Situation:
Our client, ABC Ltd., was facing issues with unpaid invoices from several of its customers. The total amount of outstanding receivables was approximately CZK 1,000,000. Despite repeated attempts to reach an out-of-court settlement, the debts remained unpaid, which had a negative impact on the company’s cash flow.
Client’s Request:
The client asked us to assist in recovering these outstanding debts in order to stabilize their cash flow and continue regular operations without further financial difficulties. The goal was to recover as much of the owed amount as possible in the shortest possible time.
Our Solution:
Debt Analysis: We conducted a thorough review of all unpaid invoices and contractual terms to assess the legal validity of each claim.
Pre-litigation Notices: We sent pre-litigation notices to the debtors, informing them of their obligations and requesting payment within a specified deadline.
Litigation: In cases where debtors failed to respond to the notices, we promptly initiated court proceedings. We prepared all necessary documentation and successfully represented the client before the court.
Enforcement: After obtaining final judgments, we initiated enforcement proceedings to recover the debts through a court-appointed bailiff.
Result:
Thanks to our systematic and efficient approach, we succeeded in recovering approximately 85% of the total outstanding amount. The client received CZK 850,000, which significantly improved their financial situation. In addition, we assisted the client in implementing more effective receivables management procedures to help minimize similar issues in the future.