Common Q&A

Common Q&A for costumers

1. What do I/we have to do to start working with you and how much does it cost?
2. What about the payment of attorney fees and other costs in the process of pre-legal and legal debt collection?
3. How can we follow the developments in with our cases?
4. In what format do you need us to provide our databases?
5. When is the best time to initiate the collection procedure?
6. Can professional education be arranged to train our employees in phone collection or enforcement and other procedures?
1. What do I/we have to do to start working with you and how much does it cost?

To be able to start collaborating with you, we will need a list of your debtors in tabular form, with a specific data structure as determined by our prior agreement.

There are no initial fixed costs based on our cooperation. The compensation for our services will depend exclusively on the realization of payments, with a few exceptions where the matter is already being addressed by an ongoing legal procedure, thus requiring services of handover and review of existing files, notifying and monitoring of insolvency proceedings etc., for which fixed fees are charged on a case by case basis.

2. What about the payment of attorney fees and other costs in the process of pre-legal and legal debt collection?

During pre-legal and legal debt collection, PROHIT collaborates with in-house attorneys, who have the option of charging respective attorney fees and material costs as per applicable attorney tariffs, but this will lower the relative fees based on paid realization.

In the procedure of legal collection, you as the creditor will pay a deposit for court fees when filing an enforcement application, but in the case of payment you will be reimbursed for these fees. If a civil procedure is initiated based on our mutual agreement, you as the creditor will cover the costs of the civil procedure as per applicable attorney tariffs.

3. How can we follow the developments in with our cases?

Cooperation with us is very consistent and you will be able to access the software application 24 hours a day, 7 days a week. This will enable you to follow the chronology of the entire claim collection process and to be actively involved in it. At any moment, you will be able to access the entire documentation being created during the course of the collection procedure, for each individual case. As part of our IT support, electronic files are created, which at your request can also be exported upon the conclusion of the collection procedure and sent to you by e-mail.

4. In what format do you need us to provide our databases?

Data on debtors may be provided in any format (excel, xml, text etc.). As a rule, our clients are given a sample file having the data structure necessary for us to start active claim collection (data on the debtor: name and surname or company name, address, phone number, e-mail address; data on the existence of debt: basis, due date, amount of the principal).

5. When is the best time to initiate the collection procedure?

It is best to initiate the collection process right after the due date i.e. when internal reminders have been completed (30-120 days after the due date of the invoice). Early phone collection is also recommended; it can be done by us right after the due date or even between your internal reminders. This involves very early contact with the debtor, whereby a soft approach is used and the debtor is encouraged to pay as soon as possible. At the same time, in this phase any formal reasons for non-payment are also established. Furthermore, it is important for internal and external reminders to be sent at regular time intervals without any prolonged gaps in between.

6. Can professional education be arranged to train our employees in phone collection or enforcement and other procedures?

PROHIT d.o.o. invests a great deal in the education of its employees, who already have  ample practical experience acquired over the years of working for the company. Since we would like to share the acquired knowledge with both existing and potential clients, free seminars are organized regularly. The lectures at these seminars are held either by our lawyers who have several years of experience, or external experts are invited to cover specific areas (communication with difficult clients, tax aspects of claim collection, etc.). Should you need any other, tailor-made training for your employees, please write to us at info@prohit.si and we will prepare a proposal for an appropriate education program.

Common Q&A for debtors

1. I have received a writ of enforcement. How much is my debt, so I can pay it?
2. What would be the consequences if I do not pay my debt and the writ of enforcement becomes final?
3. Can I repay my debt in installments?
4. What can I do if I do not acknowledge my debt?
5. Is it possible to achieve a stay of the enforcement procedure?
6. Which items are exempt from execution i.e. which items cannot be seized in the enforcement procedure?
7. Remission of liabilities in the case of personal bankruptcy
8. When is the remission of liabilities of a bankrupt debtor not possible?
9. Which receivables are not affected by remission of liabilities?
10. Are debtors discharged of their liabilities when the enforcement procedure is stayed due to the lack of objects of execution?
1. I have received a writ of enforcement. How much is my debt, so I can pay it?

Any debt is comprised of the principal and costs of the claim collection procedure, along with the legal default interest accrued by a certain date. The amount of the principal and costs of the claim collection procedure can be seen on the first page of the writ of enforcement, while the date from which legal default interest is charged for the principal and enforcement costs can be seen in the enforcement application, which is attached to the writ of enforcement. The data necessary for the payment of the amounts owed are also evident from the enforcement application.

2. What would be the consequences if I do not pay my debt and the writ of enforcement becomes final?

A writ of enforcement becomes final if a debtor does not pay his/her debt or does not file an objection to the writ of enforcement within the time limit stated in such writ, i.e. within 8 days. The consequence of a writ of enforcement becoming final is that the court will perform inquiries ex officio about the debtor’s assets and in the case of a positive result, the court will send a final writ of enforcement to the debtor’s debtors, i.e. his/her employers, banks etc. for execution, based on the proposed means of enforcement.

3. Can I repay my debt in installments?

Any debt undergoing an enforcement procedure may be repaid in installments, by prior agreement with the creditor. However, an agreement on paying the debt off in installments does not stay the actual enforcement, which means that if seizable assets are available, the executors of the writ of enforcement will be obliged to act on it. While a stay of enforcement is permitted by law, it is up to the creditor to propose a stay of enforcement or not on the basis of an agreement on payment in installments.

4. What can I do if I do not acknowledge my debt?

If the debt is not acknowledged by you, you can file an objection/appeal against the writ of enforcement within 8 days of receipt of such writ of enforcement. The said objection/appeal shall contain the reasons and the court fees shall be paid, otherwise it will be rejected by the court either as unfounded, or as withdrawn if the court fees are not paid. In the case of a well-founded objection/appeal, the court shall set aside the writ of enforcement and refer the parties to file a lawsuit, based on which the court will rule on whether the claim is well-founded or not.

5. Is it possible to achieve a stay of the enforcement procedure?

If the enforcement procedure has already been initiated, the court may stay the procedure if the creditor filing a motion for such stay submits a document evidencing the debtor’s consent to the stay. Due to the above-mentioned legal provision, the debtor is obliged to deliver to the creditor a stay consent signed in its own hand.

For stay of the enforcement procedure, there is a legal limit on the maximum length of the stay, which is 1 year.

6. Which items are exempt from execution i.e. which items cannot be seized in the enforcement procedure?

In the enforcement procedure, it is not possible to seize the debtor’s personal possessions. An exhaustive list of such items is provided by law, as follows:

  • Clothes, footwear, underwear and other items for personal use, including bed linens, kitchenware, furniture, stove, refrigerator, washing machine and other items for household use, inasmuch all of them are vitally necessary for the debtor and members of his/her household;
  • Food and any type of fuel for heating which are needed by the debtor and members of his/her household for a period of six months;
  • Working and breeding animals, agricultural machinery and other work tools and machines which are vitally necessary for a farmer to work on the farm, as well as seeds for agricultural use and feed for the animals for a period of four months;
  • Any items which are vitally necessary for a debtor who performs a public service or any scientific, artistic or other work as a profession, so that he/she will be able to perform such work;
  • The cash of a debtor who receives regular monthly income, up to the monthly sum which is exempt from attachment by law, in proportion to the time until the next income is received;
  • Orders, medals, military presentation plaques and other awards and plaques, as well as the debtor’s wedding bands, personal letters, manuscripts and other personal notes and images/photographs of his/her family members;
  • Any devices provided to a person with disability or another type of physical impairment based on applicable regulations or purchased by such person , which are vitally necessary for his/her everyday living.
7. Remission of liabilities in the case of personal bankruptcy
  • The purpose of remission of liabilities is to enable honest and conscientious bankrupt debtors to have that part of their liabilities cancelled which cannot be repaid from their remaining assets available upon the initiation of the personal bankruptcy proceedings or acquired during the course of the personal bankruptcy proceedings until the expiry of the test period.
  • Remission of liabilities applies only to the debt incurred until a notice  of personal bankruptcy is posted on the court’s bulletin  board, and the debtor is obliged to file the proposal during the personal bankruptcy proceedings. In the majority of cases, this is done at the very beginning of the proceedings.
  • The procedure for the remission of liabilities lasts between 2 and 5 years.
8. When is the remission of liabilities of a bankrupt debtor not possible?
  • If a bankrupt debtor has been finally convicted of a crime against property or economy, which conviction has not yet been erased/expunged,
  • If at any point during the last three years before the initiation of the personal bankruptcy proceedings the bankrupt debtor provided false, incorrect or incomplete data required by the tax authority to collect taxes, because of which the competent tax authority immediately or subsequently imposed an additional tax in the amount of 4000 EUR at a minimum,
  • If the bankrupt debtor’s liabilities have already been remitted and the prescribed 10 year period from the final date of the remission decision for such liabilities has not yet expired,
  • If at any point during the last three years before the personal bankruptcy proceedings were initiated the bankrupt debtor assumed liabilities that were disproportionate to its assets, or if it disposed of its assets for free or for a small payment, or if based on its existing assets it is able to pay its liabilities in their entirety.
9. Which receivables are not affected by remission of liabilities?
  • Unpaid maintenance,
  • Compensation for any damage sustained because of reduced life activities or reduced or lost working capacity,
  • Compensation for any maintenance lost because of the death of the person providing such maintenance,
  • Priority claims as referred to in the first paragraph of Article 21 of the Financial Operations, Insolvency Proceedings and Compulsory Winding-up Act (ZFPPIPP):
    1. Salaries and compensations of salary for the last three months before the initiation of insolvency proceedings,
    2. Compensations for personal injury related to work at the debtor’s premises and any occupational diseases,
    3. Unpaid severance pays for termination of employment before the beginning of bankruptcy proceedings, to which employees are entitled by law which regulates employment relationships, but only up to the maximum amount of severance pay stipulated for those employees whose contracts are terminated based on business reasons,
    4. Salaries and compensations of salary for employees whose work has become redundant because of bankruptcy proceedings were initiated, namely for the period from the initiation of bankruptcy proceedings to the expiry of the notice period,
    5. Severance pays for employees whose employment agreements have been terminated because their work has become redundant due to the initiation of bankruptcy proceedings or during the course of such proceedings,
    6. Taxes and contributions which have to be accounted and paid by the relevant payer along with the sums referred to in points 1, 3, 4, and 5,
    7. Compensations for unused annual holidays for the current calendar year,
    8. Monetary penalties or seizure of any proceeds acquired by committing a crime, which are imposed during the relevant criminal procedure,
    9. Condition of probation requiring the debtor to return any proceeds acquired by committing a crime or to pay a compensation for any damage caused by such a crime,
    10. Fines or seizure of proceeds obtained by committing an offence, as imposed during the relevant procedure,
    11. Seizure of illegally acquired assets.
10. Are debtors discharged of their liabilities when the enforcement procedure is stayed due to the lack of objects of execution?
  • In the case of failure of enforcement due to the lack of objects of execution with the resulting stay of enforcement, the debtor is not discharged of its liabilities. In this specific case, the creditor still retains an enforceable title issued in the course of the procedure, on the basis of a valid document. The creditor may also propose refiling of the enforcement application based on the acquired enforceable title, naturally within the relevant statute of limitations. Pursuant to the current applicable legislation in force, enforcement applications may be refiled until the expiry of a 10 year period from (final) completion.
  • WHEN THE RELEVANT DECISION IS ISSUED, THE DEBTOR IS IMPOSED WITH THE OBLIGATION TO PAY THE PRINCIPAL WITH LEGAL DEFAULT INTEREST AND ALL COSTS. WITH RESPECT TO THESE SUMS, THE CREDITOR MAY ALSO DEMAND THE PAYMENT OF LEGAL DEFAULT INTEREST IF THEY ARE NOT PAID BY THE DUE DATE
  • How can debtors calculate their debt?
  • Debtors can calculate the amount of their debt using an online application available at the website of the Supreme Court of the Republic of Slovenia http://izo.sodisce.si/izo-web/spring/izracun?execution=e2s1.
Menu