Friday, 11 December, 2020

Debt collection: how it works and when it is better to act

The term debt recovery indicates the set of activities that allows a creditor to recover an outstanding debt.

The credit recovery activity constitutes a phase of “credit management”, ie the management, administration, and control of a credit service; the main purpose of the recovery activity is to revitalize an unpaid credit and, thanks to the tools provided by law, transform it into a future collection.



The problem of unpaid credits represents one of the main reasons for the crisis involving professionals and businesses. The lack of liquidity and overdue payments are the main causes of the recession in the Italian economy.

This is why debt collection is the best tool to combat the economic crisis and make the production system more efficient.

To achieve this goal, many companies and debt collection agencies were born in Italy, offering protection and assistance in favor of unsatisfied creditors.

The great competition in the recovery sector requires a new systematic approach for professionals: the tradition of the past is not enough to manage the new credit protection processes. New technological tools and new financial platforms require different attention and analysis.

Legal Recovery was created with the aim of offering a new solution for the debt collection market; innovation and technology are our main tools and allow us to offer support to creditors in a complete and unique way.

How is a credit born?


The credit right arises from an obligation, or from a legal relationship that is established between two subjects. This relationship may derive from a contract concluded by consensus between the parties or from a non-contractual liability.

After the conclusion of the contract, one of the contractors (the debtor) will be obliged to provide an economic service in favor of the other contractor (the creditor). The credit, therefore, constitutes the contractor’s right to receive the sum of money from the debtor.

The credits deriving from the contract are distinguished according to the type of creditor and debtor involved in the transaction.

In particular, we can distinguish credits in the following sectors: BANKING, COMPANY, PROFESSIONAL, UTILITIES, TELCO.


Technological evolution and new digital platforms have created new types of credits in the following sectors

In the recovery activity, it is essential to know the main sectors in which the transactions take place; Thorough examination of the contractual relationship from which the obligation arises is the best tool for correctly assessing a credit.

Legal Recovery constantly analyzes the differences between the various credit sectors and dedicates a lot of time to the study of the most suitable legal instruments to protect each type of credit.

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