debtor to cancel the debt – something that is more difficult when there is no good will on both sides. Are there any specific limitations or restrictions on debt collection practices that debt collectors should be aware of? An essential thing to know is that debts are not reclaimable for life. There is a time limit after which, if the proceedings have not been initiated, all right to do so is lost, and I think this is the greatest restriction faced by the collectors. In the case of personal contracts, such as a rental of real estate or a loan between two people, this term is five years. This has not always been the required term; this was established in 2015 via Law 49/9015, which modified the previous (much softer) term limit of 15 years. During those five years, the claim procedures must have been started. Once this happens, the term stops. In short, it is very difficult for that term to be met, and that debt is left unclaimed. Further, each type of contract may have a limit period that is determined and accepted by the parties. This is the case with mortgage loans, for example, which have a claim term of 20 years. What are the typical phases of debt collection, from initial contract with the debtor to resolution? When a person sets out to collect the amount owed to them, the first step is the recognition of the debt, they must prove that it exists. It is necessary to provide all the documentation you have, which gives veracity and solidity to your request. I am talking about contracts, emails, or messages by any other channel that show that the debt exists. At this point it is possible to make a claim amicably, in the act of conciliation, where both parties meet and try to reach an agreement. In the worst case, if the debtor refuses, despite having evidence against them, you should go to court. It is another thing if there is no evidence. Then it can get complicated. An out-ofcourt negotiation is required, where you must try to reach an agreement with the THOUGHT LEADER 65 In Spain, the collection of a debit is a right that any person has.
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