Damon Mcknight
If you're looking to learn about bill collections in Austria, you've come to the right place. In this article, we'll be exploring the various methods and procedures involved in debt collection in Austria, including the role of debt collection agencies and attorneys. We'll also be discussing the legal framework that governs debt collection in the country, including the Austrian Lawyers' Code of Practice (RAO) and the Code of Conduct for European Lawyers. Additionally, we'll take a look at how single-use container returns and recycling targets fit into the broader topic of bill collections in Austria. So, whether you're a business owner or an individual seeking to understand your rights and responsibilities when it comes to debt collection in Austria, read on to learn more about this important topic.
| Characteristics | Values |
|---|---|
| Debt collection agencies | Usually paid with a percentage of the amount recovered |
| Debt collection agencies | Not paid if the claimant does not recover the amount |
| Debt collection agencies | Usually have the responsibility of gathering basic data on the debtor |
| Debt collection agencies | Usually have the responsibility of inspecting the insolvency file and different registers |
| Debt collection agencies | Usually have the responsibility of proposing the best approach for the claimant's case |
| Debt collection agencies | Usually have the responsibility of agreeing with the debtor to pay their debts in instalments or in full |
| Debt collection agencies | Usually have the responsibility of raising a judicial procedure against the debtor if they do not pay |
| Debt collection attorneys | Able to activate court proceedings immediately |
| Debt collection attorneys | Able to start enforcement proceedings based on the judgement |
| Debt collection attorneys | Able to send a formal reminder to the debtor |
| Retailers | May only accept through manual collection the type of containers they sell |
What You'll Learn
Debt collection agencies
If the methods used by debt collection agencies are not working, claimants are advised to start court proceedings by empowering the debt collection agency to pursue or initialise actions at the Commercial Court.
As an alternative to hiring a debt collection agency, claimants can instruct an attorney-at-law to activate court proceedings immediately and start enforcement proceedings based on the judgement. Instructing an attorney-at-law is often considerably more effective than first commissioning a debt collection agency, as upon a formal reminder being sent by the attorney-at-law, an action is directly pending.
Debt collection attorneys in Austria have a very high duty of care, and by receiving a demand letter from a law firm, debtors will know that the claim is based on a profound legal basis. Attorneys are obliged to be biased under Austrian law, so they will always check the claimant's legal position first and propose the best approach in their case. They are able to gather all basic data on the debtor and make an inspection of the insolvency file and different registers.
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Court proceedings
Debt collection agencies are usually hired to pursue or initialise actions at the Commercial Court. They are usually paid with a percentage of the amount recovered from the debtor. Many debtors pay their debts once the situation becomes official. Debt collection agencies will usually agree with the debtor to pay their debts in instalments or in full after a period of time before a judicial procedure is raised against them.
If you are a business, you may want to avoid alienating your clients by hiring a debt collection attorney. Instead, you can instruct an attorney-at-law to send a formal reminder, which is often more effective than first commissioning a debt collection agency.
It is important to note that Austrian law and legal proceedings may be complex, and it is always recommended to seek professional legal advice for specific situations.
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Attorney-at-law
In Austria, hiring a debt collection agency is usually advantageous because they are not paid unless the claimant recovers the pending amount of cash from the debtor. Debt collection agencies are usually paid with a percentage of the amount recovered. Many debtors pay their debts once the situation becomes official.
However, instructing an attorney-at-law immediately is, in most cases, considerably more effective than first commissioning a debt collection agency. Attorneys-at-law have a very high duty of care and can show debtors that the claim is based on a profound legal basis. They can also activate court proceedings immediately and start enforcement proceedings based on the judgement.
Attorneys-at-law are obliged to be biased under Austrian law. They will always check your legal position first and know your legal position instinctively. They can propose the best approach in your case, gather all basic data on your debtor, and make an inspection of the insolvency file and different registers. They will always see the bigger picture of your claim and the whole case.
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Insolvency files
In Austria, the legal representatives of the debtor must file for insolvency if the debtor is materially insolvent within the meaning of the Austrian Insolvency Act. This criterion is met if the debtor is illiquid (cash flow insolvency or zahlungsunfähig) or over-indebted (balance sheet insolvency or überschuldet). In the event that the requirements of either a cash flow insolvency (Zahlungsunfähigkeit) or balance sheet insolvency (Überschuldung) are fulfilled, the legal representative (s) of a company or partnership have to file for insolvency without undue delay, but in any case, within 60 days upon knowledge of the material insolvency.
If a company is in crisis, the Austrian Reorganisation Act places a "de-facto duty" on managing directors to file for reorganisation proceedings. Managing directors are liable for company liabilities not covered by the eventual insolvency estate if, within the last two years before the insolvency filing, they have received a report from the company's auditor stating that the equity ratio is less than 8% and the notional debt repayment period exceeds 15 years, and have not immediately filed for reorganisation proceedings or have not properly pursued such a proceeding.
Additionally, shareholders may become liable in connection with a failure of the legal representatives to file for insolvency, if they act as shadow managers and hinder the legal representatives from filing. If a company does not have a legal representative, the obligation to file for insolvency lies with the shareholder who holds more than half of the share capital of the company.
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Claimants and debtors
Debt collection attorneys in Austria have a duty of care to both the claimant and the debtor, and they work based on the Code of Conduct for European Lawyers and Austrian Lawyers' Code of Practice (RAO). Attorneys can activate court proceedings immediately and start enforcement proceedings based on the judgement. They can also gather basic data on the debtor and make an inspection of the insolvency file and different registers.
If the claimant's previous methods are not working, they can start court proceedings by empowering the debt collection agency to pursue or initialize actions at the Commercial Court.
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Frequently asked questions
You can either hire a debt collection agency or instruct an attorney-at-law. Debt collection agencies are usually paid a percentage of the amount recovered, and many debtors pay up once the situation becomes official. Attorneys-at-law can activate court proceedings immediately and start enforcement proceedings based on the judgement.
Debt collection agencies are usually paid a percentage of the amount recovered, and many debtors pay up once the situation becomes official. The agency will usually agree with the debtor to pay their debts in instalments or in full after a period of time before a judicial procedure is raised against them.
Debt collection agencies are not paid if the claimant does not recover the pending amount of cash from the debtor. The methods used by the agency are usually not different from those used by the claimant, but many debtors pay their debts once the situation becomes official.
Attorneys-at-law can activate court proceedings immediately and start enforcement proceedings based on the judgement. They will also always check your legal position first and know your legal position instinctively, so they can avoid mistakes right from the start and propose the best approach in your case.
If the previous methods are not working, the claimants are advised to start court proceedings by empowering the debt collection agency to pursue or initialize the actions at the Commercial Court.
