Introduction

Recovering a debt can be a serious problem for almost every business owner regardless of the industry or the profession. Collecting a debt can be an arduous process anywhere, but coupled with the anxiety associated with the Romanian justice system and a general lack of understanding as to the protections afforded to creditors by Romanian law, doing business and lending in Romania is often too daunting for most lending institutions – particularly in troubled times. Fortunately, the Romanian legal system does provide an expedited framework for creditors to collect debts, and this article describes the legal tools available to them in Romania that allow for the recovery of their debts.

Different procedures for debt recovery

Under Romanian law, if a debtor has not paid the amount due by the due date, a creditor may initiate a court proceeding against the debtor for the recovery of the debt within the three-year statute of limitations. Additionally, of course, creditors may use the insolvency procedures set forth in Law 85/2006 (the “Insolvency Law”) where applicable.

Since October 2007, when the Government Emergency Ordinance no. 119/2007 (“GEO 119”) came into effect, as part of Romania’s responsibilities in its accession to the European Union, two expedited procedures for debt recovery have co-existed -- the summons procedure, created by Government Ordinance no. 5/2001, and the payment ordinance procedure, established by GEO 119. Where applicable, creditors may opt between either of these two expedited recovery procedures, or they may continue to resort to the procedure provided by the general provisions of the Civil Procedural Code, but which takes longer to fully implement.

Summons and payment ordinance procedures

If the creditor has enough information regarding the solvency of its debtor, and if the claim be