How to Avoid Unnecessary Costs When Claiming Unpaid Invoices

 

Verify the debtor’s solvency

Before starting any claim, it is vital to check whether the debtor has the economic capacity to pay. Requesting a solvency report is a basic tool to understand their situation: turnover, possible debts with other creditors or pending proceedings.

When dealing with a company, it is also advisable to gather information about the administrator and other linked companies. In certain cases, directors may be held personally liable if there are irregularities. Moreover, if there has been a succession of companies to avoid debts, the new company could be held responsible for payment.

Check their insolvency status

Another key step is to find out whether the debtor company is in insolvency or pre-insolvency proceedings. This can mean that their assets are blocked or that there are numerous other claims, reducing your chances of recovery. This preliminary check helps avoid unnecessary costs and wasted time.

Identify possible assets to seize

Checking if the debtor has real estate or other seizable assets is crucial to know whether there is a realistic chance of recovering the debt. A simple registry search can identify properties and reveal whether they are free of charges or already mortgaged or seized. If the assets have low or no encumbrances, the likelihood of success increases.

Look for signs of insolvency

Certain clues can indicate the debtor’s real situation: multiple seizure annotations, ongoing foreclosure proceedings, or no business activity are all warning signs. If the company has ceased operations and owns no assets, the chances of recovery drop sharply. However, if it remains active, you may be able to seize receivables from third parties or future income.

Claiming a debt without reliable information can be costly. For this reason, at Valero Tax Legal we always recommend analysing each case carefully, planning the strategy in detail and weighing the cost-benefit ratio before starting any legal action. A well-prepared, viable claim helps protect your company’s liquidity and avoids unnecessary expenses.