Glossary. 

Complicated terms made simple. We know that many financial terms are hard to get. That's why we have worked even harder to make them easy to understand. And if there's still something that's not clear – get it in touch: we're happy to help.

  • A debtor written statement where accepts their debt. Partial payment or interest payment is also the debt acceptance. In some cases is the debt acceptance also prerequisite for creditor to negotiate about payment schedule of the debt.

  • A person who accepts the obligation to satisfy the creditor's debt in writing if the debtor does not properly satisfy the claim (ie the guarantor is obliged to fulfill the claim instead of the debtor upon the creditor's request). Collection Agency - A company that deals with debt recovery, both claims on its own (including receivables handed over to the collection agency on the basis of a referral contract) and receivables from its clients that it enforces on the basis of a power of attorney granted by its clients.

  • This is a contractual transfer of an outstanding receivable from the original creditor to a third party, even without the debtor's consent. By assigning the claim, the new creditor acquires all the rights attaching to the claim, including its collateral and accessories. There is no impact on the existence or characteristics of the claim -  is in the original amount and content.

  • Force enforcement of a judgment by a bailiff if the debtor voluntarily fails to fulfill the claim granted to the creditor by an enforceable decision. A bailiff is entitled to confiscate and monetize movable (eg car) and immovable property (eg a house), money on an account or part of the debtor's wage, all in order to satisfy the creditor's claim. In addition to the costs of the prior proceedings in which the claim was awarded to the creditor, the debtor is also obliged to pay the costs of the enforcement proceedings (the amount always depends on the amount of the claim itself) in the course of the enforcement proceedings.

  • Bail-out (guarantor) - the guarantor (avalista) undertakes to pay the debt in the particular bills for the debtor (in principle, the bill of exchange) in the event that the borrower does not pay for it himself. The guarantor holds the same responsibility for paying the bill of exchange as the debtor.

     

  • A state-licensed persons who are primarily entrusted with enforcement actions (such as a court order granting a creditor the right to a certain amount) under the law, which were not voluntarily fulfilled by the debtor.

  • A security in which a person (usually the bill of exchange) obliges another person (usually the bill holder) to pay a certain amount of money.

  • Usually a written document, which allows the debtor to be represented by a third party (eg a lawyer) to a certain extent, to the extent specified, for example for negotiation with the debt collection company. 

  • Usually a written document  - formal authorisation by the creditor which allows a debt-collection agency to initiate all legally permitted collection measures necessary to achieve the full payment of debt by the debtor..

  • It is situation where the debtor (i) has multiple creditors, (ii) has over the past 30 days overdue to such creditors (debts) and (iii) is unable to meet those obligations. This form of bankruptcy is called insolvency. If a debtor is a legal or business person, he may also be bankrupt in the form of over-indebtedness, provided that he has more than one creditor and that the sum of his liabilities exceeds the value of his assets.

      

  • Are a special court procedure in which the debtor's bankruptcy (or impending bankruptcy) is solved and the goal  is to achieve a property arrangement among the larger number of creditors.

  • A person entitled to require unpaid receivables on the debtor  (usually cash) - a claim - incurred in the majority of cases on the basis of a contract which the debtor is obliged to pay to the creditor under such a contract.

  • A company dealing with debt collection, own debts (including receivables handed over to the collection agency on the basis of a referral contract) and debts from its clients that are collected on the basis of a power of attorney granted by its clients.