English
The consequences can be different because the debtors may be different, however here are the most significant:
• Los of reputation of the debtor and to his family - in case of an individual person.
Non-compliance to a contract obligations, poor payment discipline and overall negligence to other people's money does not bring satisfactions to anyone and this may not remain a secret. INCASO opens to the public the debtors list and informs other creditors on the existence of these debts. In this case the debtors may have difficulties dealing with their business partners, crediting institutions, at their workplace, in the family and circle of friends.
• Performance of the obligations from the debtor's property or its representative / liable person (guarantor, heir, etc.)
The debt can be covered from the sum obtained from the sale of the apartment, house, car, land, household appliances or other properties of the debtor and the eventual remaining amount is returned to the debtor. And believe us that nobody will be interested in asking how valuable or necessary were these goods for the debtor / guarantor and how this situation was created. Thus the debtor can only blame himself.
• The substantial debt value increase due to the late payment. The sanctions are increasing, the debt collection costs, court expenses and executor costs are added, etc.
At the pre-trial stage the debtor bears additional costs for the mandate / collection - because his actions or inactions caused additional costs related to debt collection / recovery by representing the interests of the creditor. These costs include the debt processing and analysis, debtor search, information check other databases, dispatch notifications, telephone calls to debtors, search in person of the debtor, meetings with debtor, debtor assistance in finding solutions to debt repayment and so on. Costs are determined by the length of pre-trial proceedings, the amount of debt and debtor behavior. In any case the expenses for one debt are not less than 100 lei and 5-7% for debts with high sums.
If the debtor does not cooperate, at the judicial phase, he will support additionally to the debt,:
- State Fee paid by INCASO or Client (Creditor) for initiation of proceedings. The State fee under the law is 1.5-3% of the amount of the debt but not less than 135 or 270 lei.
- Lawyer costs in court. As recommended by the Lawyer Bar Association the service costs are about 10% of the amount of the debt but not less than 2,500 lei (regardless the debt type or form);
The execution phase:
Costs will rise because the law provides that the debtor will bear the execution fees starting from 800-1000 lei, plus 300 lei for each field visit of the executor related to the debt. Additionally, the debtor will bear the executors fees of about 10% of the value of the debt but not less than 500 lei.
Moreover, whether or not a contract has been signed or some certain interests or penalties have of not been stipulated, INCASO under legal provisions will calculate and the executor will receive an interest in the amount of 16% of the value of the debt, beside the main debt.
For Example: If you have a debt of 1000 lei and you refuse to pay then the extra costs will be as follows: 1000 lei (debt) + 135 (fees) + 2,500 lei (lawyer) + 1,000 lei (performance fees) + (500 lei - the executor fee) + 14% the annual interest + other costs = 5000 lei. So, the debt grows 5 times!
• In addition to the costs, the late payment is also a psychological burden for the debtor. I is always wise to find a quick solution with INCASO because it is way cheaper and less painful. If you cannot pay the whole debt, it is reasonable to conclude an payment agreement with INCASO on a long term performance. This will cost you more than immediate payment, but it will not bring the abovementioned effects and the debtor may feel more relaxed in society.