Recovering a debt in Romania involves a structured set of legal instruments – from the simplified payment order procedure to full enforcement proceedings before the Romanian courts – and the appropriate route depends on whether the claim is undisputed, the debtor's asset position, and whether there is a cross-border dimension. Romanian procedural law provides creditors with effective tools, but navigating them efficiently requires an early assessment of evidence, jurisdiction, and enforcement strategy. Ferraz & Whitmore advises international businesses and funds at every stage of the process, from initial demand through to asset realisation.
When Businesses Typically Need Debt Recovery Support in Romania
International creditors most frequently seek legal assistance in Romania when a Romanian counterparty has stopped responding to payment demands, when a contractual payment deadline has passed without settlement, or when a debtor shows early signs of financial distress. Common triggers include unpaid invoices from Romanian distributors or suppliers, unremitted licence or franchise fees, disputes over construction or service contracts, and overdue payments following a business sale.
The decision stage – when a creditor has already exhausted informal channels and needs a concrete legal plan – is precisely when early professional involvement delivers the most value. Acting before a debtor's assets are dissipated or formal insolvency proceedings are opened preserves the full range of recovery options.
Core Legal Instruments Under Romanian Law
Payment Order Procedure (Ordonanță de Plată)
Romania's payment order procedure, governed by Articles 1,014–1,025 of the Civil Procedure Code, is designed for uncontested or lightly contested monetary claims. Where the debt arises from a contract and is certain, liquid, and due, a creditor may apply to the competent court without filing a full civil action. The court examines the claim on the basis of written evidence – typically the contract, invoices, and proof of delivery – and may issue an order within a relatively short timeframe. If not challenged within the statutory period, the order becomes enforceable in the same way as a final judgment.
This procedure is particularly well-suited to unpaid invoice claims where documentary evidence is complete. It avoids the delays associated with ordinary contentious proceedings, making it the preferred first step for straightforward debt collection matters.
Ordinary Civil Proceedings
Where the debtor contests the claim, where the amount is disputed, or where the creditor needs to establish liability beyond the terms of a single document, ordinary civil proceedings before the Romanian courts are necessary. First-instance courts (judecătorii or tribunale, depending on the value of the claim) hear the case, with appeals available to the Courts of Appeal and, on points of law, to the High Court of Cassation and Justice. Timelines vary significantly depending on court workload and procedural complexity.
Engaging experienced local counsel at the outset reduces the risk of procedural missteps that can delay or undermine the claim.
Arbitration and Alternative Dispute Resolution
Where the underlying contract contains a valid arbitration clause, the creditor may be required – or may choose – to pursue recovery through arbitration. Romanian courts generally respect domestic and international arbitration agreements. Awards rendered by recognised arbitral institutions are enforceable in Romania through the standard exequatur procedure, which is less burdensome than in many jurisdictions.
Interim Measures and Asset Freezing
One of the most important steps in any debt recovery matter is securing the debtor's assets before a final judgment is obtained. Romanian procedural law allows creditors to apply for provisional measures, including the freezing of bank accounts and the sequestration of movable or immovable property, where there is a risk that the debtor may dissipate or conceal assets. These applications are made to the court and must be supported by evidence of the claim and the risk of asset removal.
For cross-border situations involving a Romanian debtor with bank accounts in another EU member state, the European Account Preservation Order (EAPO), established under Regulation (EU) 655/2014, provides a powerful complementary tool. The EAPO allows a creditor to obtain an ex parte order freezing the debtor's bank account in another EU member state without prior notice to the debtor. It is available to creditors domiciled in the EU and applies in all EU states except Denmark. Regulation (EU) 655/2014 also includes an account information mechanism that can assist creditors in identifying which banks hold the debtor's funds where that information is not already known.
If you are concerned that a Romanian counterparty may be moving assets or is approaching insolvency, early legal advice is essential. Contact our team at info@ferrazwhitmore.com or visit our contacts page to discuss interim protective measures.
Enforcement of Judgments in Romania
A Romanian judgment, once final and enforceable, is executed through the bailiff system (executor judecătoresc). Enforcement may target bank accounts, receivables, movable assets, real property, or shares held by the debtor. The creditor must obtain an enforcement title and instruct a bailiff, who then proceeds under the supervision of the court. Where the debtor is a commercial entity, information on registered assets and shareholding structures can be obtained from the ONRC (the Romanian Trade Register).
Late payment interest accrues in accordance with Romanian law and, where applicable, the terms of the contract. The statutory rate for commercial debts is linked to the National Bank of Romania's reference rate plus a margin set by government ordinance; the applicable rate depends on the period in which the debt falls due and whether the contract specifies an alternative rate.
Cross-Border Debt Recovery: EU and International Dimensions
European Payment Order
For uncontested cross-border monetary claims within the EU, the European Payment Order (EPO) under Regulation (EC) 1896/2006 provides a streamlined route. Proceedings are conducted on standard forms and, if the debtor does not oppose the order within the prescribed period, it becomes enforceable across all EU member states without the need for an exequatur declaration – with the exception of Denmark. This makes the EPO a particularly efficient instrument where a creditor based outside Romania holds an uncontested claim against a Romanian debtor, or where a Romanian creditor pursues a debtor in another EU state.
Recognition and Enforcement of Foreign Judgments
Where a creditor holds a judgment obtained in a non-EU country and seeks to enforce it in Romania, the recognition process is governed primarily by bilateral treaties and, in their absence, by Romanian private international law rules. The position has been evolving with the broader adoption of the Hague Judgments Convention 2019. That Convention is currently in force for EU member states (except Denmark) as well as Ukraine and Uruguay. It will apply to the United Kingdom from 1 July 2025 – but only for proceedings commenced after that date; earlier UK judgments against Romanian debtors must rely on the Hague Convention of 2005 (where exclusive jurisdiction clauses were agreed) or on national exequatur rules. Albania and Montenegro will be bound from 1 March 2026, and Andorra from 1 June 2026.
Creditors holding older UK judgments, or judgments from jurisdictions not party to any relevant convention, should obtain a detailed assessment of enforceability before committing to enforcement proceedings in Romania.
Our team regularly advises on multi-jurisdictional recovery strategies. For a comparative perspective on recovery procedures in other markets, see our analysis of recovering debt involving a Singapore trading company or our service page on debt recovery in India.
Insolvency Considerations and the Intersection with Debt Recovery
When a Romanian debtor is experiencing financial difficulties, debt recovery and insolvency law intersect in ways that can significantly affect the creditor's position. Once formal insolvency proceedings are opened under Romanian Law No. 85/2014, unsecured creditors must file their claims in the insolvency procedure, and individual enforcement actions are generally suspended. Creditors who have already obtained and registered an attachment before the opening of insolvency proceedings may retain a preferential position, underscoring the importance of acting promptly.
Understanding the interplay between debt recovery and restructuring is therefore critical. Further detail on insolvency and restructuring options in Romania is set out in our dedicated page on bankruptcy and restructuring in Romania.
Typical Pitfalls in Romanian Debt Recovery
- Incomplete documentation: Romanian courts require original or certified copies of contracts, invoices, and delivery evidence. Missing documents can delay or defeat a payment order application.
- Prescription periods: Romanian law imposes limitation periods on contractual and tortious claims. Allowing a claim to become time-barred is one of the most common and avoidable reasons for loss of recovery rights.
- Debtor insolvency: Failing to monitor a debtor's financial position and register a claim early in insolvency proceedings can result in the creditor receiving little or nothing.
- Incorrect identification of the debtor entity: Romanian commercial debtors are often part of group structures. Pursuing the wrong entity, or failing to trace assets across related companies, wastes time and costs.
- Ignoring interim measures: Waiting for a final judgment before applying for asset freezing can allow a debtor to dissipate funds in the interim period.
- Late payment interest calculation errors: Incorrectly calculating or claiming late payment interest can undermine the credibility of a claim and result in a lower award.
- Unenforced foreign judgments: Assuming that a foreign judgment will be straightforwardly enforceable in Romania without prior legal review can lead to unexpected procedural delays.
Self-Assessment Checklist for Creditors
Before instructing counsel, consider the following:
- Do you hold a complete set of original or certified contractual documents and invoices?
- Has a formal written payment demand been sent, and is there a record of the debtor's response (or silence)?
- Is the limitation period still running, or is it at risk of expiring within the next few months?
- Do you have information about the debtor's assets in Romania – real property, bank accounts, registered shareholdings?
- Is there a jurisdiction or arbitration clause in the contract, and if so, does it designate Romanian courts or another forum?
- Are there any indications that the debtor is insolvent or is in the process of transferring assets?
- If you hold a foreign judgment, when were proceedings commenced and in which jurisdiction?
How Ferraz & Whitmore Approaches Debt Recovery in Romania
Our approach begins with a structured assessment of the claim, the debtor, and the available evidence. We advise on the most appropriate procedure – payment order, ordinary proceedings, arbitration, or a combination of interim measures and negotiated settlement – based on the specific facts rather than a standard template. Where relevant, we coordinate with local Romanian law firms that we work with on a consistent basis, maintaining oversight of the strategic direction of the matter throughout.
For cross-border creditors, we integrate Romanian recovery with broader multi-jurisdictional considerations, including the use of EU instruments such as the EPO and EAPO, and advise on the enforceability of foreign judgments in Romania and Romanian judgments abroad. Our experience with international asset recovery across multiple jurisdictions enables us to identify the most effective sequence of steps for clients pursuing Romanian debtors with assets in more than one country.
We work with corporate clients, financial institutions, investment funds, and high-net-worth individuals on a referral and direct instruction basis. Our communications are conducted in English and, where needed, we coordinate Portuguese, French, and Spanish-language documents for clients from those jurisdictions.
To discuss your debt recovery matter in Romania, please write to info@ferrazwhitmore.com or use our contacts page. We will revert with an initial assessment of the available options and the steps required to protect your position.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. Ferraz & Whitmore assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@ferrazwhitmore.com.