If you are a business owner, and you have collection problems with credits granted to other companies or debtors in credits received and due to the pandemic, the cash flow is affected by the lack of liquidity, it is time for you to seek suitable advice. You should know the new Civil Procedure Code, in force since 2018, a regulatory body that regulates everything related to the judicial collection in Costa Rica.

Therefore, if the person who runs the company or his Legal representative, is summoned by the borrowing entity, for the cancellation of his obligations, he must appear, we must not forget, that the Civil Procedural Code, provides that the Debtors must cancel their obligations, regardless of the amount owed and that the times, for the execution of the judicial embargoes, have been shortened and in a few months they can be settled, this must be known by the debtor, that is, the judicial collection in Costa Rica, it is relatively fast.

Likewise, when an owner or legal representative of a company is involved in a judicial collection and does not pay attention, does not defend himself, does not attend the appointments and calls made by specialized courts in the matter, his credit history may be stained for several years.

Importance of Judicial Collection

For this reason, it is very important to know the details of judicial collection in Costa Rica, financial institutions, private companies, long ago granted grace periods, regarding the payment of credits, those times have already expired, everything has resulted in a large number of lawsuits for judicial collection, fast loans with credit cards, are the most emblematic, therefore you should seek good advice if you are involved in these legal problems.

Do not forget that there is legality that cannot be neglected, non-compliance and ignorance of it does not exempt you from your obligations, because once the judicial collection process has begun, the debtor can be seized the bank accounts of the company, further aggravating cash flow, hit by the pandemic that plagues humanity.
Likewise, if by any chance, you as a businessman are a guarantor of debt of another company, you are not exempt from responsibility, that is, you are jointly and severally in debt and must cancel it if the person who received the loan does not cancel it. In the judicial collection process, once started, they can seize even your house, bank accounts, and other registrable assets, for a debt that you did not contract but is a joint guarantor in everything.

Debt Transfer

It may be the case that if you owe a company, it can assign the right to collection to another company specialized in judicial collections, the collection notifications will come to you by another means and you will have the same legal problems, likewise, you must advise not to be a victim of abuse due to improper charges, why there is another company other than the one that granted you the loan.

In this sense, if you are a debtor or guarantor of a loan and there have been defaults in the payment of this debt, you may be about to have legal problems, do not forget that there are professionals prepared and willing to help you do not hesitate to consult and therefore allow oneself to be helped until tranquility can be reestablished in the company. At ERP Lawyers & Associates we have a team specialized in the judicial collection, do not hesitate to contact us.