Litigation (or judicial debt collection) begins when amicable reminders and formal notices have proven ineffective. The company then takes legal action: a payment order, a provisional injunction, or a summons, often with the assistance of an attorney or a judicial officer.
Example
A €15,000 invoice remains unpaid despite the formal notice. The case is forwarded to the attorney along with the complete history of collection efforts and supporting documentation; a payment order is sought from the court.
Why It’s Important
Litigation costs time and money: it’s best to proceed with a complete case file and at the right time. Keeping close track of cases also helps ensure that deadlines aren’t missed.
For more information: out-of-court debt collection or litigation, and Aston AI’s litigation module.
See also: formal notice, delinquent customer, automatic escalation.
