Debt collection also called as claim management means the management, resolution and, where necessary, the colletion of outstanding claims, unpaid debts, etc. One of the most common cases is non-payment for work that has been properly performed according to the concluded contract.

Effective claim management requires a comprehensive approach and attitude. It is necessary to establish the facts, the evidence must be taken into account and it is needed to analyse the possible scenarios. Afterwards it is worth trying to reach an agreement acceptable to all parties. In most cases, everyone will be much better off if the dispute ends in an agreement. A letter from a lawyer or a payment request is often sufficient to increase willingness to pay and to reach an agreement.

If no agreement is reached, the claim is recovered through legal action by initiating and pursuing the appropriate legal proceedings. In order to recover the claim, an order for payment, a legal proceeding before court or a liquidation procedure may be initiated. These procedures may be effective or ineffective, depending on the claim, and may involve different time and cost implications, so it depends on the specific case to decide which procedure is the most appropriate. Unfortunately, it may also be the case that no action is worth taking because of the low probability of recovery or because of the high costs.

Due to the complexity of debt recovery, it can be a time-consuming and costly process, so it is advisable to seek the assistance of a competent lawyer to avoid further unnecessary losses and to ensure the effectiveness of the debt recovery process.