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Debt Collection in Andorra

Debt Collection in Andorra

Updated on Thursday 14th May 2015

The debt collection procedure in Andorra can be started when a debtor becomes incapable to pay debts to a creditor after the debts came to maturity.
In this case, the first recommended step consists in sending the debtor several demand letters or to contact him by other means in order to inform him about the debt. The debtor must be informed about the amount due and about the further measures that can be taken against him when he does not fulfill the claim.

When the debtor proofs that his financial situation does not permit to pay the entire debt at once, both parties may agree on installment payments, the amount of each installment and the periodicity being agreed by both parties.

When the creditor does not receive any answer from the debtor, he is entitled to bring the case before the competent authority. At this point the competent authority will provide a Payment Order. This document is enforceable and it stands as a decision issued by the Court. In order to obtain a Payment Order the creditor must present the complete documentation that confirms the debt and the amount must not exceed a certain sum provided by the law.

The debtor will receive the Payment Order and must pay the debt in a certain period. He also has the right to appeal against this document. In this case the case will be judged before the competent Court. This also happens when the debtor fails to pay the debt in the period provided by the Payment Order.

When the case is forwarded to the competent Court, this authority will require from both parties proofs to sustain the claim and the parties will be summoned to a court hearing when the judge considers to have enough evidence to examine the case.

In the court hearing both creditor and debtor will bring evidence, including bills, invoice overdue and they will sustain the case by oral statements. Both parties have the right to bring witnesses before the court. The judge will analyze the documents and the parties’ statements and will issue a decision on the basis of law’s provisions. The Court will schedule a date to make public the decision and both parties will be informed about the Court’s decision.

After the issuance of this document the creditor is entitled to take further actions when the decision is taken in his favor.

The decision issued by the Court is enforceable and a bailiff will take care of further procedures. The bailiff will draw up a list with the debtor’s assets and when this party still doesn’t fulfill the claim, the bailiff is entitled to attach his assets and seizure them. The final step consists in selling the debtor’s assets in order to pay the debt and other costs derived from the entire procedure.