Information

K.C.S. does not charge retainer fees for the services provided!

The definitions below are provided for your information, so that you become familiar with the terms used on this website in view of a possible cooperation with K.C.S.

Acceptilation

A release made by a creditor to his debtor of his debt, without receiving any consideration.

Authentic Document

An authentic document is a document drawn up or, as the case may be, received and authenticated by a public authority, by a public notary or by another person vested with public authority by the state, in the due form and terms as laid down by the law.

Bankruptcy

An insolvency situation a professional finds himself in when he cannot repay the commercial debts he owes to creditors. Debtor bankruptcy is found by a court at law, based on the bankrupt person’s statement or upon request by one or more of his creditors.

Contract

A freely consented agreement among two or more natural or legal persons, aimed at creating, altering or ceasing legal relationships, resulted from negotiations. Commercially it represents a basic document in concluding commercial transactions and a source of civil obligations.

Contested Debt

A debt whose value is contested by the debtors.

Creditor

A natural or legal person, holder of a right of claim, entitled to demand his debtor to fulfill the obligation he has undertaken, to the effect of giving, doing or not doing something.

Debt

  1. What a credited person owes.

  2. Amount of money or any other goods owed to someone. Legally, it is an obligation undertaken by a natural or legal person (debtor) towards another natural or legal person (creditor), who, in his turn, holds a debt receivable, as confirmed in a legal relationship on returning an amount of money or of goods by a certain deadline. Such obligation flows from a contract or from the law. The debt ceases once the obligation has been fully executed.

Debt Due / Receivable

The right of a natural or legal person (the creditor) on another natural or legal person (the debtor) to have an obligation executed, to return an asset, an amount of money or to render a service etc. Any debt receivable is pursued based on a clause in the contract or in keeping with the law in force.

Debtor

A natural or legal person that owes the creditor a certain amount of money, obliged to perform for the creditor an act to the effect of giving, doing or not doing something.

Enforceable Debt

A collocation describing a debt that has reached maturity, therefore whose execution, even enforcement if necessary, can be requested by the creditor. Debt enforcement varies as a function of the debt being pure and simple or affected by modalities. Thus, in the case of pure and simple debts, what is owed becomes enforceable at the moment the legal obligational relation has started. For a deferred obligation, the debt becomes enforceable only when the period of deferral has elapsed. The court may suspend debt enforceability, granting the debtor a grace period. The enforceable character of a debt ceases with its final reimbursement as well as by the effect of extinctive prescription.

Enforcement

When the debtor does not execute his obligation willingly, such obligation is fulfilled by enforcement, which is initiated by the notification of the enforcing officer, except if otherwise stipulated by a special legal provision. Enforcement, in any of the forms specified by law, takes place simultaneously or in a sequence, until the right acknowledged in the writ of execution is fulfilled, and interests, damages or any other sums afforded by law in the writ, as well as execution expenses are paid.

Garnishment

Garnishment is a form of indirect enforcement whereby sums of money, securities or other traceable movable intangible assets owed to a sued debtor by a third party are capitalized, the creditor subrogating conditionally and temporarily in the rights of the latter. A garnishment is set up upon the creditor’s request by the court officer at his place of residence or at the debtor’s headquarters or at the garnished third party’s place of residence or headquarters.

Insolvency

It involves the lack of funds to reimburse the company commercial and fiscal debts; a state of the debtor’s assets characterized by shortage of funds available for the payment of enforceable debts; the insolvency is presumed as existent when, at 30 days from maturity, the debtor has not paid his debt towards one or more of his creditors; the insolvency is incumbent when the debtor is proved incapable to pay his undertaken enforceable debts by maturity with the funds available at that time.

Insolvent

Synonym: not solvent. It refers to someone who cannot pay his debts, who is in a situation of insolvency.

Liquid debt

A collocation describing a debt whose amount is determined precisely. Debts are liquid if their objects are specified sums of money or goods quantities generically established. Debts cannot be qualified as being liquid if their amounts are still to be established in court, such as: the right to damages in reparation of a prejudice caused by a tort, the right to maintenance, etc. Such debts become liquid and can be qualified as such only when the court decision whereby they had been established is final. The liquid character of the debt is an essential requirement for the lawful compensation to become operational and for the creditor to be able to initiate oblique or revocatory actions.

Loan

Action consisting in the delivery by one person, called the lender, to another person, called the borrower, of a quantity of goods, consumable or not, and/or of a certain amount of money that the borrower is to return at maturity, under certain conditions.

Mandate/ Agency Contract

A freely consented agreement whereby a person – the mandatary/ the agent – undertakes to conclude legal acts on behalf of another person – the mandator – who grants the former such power (as laid down in Article 2009 of the Civil Code) and whom the former represents.

Although in principle it is a free superficies contract, the law does not forbid the mandatary to be paid if there is a special provision to that effect, in keeping with Article 2010 of the Civil Code.

Mediation

Mediation is an alternative way of settling disputes among two or more parties wishing to reach an agreement, with the help of a third person, specialized as a mediator. States, organizations, communities or individuals can be involved as parties in the disputes subject to mediation.

Officer of the Court/ Bailiff (UK)/Sheriff (US)

Auxiliary staff employed by the courts of law who carry out the enforcement of civil court orders mentioned in writs of execution and carry out any other functions afforded by law.

Power of attorney

It is a writ that confirms the mandate contract, whereby the mandatary/agent is enabled to act on behalf and for the mandant (principal). The power of attorney includes the powers afforded to the mandatary and the limits of his empowerment. It is a written document and must be authenticated every time that the mandatary is mandated to conclude a document in due form.

Private Deed

It is a deed that bears the signatures of the parties, regardless of its material support. It does not undergo any other formality, beside the exceptions specifically provided by the law.

Summons

A formal written invitation whereby a person is called to appear before a court of law or an authority at a certain date.

Transaction

A transaction is a contract whereby parties preclude or stop a dispute, even in the phase of enforcement, by mutual concessions or by waving rights or by transferring rights from one to the other.

In order to be proved, a transaction has to be done in writing.

Uncontested debt

A collocation describing a debt whose existence is undoubtful, i.e. it has not been the subject of a claim in court. The debt being uncontested represents a condition for initiating the next procedural steps: to formulate an application for debt enforcement, to apply legal compensation, the creditor to initiate both oblique and revocatory actions.

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