7. EXTRAJUDICIAL DEBT COLLECTION 

7.1 In theory we often continue with the extrajudicial step of the debt collection cycle. We're trying to avoid the need to go to Court during this process, as this can be costly. We'll call your debtor in Italy to seek payment.  

7.2 We do have the following options at this stage:

• Written letters of demand and phone calls: We send a written letter of complaint to the debtor and contact them by telephone, demanding that they settle the fee within a few days, together with interest and costs;
• Create a payment arrangement: It is often best to agree to a payment arrangement. Once a settlement contract has been signed by the client they have already accepted the debt. At a later stage, that can be helpful. Nevertheless, it is important to employ the services of an Italian lawyer who speaks fluent Italian and is familiar with the Italian negotiating tactics before entering into a payment arrangement;
• Announcing legal proceedings: Announcing legal proceedings will often convince the Italian customer to pay when no payment takes place. They do not wish to run the risk of starting a legal proceeding against them.

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8. JUDICIAL DEBT SETTLEMENT 

8.1 If your debtor refuses to pay during the extrajudicial process we can go to the Court after mediation with you. 

8.2 We will always provide you with information about the possible costs in advance and we will only continue with your permission. There are a number of legal cases in Italy which you could start collecting your claim. The most important protocols are laid out below:

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• Reimbursement order ("Ingiunzione del pagamento"): The Italian order for reimbursement process takes place between the claimant and the Tribunal, without the participation of the debtor. Such procedures require you, the claimant, to order that a provisionally enforceable judgement be issued by the Tribunal. The debtor has only 40 days in which to fulfil the summons. If the debtor opts to lodge a claim, otherwise ordinary civil proceedings are launched automatically;
• Ordinary civil litigation ("Processo ordinario di cognizione"): has your debtor lodged a complaint against the payment warrant, or is your claim contested? Usual civil proceedings can then be launched. The argument must be supported and substantiated for this to happen. Many proceedings will proceed, as the Court has stipulated. To substantiate your claim, it is likely that witnesses need to be given. Sometimes those trials can take longer than a year.

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EUROPEAN ORDER FOR PAYMENT PROCEEDINGS

In the case of an uncontested dispute between two parties located in EU Member States (except Denmark)

European order for payment proceedings may be initiated.

In your situation, the prosecutor who manages the case will decide whether this kind of action is acceptable.

The claimant typically filled out a standard form for EU Order for Payment procedures and submits this to the Tribunal.

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Instead, the Court issues a Local Transaction Notice. The debtor then has 30 days to decide whether they object to the charge. 

If no notice is obtained within the 30-day span, you can require the Court to finalize the payment order (called a "declaration of enforceability"). This decision is true and enforceable and is recognized in any Member State (except Denmark). 

The EU Payment Order is never appropriate for contested issues (so not in situations where there is a disagreement over the invoice).

The benefit of this process is flexibility and low cost (some Member States don't even impose a court fee), but the drawback is that if it gets challenged, the case stops, and if the claimant wants to continue, a regular civil action will have to be launched.