Debt collection in Slovenia

The debt collection procedure in Slovenia begins with an analysis of the debtor’s financial position, business activity, payment history, available contractual and accounting documents, pending court cases, enforcement exposure and insolvency indicators. For Slovenian debtors, this analysis should also include a review of publicly available information, including company data and insolvency publications available through AJPES, as well as any signs that the debtor may already be involved in enforcement or insolvency proceedings. This assessment determines whether the claim should first be pursued amicably, through a payment order, through ordinary court proceedings, through enforcement based on an authentic document or within insolvency proceedings.

If the debtor does not have active insolvency or enforcement obstacles and continues to operate, it is usually advisable to start with informal amicable debt collection. This stage may include a written demand for payment, structured reminders, settlement negotiations and a proposal for voluntary performance before court proceedings are initiated.

Amicable settlement options may include payment of the full debt, an instalment schedule, return of goods, transfer of debt to a third party, set-off, exchange of services or goods, or another commercially reasonable arrangement accepted by the creditor. All negotiations should be documented so that the creditor can later prove the debtor’s response, any acknowledgement of debt and the reasons for moving to court proceedings if voluntary payment is not achieved.

Communication with the debtor may be carried out by post, email, telephone or electronic messaging channels, provided that the creditor preserves evidence of the demand, delivery attempts and the debtor’s replies. The purpose of this stage is to establish contact with the debtor’s authorised representatives, clarify whether the debt is disputed and determine whether voluntary payment or settlement is realistic.

If amicable debt collection does not produce a reliable payment arrangement, or if the initial review shows that the debtor is disputing the claim, concealing assets, ignoring demands or showing signs of insolvency, the creditor should proceed to judicial debt collection or enforcement procedures available under Slovenian law.

Before initiating legal action, the creditor should assess the statute of limitations. The Slovenian Code of Obligations establishes a general limitation period of 5 years. Claims under commercial contracts, as well as claims for reimbursement of expenses incurred in connection with those contracts, become time-barred after 3 years. The parties cannot extend or shorten the statutory limitation period by agreement, nor can they agree that limitation will not run for a certain period.

The running of the statute of limitations may be interrupted if the debtor acknowledges the debt. Acknowledgement may be made not only by a direct written statement, but also indirectly, for example by partial payment, payment of interest or provision of security. A written or oral demand by the creditor alone does not interrupt limitation.

For claims arising from contracts for the international sale of goods, the 1974 UN Convention on the Limitation Period in the International Sale of Goods may apply where its territorial and substantive requirements are met. Under this Convention, the limitation period is generally 4 years for claims falling within its scope.

For commercial late payment, the creditor should also assess whether statutory default interest and fixed recovery compensation may be claimed. In B2B transactions within the EU framework, late payment rules may allow the creditor to claim default interest and a fixed recovery amount in addition to the principal debt, where the conditions for such claims are met.

Depending on the cost of the claim and evidence of debt, the legislation provides for the following options for judicial debt collection: 

1. General claim proceedings are initiated by filing a claim with the competent Slovenian court. After the claim is filed and the court fee is paid, the court examines whether the claim is suitable for consideration and serves it on the defendant. The defendant generally has 30 days to file a statement of defence. If the defendant does not respond and the statutory conditions are met, the court may issue a default judgment.

During preparations for the main hearing, the court performs a preliminary examination of the claim, serves the claim on the defendant, receives the statement of defence, serves the defendant’s response on the claimant and schedules the preparatory hearing and the main hearing. The court generally serves the claim on the defendant within 30 days after the proceedings have commenced, and the defendant’s response is served on the claimant within 30 days after the court receives it.

After receiving the statement of defence, the court schedules a preparatory hearing. The hearing must be scheduled so that the parties have sufficient time to prepare, and not earlier than 30 days after receipt of the summons. At the preparatory hearing, the court openly discusses the legal and factual aspects of the dispute with the parties, allows the parties to supplement their arguments and legal positions, addresses evidence, considers procedural objections and encourages a court settlement where settlement is possible.

During preparations for the main hearing, each party may file preparatory submissions stating the facts it intends to rely on and the evidence it intends to present. Without a court summons, each party may generally file up to two preparatory submissions, and they must be filed no later than 15 days before the preparatory hearing; otherwise, the court may disregard them.

If the dispute is not resolved by settlement, the case proceeds to the main hearing. The court may hold the first main hearing immediately after the preparatory hearing where the procedural conditions for doing so are met. At the main hearing, the court examines the evidence and hears the parties’ positions. When the court considers that the case has been sufficiently heard, it closes the main hearing and renders judgment. If the judgment is not announced immediately, the court may postpone the announcement, and in complex cases the judgment may be served on the parties in writing within 30 days after the conclusion of the main hearing.

A party may appeal a judgment of the court of first instance within 30 days from service of the judgment. In disputes involving bills of exchange and cheques, the appeal period is 15 days. A timely appeal prevents the judgment of the first instance from becoming final in the challenged part. The court of second instance usually decides on the appeal without a hearing, but it may schedule a hearing if this is necessary to examine evidence, establish facts correctly or remedy procedural violations.

After the decision of the court of second instance, a party may file a request for admission of revision with the Supreme Court within 30 days from service of the appellate decision. If the Supreme Court grants admission of revision, the party must file the revision within 15 days after service of the Supreme Court’s decision granting admission. Revision is an extraordinary legal remedy and is generally limited to important legal issues, serious procedural violations and incorrect application of substantive law. Filing a revision does not in itself prevent enforcement of the second-instance decision.

2. The payment order procedure and enforcement based on an authentic document are used for overdue monetary claims when the debt is supported by documents that have higher evidential value under Slovenian law.

For a payment order under the Civil Procedure Act, reliable documents may include official documents, authenticated private documents, bills of exchange and cheques with protest and return invoices where necessary, extracts from certified business books, invoices and documents that have the meaning of public documents under special rules. The payment order may also be issued by the court ex officio where ordinary claim proceedings have already been initiated and the statutory conditions for a payment order are met.

If the claim does not exceed EUR 2,000, the court may issue a payment order without an authentic document, provided that the claim is due, the action states the basis and amount of the debt, and evidence is provided to establish the truth of the claim. This exception does not apply to commercial disputes.

Separately, Slovenia also allows enforcement based on an authentic document under the Enforcement and Securing of Claims Act. This route is especially relevant for invoice-based monetary claims. The application is filed electronically, and the Local Court in Ljubljana has exclusive jurisdiction for this procedure. In this procedure, the court may issue an enforcement order based on an authentic document, which combines a payment order with authorisation of enforcement against the debtor’s assets if the debtor does not file a justified objection.

The debtor may object to a payment order within 8 days after service, or within 3 days in disputes concerning bills of exchange and cheques. If no objection is filed in time, the payment order or enforcement order becomes final and enforceable. If a justified objection is filed against an enforcement order based on an authentic document, the court annuls the part authorising enforcement and the application is treated as a civil action in further proceedings.

3. The small claims procedure applies in disputes where the claim value does not exceed EUR 2,000, and in commercial disputes where the claim value does not exceed EUR 4,000. The procedure is regulated by Chapter 30 of the Civil Procedure Act. Small claims are generally conducted before a local court, while commercial small claims are heard by a district court.

This procedure is primarily written and procedurally concentrated. The claimant must state all facts and submit all evidence in the action, while the defendant must do so in the defence plea. Each party may then file one preparatory plea, and facts or evidence submitted later are ignored. The deadlines for the defence plea and preparatory pleas are 8 days.

A judgment or a decision ending a small claims dispute may be appealed within 8 days. The appeal is limited to serious violations of civil procedure and violations of substantive law. In commercial small claims, only the party that has announced its intention to appeal may file an appeal against the judgment. Revision is not available in small claims disputes.

After receiving a final court decision, if the debtor does not voluntarily comply with the decision, the creditor should initiate enforcement proceedings. The voluntary performance period begins on the day after the decision is served on the debtor. Claims established by a final court decision, a decision of another competent authority or a court settlement are generally subject to a 10-year limitation period, even if a shorter limitation period applied to the original claim.

In Slovenia, enforcement may be allowed on the basis of an enforceable title or an authentic document. The enforcement request must identify the creditor and the debtor, the enforceable title or authentic document, the debtor’s obligation, and the requested means and object of enforcement.

For monetary claims, enforcement measures may include the sale of the debtor’s movable property, the sale of immovable property, the transfer of the debtor’s monetary claims, redemption of other proprietary or material rights and book-entry securities, the sale of a company member’s stake, and the transfer of money held at a payment institution such as a bank.

Bank account enforcement is a particularly practical enforcement measure. On the basis of a court decision on enforcement, the payment institution must freeze the debtor’s funds up to the amount stated in the enforcement decision and, once the decision becomes final, transfer the amount to the creditor. A bank may also be required to provide information on the debtor’s accounts and explain how it executed the enforcement decision.

For judgments issued in another EU Member State in civil and commercial matters, Regulation (EU) No 1215/2012 applies. Such judgments are recognised in Slovenia without any special recognition procedure and are enforceable without a declaration of enforceability, provided that the creditor submits a copy of the judgment and the certificate issued under Article 53 of the Regulation.

If the debtor shows signs of permanent illiquidity or long-term insolvency, debt recovery in Slovenia may move from individual enforcement to insolvency proceedings. Under Slovenian insolvency rules, insolvency may exist where the debtor has been unable to pay all due obligations for a longer period, or where the debtor has become long-term insolvent because the value of its assets is lower than the amount of its liabilities. For a legal entity, entrepreneur or private person, permanent illiquidity may be presumed if the debtor is more than two months late in fulfilling one or more obligations in a total amount exceeding 20 percent of the obligations shown in the last annual report before those obligations became due.

A bankruptcy petition may be filed by the debtor, a responsible shareholder, a creditor or another authorised petitioner. A creditor must demonstrate the likelihood that its claim against the debtor will be successful and that the debtor is more than two months late in paying the claim. Once bankruptcy proceedings are opened, individual enforcement is generally replaced by collective satisfaction of creditors through the bankruptcy estate, subject to the rules on secured claims, priority claims, ordinary claims and subordinated claims.

Information on Slovenian insolvency proceedings is published through AJPES, the Agency of the Republic of Slovenia for Public Legal Records and Related Services. Notices on the opening of proceedings, court decisions, lists of verified claims, reports of administrators and other insolvency documents are published publicly. There is a statutory presumption that parties and other persons become aware of published court decisions, petitions and other legal acts eight days after publication.

In bankruptcy proceedings, creditors must notify their claims within three months from the day on which the notice of opening bankruptcy proceedings is published on AJPES. In compulsory settlement proceedings, claims must be submitted within 30 days after publication of the notice on AJPES. In compulsory settlement, late filing does not remove the claim itself, but it may result in the loss of voting rights.

The insolvency procedure may also be relevant where the creditor has grounds to examine the conduct of the debtor’s management, supervisory bodies or persons who influenced the debtor’s financial conduct before bankruptcy. Liability is not automatic merely because the company failed to pay its debts. However, under Slovenian insolvency rules, members of management may be liable to creditors for damage suffered because the creditors did not receive full payment in bankruptcy if bankruptcy proceedings were opened and the management failed to perform statutory insolvency duties, including the duty to file for bankruptcy in time, or acted contrary to statutory duties applicable in threatened insolvency, insolvency or compulsory settlement situations.

Members of the supervisory board may also incur liability where creditors suffered damage because they were not paid in full in bankruptcy and this resulted from a breach of the supervisory board’s statutory duties. Such liability is assessed on the basis of the person’s role, duties, conduct, causation and the statutory grounds for liability. Claims of this type are pursued for the account of all bankruptcy creditors, and compensation is paid to the company as the bankruptcy debtor, thereby increasing the estate available for distribution. The claim may be brought by the bankruptcy administrator or by a creditor entitled to perform procedural acts in the bankruptcy proceedings.

The creditor should also consider whether the debtor transferred assets, granted preferences or failed to take legal action before bankruptcy in a way that reduced the estate available to creditors. Slovenian insolvency law allows creditors and the bankruptcy administrator to challenge legal acts of the debtor, including omissions, where the act resulted in a reduction of the net value of the debtor’s assets so that other creditors may receive lower payment, or where a particular creditor obtained more favourable conditions for payment of its claim.

For a challenge to succeed, the person benefiting from the act must generally have known or should have known that the debtor was insolvent at the time of the act. However, unpaid transactions or transactions for disproportionately low counter-performance are treated more strictly: they may be challenged even without proving this knowledge requirement. Omissions may also be challenged where the debtor lost a property right or incurred a property obligation because it failed to act.

As a rule, challengeable acts are those performed from one year before the bankruptcy petition was filed until the opening of bankruptcy proceedings. Unpaid acts or acts performed for disproportionately low counter-performance may be challenged if they were performed within 36 months before the bankruptcy petition and before the opening of bankruptcy proceedings. In addition, after the 2023 amendments to the Slovenian insolvency framework, certain legal acts performed even before the standard challenge period may also be challenged if it is proven that the debtor was already insolvent at the time of the act or that the act caused the debtor’s insolvency.

If the challenge is successful, the value transferred out of the debtor’s estate may be returned to the bankruptcy estate or otherwise restored for the benefit of creditors. This may increase the assets available for distribution and may be especially important where the debtor transferred assets to related parties, preferred selected creditors, disposed of assets without adequate counter-performance, granted security shortly before bankruptcy or allowed valuable rights to expire.

If you need support with international debt collection in the Republic of Slovenia, Grandliga can assist at different stages of the recovery process: assessing the debtor’s status and available evidence, conducting amicable recovery, pursuing judicial debt collection, initiating or supporting enforcement proceedings, and protecting the creditor’s interests where the debtor shows signs of insolvency.

# DEBT COLLECTION AGENCY SLOVENIA

12.04.2024

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