Debt Collection in Cuba
Updated on Tuesday 07th June 2016
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Debt collection in Cuba is a measured attempt by a firm to collect an obligation which is past due. In usual transactions between two Cuban companies, an invoice is issued and the payment is due in a certain number of days. After this period of time expired, the payment is past due. Once a payment is past due, it becomes problematic and necessitates special action. In reality, the buyer is presently utilizing the seller’s money without compensation.
Types of procedures for debt collection in Cuba
If Cuban creditors are not able to recover their debts from bad payers, they usually appeal to a law firm in Cuba to retrieve these obligations. Generally, the methods utilized to realize debt collection in Cuba range from amicable procedure to a litigation procedure.
The amicable procedures are much quicker and less expensive than the court procedure, hence the reason all creditors are advised to first appeal to it. It consists of attempting to reach a settlement with the debtor, for example carrying out the claim in equal installments or carrying out the entire obligation at once. The debtor is generally contacted several times by telephone or email before the litigation procedure begins. For information on the debt collection procedure in Cuba, our lawyers can provide you with all the necessary details.
Types of creditors in Cuba
When it comes to debt collection in Cuba, there are three types of creditors:
1. Creditors who obtain a lien (a right offered to another by the owner of property to secure a debt, or one made by the law in the advantage of certain creditors) by statute, agreement between parts or judicial proceedings against a special property. The property has to be utilized to pay the debt to the lien-creditor before it can be utilized to pay debts to other creditors.
2. Creditors who have a priority interest. If a creditor has a priority, debt collection in Cuba has to be remunerated before of other creditors when the debtor turns out to be insolvent.
3. Creditors who do not have a lien or do not hold a statutory priority.
Our law firm in Cuba is committed to make sure your hard earned cash is delivered to you in the shortest time possible. Our lawyers are experienced in applying a reliable resolution to your particular debt collection case. If you need to know more, please contact us.