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What is the process of hard debt collection?

Since lengths of court proceedings are rather long, LANDE is actively searching for refinancing options for our borrowers. Court proceedings are considered the last step after all other options have been evaluated and are no longer applicable to the case.

Below is a high level hard collection framework to visually showcase the process.


When a decision is made to initiate court proceedings, before that, according to law, the creditor (LANDE) must send a Warning notice of the debt and withdrawal from the agreement. Step by step process for legal cases, according to law, is as follows:

Step 1: Warning / Notice is sent as registered letter via post, in case a debtor does not collect the post letter within 30 days, LANDE proceeds to send a notary warning which is then submitted by a notary.

Step 2: Withdrawal from the agreement if there is no response to the warning and LANDE has performed all other debt collection actions but they have not been successful.

Step 3: Court proceedings initiate by preparing the claim document which can take up to one week. After that, the claim is submitted to the court. According to law, if the court does not require additional supporting documents, the case is initiated and a defendant has 30 days to provide their arguments. The court can set either written or oral court hearings, which can take anywhere from 3-9 months ahead of the case submission date. When submitting a claim in court, LANDE asks to repay the outstanding amount (principal + interest + penalties), therefore, when a claim is satisfied in full, as a result, all amount due is recovered from the debtor.