Judicial Collection is the last option that people and companies use to recover their money.
What is Judicial Collection? It is a claim that is made by the creditor against the debtor. The creditor has to do with the debtor is not paying and that has already passed over a reasonable period so that what he must meet, and therefore talk to the courts to start a lawsuit against the defaulting person.
If we pay what is owed, the Judicial Collection ends immediately and all the legal actions that exist against the debtor disappear, but if there are no payments they can have the same tombs for the debtor.
What happens if not?
If you do not cancel what you owe to a creditor, the following may occur:
Notification of the demand: the first thing that happens is that it is a judicial receiver and a notification that has a claim.
Seizure of property: if you do not cancel or advance or clarify my situation, but also a receiver in your house and take note of all your things.
Withdrawal of goods: after the seize, the withdrawal will come. They will take your goods.
Auction of goods: The third step will be the auction. They will sell your things to the highest bidder in order to settle your debt.
Trade Bulletin: Finally your records will be stained. Your name and debts are published in one of the 3 commercial bulletins that exist and are not a person able to receive credits, have a current account, take out a credit card, etc.
What is Extrajudicial Collection?
They are all the tools a creditor has to recover their money without going to trial.
What methods can companies use in an Extrajudicial Collection?
You can make phone calls, send letters or visit the debtor at home or work. In any of the 3 cases, it is more detailed information.