18 December 2023

The advantages of negotiating debts before resorting to the judicial process

Debt management is a crucial part of personal and business finances.

 When debts are left unpaid, creditors often consider initiating legal proceedings to recover what is owed to them. However, negotiating before reaching that point can bring several significant advantages to both parties involved.


          1. Avoiding Increased Interest Rates and Legal Costs

Initiating a legal process can incur substantial legal costs. Furthermore, once the process begins, interest rates on the debt may escalate, further worsening the debtor's financial situation. Prior negotiation can prevent these extra costs, helping to maintain the original interest rates and reduce the amount of judicial fees.

           2. Preserving Trust between Parties

When a legal process is initiated, the relationship between creditor and debtor tends to deteriorate. Mutual trust can be shaken, making future transactions or agreements between the parties more difficult. Opting for negotiation increases the possibility of keeping an open channel of communication and preserving the relationship of trust, thereby facilitating future agreements.

           3. Seeking Mutually Acceptable Solutions

Debt negotiation provides an opportunity for both parties to find personalized and mutually beneficial solutions. Options such as adjusted payment plans, partial debt reduction, or even deferred payment agreements can be explored. These solutions can be more flexible and adaptable to the debtor's financial situation while ensuring the creditor recovers the outstanding amount.


There is no doubt that negotiating debts before resorting to the judicial process is an intelligent strategy that offers significant advantages to both parties involved. As legal experts in this field, we understand the importance of exploring all possible avenues to resolve financial disputes effectively and fairly. However, we always emphasize negotiation as a powerful tool to achieve tailor-made solutions. We utilize our experience and legal knowledge to facilitate agreements, preserving the relationship between creditors and debtors. By prioritizing negotiation, we aim to avoid additional costs and the inherent tensions of legal proceedings, always analyzing solutions that serve the interests of both parties.

If you have debts to recover or questions about the negotiation process, please do not hesitate to contact us. We are ready to offer our legal assistance and help find effective solutions to your financial matters.

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