You delivered the goods, you provided the services, you issued the invoices, and you have not been paid. This is one of the most common and most frustrating situations faced by companies doing business in Romania. The good news is that Romanian law provides effective legal instruments for recovering commercial debts, if you know how and when to use them.
This guide explains your options step by step, from the first formal demand through to enforcement, with the advantages and limitations of each route.
What is a commercial claim and when is it legally recoverable
A commercial claim is a sum of money owed by a debtor under a commercial relationship, a sales contract, a service agreement, a works contract, or any other commercial arrangement.
To be legally recoverable, the claim must be:
Certain: its existence cannot be seriously disputed. A tacitly accepted invoice or a contract signed by both parties generally satisfies this condition.
Liquid: the amount is determined or determinable. An invoice with a fixed sum is liquid. A claim for unspecified damages is not.
Due: the payment deadline has passed. You cannot take legal action for an invoice whose payment term has not yet expired.
If your claim meets all three conditions, you have several recovery routes available.
Step 1 — Formal Demand Letter
Before any court procedure, the first step is sending a formal demand letter: a written notice informing the debtor of the outstanding debt and giving them a final deadline to pay.
A formal demand letter is recommended for several practical reasons. Some contracts expressly require it before legal proceedings can be initiated. It interrupts the limitation period: the time within which the claim can be legally recovered. It shows the court that you attempted to resolve the matter amicably before going to litigation. It can resolve the problem without further cost: some debtors pay upon receiving a formal legal notice.
How to send an effective demand letter: The demand letter must be sent by means that allow proof of receipt, registered mail with acknowledgement of receipt, bailiff service, or email with read receipt if the contract provides for electronic communication. A demand letter drafted by a lawyer, referencing the legal basis of the claim and explicitly stating that legal proceedings will follow without further notice, has a significantly greater impact than an informal email.
Give the debtor a reasonable but firm deadline: typically 5 to 15 days: and state clearly that proceedings will be initiated upon expiry without further warning.
Step 2 — Payment Order Procedure
If the demand letter produces no result, the first court procedure to consider for clear and undisputed commercial claims is the payment order procedure, governed by Articles 1014 to 1025 of the Romanian Civil Procedure Code.
What is the payment order procedure
The payment order is a simplified and fast procedure for recovering certain, liquid, and due claims arising from commercial contracts. It is the most efficient route when the debtor does not seriously dispute the existence of the debt.
Advantages of the payment order
The procedure is significantly faster than standard litigation: a straightforward case can be resolved in 2 to 4 months. Court costs are lower than in standard civil proceedings. The judgment is directly enforceable without a separate enforcement procedure. The procedure can often be completed without physical attendance at court.
When the payment order works
The payment order works best when the claim arises from a written contract signed by both parties, when the invoices have been tacitly accepted by the debtor without formal objection, when the debtor has no serious objections to the existence or amount of the debt, and when the debtor has assets or bank accounts that can be enforced against.
When it is not recommended
If the debtor disputes the existence or amount of the claim with serious arguments, if there is no written contract or clear evidence of the commercial relationship, or if the debtor is already in insolvency, the payment order procedure is not the right route.
Step 3 — Civil Court Proceedings
When the claim is disputed or when the payment order has been rejected or challenged by the debtor, the route is a standard civil action for payment: the standard judicial procedure for recovering commercial debts.
How long does a civil debt recovery case take
A straightforward debt recovery case at first instance can take between 6 and 18 months, depending on complexity, the court’s workload, and the debtor’s procedural behaviour. If the debtor exhausts all available appeals, the total procedure can take 3 to 5 years.
What evidence is needed
The commercial contract signed by both parties or any other document proving the legal relationship. The invoices issued and, if available, proof of their receipt by the debtor. Commercial correspondence: emails, messages, order confirmations: evidencing the commercial relationship and acknowledgement of the debt. Goods receipt notes or service delivery confirmations, where available. Any other evidence of your performance of your contractual obligations.
Court costs
A civil action for payment is subject to a court stamp duty calculated as a percentage of the claimed amount. Upon winning the case, court costs: including the lawyer’s fee: can be ordered against the debtor.
Step 4 — Precautionary Measures
One of the most effective instruments available to you during proceedings is the application for precautionary measures: asset seizure or bank account freezing, which blocks the debtor’s assets or bank accounts before judgment is delivered.
Precautionary measures are essential when there is a risk that the debtor will hide or transfer assets during the proceedings. A debtor whose bank accounts have been frozen has a strong incentive to reach a quick settlement.
An application for precautionary measures is filed separately, usually at the same time as or after filing the main action. The court may grant the application without hearing the debtor in urgent cases.
Step 5 — Enforcement
Obtaining a favourable court judgment is the first step: not the last. If the debtor does not pay voluntarily within the deadline set by the judgment, enforcement proceedings follow.
How enforcement works
Enforcement is carried out through a bailiff, at the creditor’s request. The bailiff has several instruments available for recovering the amount owed.
Bank account garnishment: the fastest and most effective instrument. The bailiff requests the debtor’s banks to freeze and transfer available funds up to the amount of the claim.
Income garnishment: if the debtor is an individual or has patrimonial rights such as dividends, the bailiff can garnish those income streams.
Asset seizure and sale: the bailiff can seize and sell the debtor’s movable and immovable assets to satisfy the claim.
When enforcement does not work
Enforcement is ineffective when the debtor has no assets or available bank balances, when assets have been transferred to third parties in advance, or when the debtor is already in insolvency. In these cases, the route to follow is insolvency proceedings or actions to annul fraudulent transfers.
Limitation periods — deadlines you cannot afford to miss
The right to recover a commercial claim prescribes after 3 years from the date the claim became due: that is, from the invoice due date or the payment date specified in the contract.
The limitation period is interrupted by a formal demand letter, by the debtor’s acknowledgement of the debt, or by filing the court claim.
If the limitation period has expired, your claim can no longer be recovered through the courts: the debtor can raise prescription as a defence and your claim will be dismissed. Act before the deadline expires.
Recovering debts when the debtor is in insolvency
If the debtor has entered insolvency proceedings, debt recovery follows special rules under Law 85/2014. You must file a proof of claim in the insolvency file within the deadline set by the insolvency judge: typically 30 to 60 days from the opening of proceedings.
Failure to file within the deadline results in forfeiture of the right to participate in distributions: you lose the right to recover any amount from the insolvency proceedings, regardless of the value of your claim.
How much does debt recovery cost
The total cost of recovering a debt depends on the route chosen and the complexity of the case.
A demand letter drafted by a lawyer typically costs between €50 and €150. A payment order, lawyer’s fee between €150 and €500, plus court stamp duty. A civil action, lawyer’s fee varying with the value of the claim and complexity, plus stamp duty calculated as a percentage of the claim. Enforcement, the bailiff’s fee is regulated by law and calculated as a percentage of the amount recovered.
Upon winning the case, the court can order the debtor to bear your legal costs, including the lawyer’s fee, within reasonable and evidenced limits.
Practical tips to maximise your recovery
Act quickly. The longer you wait after the invoice due date, the lower the recovery rate. Debtors who do not pay on time rarely become more solvent over time.
Keep all documentation. The contract, invoices, correspondence, delivery evidence, every document can be decisive in court.
Do not accept repeated verbal promises. If the debtor has promised to pay more than twice without doing so, it is time to take legal action.
Check the debtor’s financial position. Before investing in legal proceedings, verify that the debtor has real assets that can be enforced against, at the Trade Register and through publicly available information.
Apply for precautionary measures early. If there are signs that the debtor intends to transfer assets, apply for seizure or account freezing at the same time as filing the main action.
Frequently Asked Questions
Can I recover a debt without a written contract?
Yes, but it is more difficult. You can prove the commercial relationship through other means, electronic correspondence, tacitly accepted invoices, witnesses, written orders. The stronger the evidence, the better the chances of success. The absence of a written contract does not mean you have no right to recover, it means you will need to prove the agreement through other means.
What happens if the debtor disputes the invoice?
The payment order procedure is no longer available and you must follow the standard civil action route. The court will analyse all evidence and decide whether the claim is well-founded. The debtor disputing the invoice does not automatically mean they are right, it means the case will be more complex and will take longer.
Can I claim interest for late payment?
Yes. Law 72/2013 on combating late payment in commercial transactions provides for penalising statutory interest on commercial debts unpaid at maturity. The penalising statutory interest rate is published periodically by the National Bank of Romania. If the contract contains a penalty clause, it applies instead of or in addition to statutory interest, depending on the contractual provisions.
Is it worth litigating for a small amount?
It depends on the amount and the debtor’s financial position. For small, undisputed claims, the payment order procedure is fast and relatively inexpensive. For very small amounts, below RON 1,000,the cost of proceedings may exceed the amount recovered. We give you an honest assessment at the first consultation.
The debtor has no money now but promises to pay. What should I do?
Request a written acknowledgement of the debt, this interrupts prescription and can be used in court. Negotiate a payment plan formalised in an addendum to the contract or a separate agreement, with clear penalties for non-compliance. Do not rely on repeated verbal promises.
Can I recover my legal costs from the debtor?
Yes, if you win. The court can order the debtor to bear your legal costs, court stamp duty, lawyer’s fee within reasonable and evidenced limits, and bailiff’s fee. The award of legal costs is not automatic, it must be expressly requested in the statement of claim.
Do you have an outstanding receivable and want to know the fastest and most effective recovery route in your specific situation?
Request a Legal Assessment , we respond within 24 hours on business days.
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Continuăm cu articolul 2 —Cum ceri deschiderea insolvenței unui debitor?
