 12 months. This does not include cases which are settled by instalment agreements.