Pre-litigation: the stage of follow-up to obtain payment of outstanding invoices

Whether for civil or commercial debts, every dispute must go through a pre-litigation  phase  . Indeed, legal recovery is a last resort, both lengthy and costly, which is best avoided whenever possible.

Asexperts in amicable and legal debt recovery, we support our clients in pre-litigation to enable them to obtain payment of their unpaid invoices as quickly as possible.

What does the pre-litigation stage in debt recovery consist of?

When a creditor faces a debtor who is late in making payments, amicable debt recovery, also known as pre-litigation, often allows for the recovery of outstanding debts. Indeed, in many cases, it is not necessary to pursue legal action to recover the sums owed: the enforcement order procedure should only be initiated as a last resort.

The pre-litigation therefore consists of sending reminders to the debtor to remind him that he is late in paying his invoices and that he must therefore settle his outstanding payments as soon as possible.

Debt settlement can then be done amicably, for example, by setting up a payment plan if the debtor is experiencing temporary financial difficulties.

Why is pre-litigation essential in the event of disputes?

When a creditor has a dispute with one of their clients, they may be tempted to take the matter to court to obtain a favorable outcome. However, this approach is not recommended by debt collection experts.

There are two main reasons why pre-litigation should always be the preferred first resort:

• It is an effective, amicable technique that avoids damaging the customer relationship;
• It is also a legal obligation to ensure that the legal proceedings are not rejected by the judge.

Protecting the customer relationship

When a debtor fails to pay their debts on time, the creditor should be lenient. This could be a simple oversight, an error by the bank, the post office, or even the debtor themselves—for example, a poorly written check.

The creditor has the right to demand prompt payment of invoices. However, taking overly direct action against the debtor could damage the customer relationship, especially when there may be a valid reason for the payment delay.

This is why it is preferable to use amicable methods initially: reminders followed by formal notices before initiating legal recovery proceedings.

A legal obligation before judicial recovery

If the pre-litigation phase is unsuccessful, the creditor can legally initiate legal proceedings. Indeed, the courts require proof of an attempt at amicable debt recovery before taking any action.

Thus, a creditor who does not respect the procedure, by directly launching a legal recovery, would have their request rejected.

What is the procedure for pre-litigation proceedings?

But what exactly does the pre-litigation procedure entail ?

Amicable debt recovery consists of 2 stages:

• The reminders
• The formal notice

The reminders

The first step is to send a letter, preferably a registered letter with acknowledgement of receipt, to the debtor to inform him that he is late in making a payment.

This warning letter is often enough to elicit a response. The invoice number, date, and amount must be included in the reminder. Note that it is important to keep proof of sending and receipt in case the pre- litigation is unsuccessful.

Before sending the first reminder, it is also possible to contact the customer by phone to warn them of the impending deadline: sometimes a simple reminder is enough to obtain prompt payment of their invoices.

The formal notice

If simple reminders are not enough, a formal notice must be sent to the debtor.

This is a form of questioning that can take several forms:

• An extrajudicial document sent by bailiff;
• A registered letter with acknowledgment of receipt.

To be valid, it must be specified in the letter that the letter serves as a formal notice to fulfill an obligation, namely the payment of unpaid invoices.