Recovering debts can prove to be a challenging task if the debtor is unwilling. Often, if you have tried every other option to collect, you may need to recourse to legal channels. In Malta, one such
expedited legal procedure is the option to file a judicial letter. It is defined under Article
166A of the Code of Organization and the Civil Procedure outlined in Chapter 12 of the Laws of
Malta.
The Process of the Judicial Letter
Article 166A defines the judicial letter as a formal communication initiated through the
Courts of Malta. It aims to allow you to collect outstanding debts. The debtor is provided with a period of 30 days to respond.
The Debtor Does Not Respond
If the debtor fails to acknowledge or reply to the judicial letter within the timeframe, it assumes
the status of an executive title. This gives it the same legal standing as a
final judgment. The debtor must therefore fulfill their financial obligations as detailed in the
letter. Subsequently, the creditor may pursue further legal actions, such as
issuing warrants or garnishees, to recover the outstanding debts.
The Debtor Responds
Conversely, if the debtor responds to the judicial letter by disputing or rejecting the claims
made in it, it prevents the letter from attaining executive status. In such instances,
if the creditor wishes to pursue debt recovery, they must go before the court.
The Judicial Letter Criteria
The judicial letter 166A can only be used for debts amounting to less than €25,000. In cases where the debt is greater, the creditor may choose to reduce their claim to meet the criteria or forfeit the excess amount.
This is a useful legal mechanism because of its efficiency and cost-effectiveness. It gives the creditor the chance to obtain an enforceable judicial title in a short period. This way, you can avoid prolonged court proceedings. However, it is imperative to be careful so you don’t misuse this instrument. The judicial letter must be sworn under oath, and clear provisions must be included to inform the debtor of their right to challenge its validity.
Why is the Judicial Letter Useful
Resolving debts outside of court is generally preferable for all parties involved. It removes most of
the inconvenience, delays, and financial burdens associated with legal battles.
Should the need arise for legal intervention, a lawyer can help throughout this debt recovery
process by drafting legal letters to debtors and, if necessary, initiating proceedings under
Article 166A of the Code of Organization and Civil Procedure. For guidance and assistance
with debt recovery and other legal services, don’t hesitate to reach out to Sciberras
Advocates at [email protected]
This article is for information purposes only and should not be construed as legal advice.
Schiberras Advocates
Sciberras Advocates founded by Dr Adrian Sciberras, is a law firm based in Malta. The firm
prides itself to be multi-disciplinary, innovative and flexible in order to meet the changing
times and any challenges in the local and international legal scenario. No matter what
your private or corporate complex demands are, Sciberras Advocates offers practical
and cost-effective legal solutions to achieve your desired results. You may reach Sciberras
Advocates by phone on +35627795222 or via email on [email protected].
Article written by Ms Charlene Sciberras for Sciberras Advocates.
