Debt Collection in Italy: How Foreign Creditors Recover Unpaid Debts

Updated August 2026 — Avv. Irene Damiani, Damiani & Damiani International Law Firm, Palermo

When an Italian company fails to pay, a foreign creditor’s fastest and cheapest route to recovery is almost always to act in Italy — where the debtor is based and its assets are located. Damiani & Damiani is an international law firm headquartered in Palermo, Italy, assisting creditors in the United States, the United Kingdom and across the European Union in recovering unpaid invoices and commercial debts from Italian companies. Working with local Italian counsel gives a foreign creditor a decisive home-court advantage: we obtain Italian payment orders, use European cross-border procedures and enforce them directly against the debtor before the competent Italian court.

When a foreign creditor needs an Italian debt collection lawyer

If your debtor is an Italian company, or a foreign company with assets in Italy, litigating from abroad is slow and expensive. An Italian lawyer can act where it matters — before the court in whose district the debtor is established — and can obtain and enforce a judgment without the duplication of instructing both foreign and Italian counsel. The most common scenarios we handle are unpaid invoices for goods or services, breach of a supply or distribution contract, and enforcement of a debt already recognised abroad. The single biggest mistake creditors make is waiting: delay allows the debtor to become insolvent or move assets, and it risks the claim expiring by limitation.

Step one — the out-of-court phase

The formal demand (diffida ad adempiere)

Most recoveries begin with a formal letter of demand. In Italy this is the diffida ad adempiere: a written notice giving the debtor a deadline to pay and stating that legal action will follow. Beyond its practical effect, the demand interrupts the limitation period and, in many cases, prompts payment or a negotiated solution without proceedings. For cross-border matters, the demand is drafted with the applicable law and jurisdiction in mind, so that it also prepares the ground for the procedure that will follow if the debtor does not comply.

Settlement and repayment plans (piano di rientro)

Where the debtor acknowledges the debt but cannot pay in full, a structured repayment plan (piano di rientro) or a settlement agreement is often the quickest way to recover. We negotiate terms that are enforceable — ideally reduced to a title that can be executed immediately if the debtor defaults again — so that a commercial compromise does not become a second dispute.

The decreto ingiuntivo — Italy’s fast-track payment order

The decreto ingiuntivo is the workhorse of Italian debt recovery, governed by Articles 633 and following of the Code of Civil Procedure. On the strength of written evidence — typically an unpaid invoice, a signed contract or a certified statement of account — the court issues an order to pay without a full trial. The debtor then has 40 days from service to file an opposition (Article 641 c.p.c.); if none is filed, the order becomes final and enforceable. In defined cases the court grants provisional enforceability immediately, allowing enforcement to begin even before the opposition period expires. For a foreign creditor holding proper documentation, this is usually the most efficient route to a liquid, undisputed debt.

The EU toolkit for cross-border claims

For claims within the European Union, uniform procedures allow a creditor in one member state to obtain a title that is enforceable across the Union. This is where a firm that knows the full toolkit makes the difference.

European Order for Payment (Regulation 1896/2006)

A uniform fast-track procedure for uncontested cross-border monetary claims. Once issued, the order is automatically recognised and enforceable in every member state, with no separate exequatur. It is the natural cross-border counterpart of the decreto ingiuntivo.

European Small Claims Procedure (Regulation 861/2007)

A simplified, largely written procedure for cross-border claims up to €5,000. It is cost-effective for lower-value invoices and produces a judgment enforceable throughout the EU.

European Account Preservation Order (Regulation 655/2014)

A protective measure that allows a creditor to freeze the debtor’s bank accounts in other member states before or during proceedings, without alerting the debtor in advance. It is a powerful tool to secure recovery when there is a risk that funds will disappear.

European Enforcement Order (Regulation 805/2004)

For uncontested claims, a judgment or authentic instrument can be certified as a European Enforcement Order and enforced directly in another member state, bypassing intermediate recognition steps.

Which court has jurisdiction — the Brussels Ia Regulation

Within the EU, jurisdiction over a debtor is governed by the Brussels Ia Regulation (1215/2012). As a general rule, a company is sued in the member state where it is domiciled, so an Italian company is normally pursued before the Italian courts — precisely the advantage a foreign creditor gains by instructing local counsel. Special rules apply to contracts of sale and the provision of services, and the parties may have agreed a jurisdiction clause designating a specific court. A judgment given in one member state is recognised and enforceable in the others without any special procedure, which makes coordinated cross-border recovery straightforward when it is planned from the outset.

Enforcement in Italy

A payment order or judgment is only as good as its enforcement. Once a title is enforceable, recovery in Italy proceeds through a defined sequence.

The precetto (Article 480 c.p.c.)

A formal notice served on the debtor demanding payment within a set period, failing which enforcement will begin. It is the mandatory step that opens the enforcement phase.

The pignoramento (Articles 491 and following c.p.c.)

The attachment of the debtor’s assets. It may target movable property, real estate, or — most effective in practice — sums owed to the debtor by third parties, including bank balances (pignoramento presso terzi). We identify the assets most likely to yield recovery before enforcement begins.

Judicial mortgage (ipoteca giudiziale, Article 2818 c.c.)

A payment order or judgment can be used to register a judicial mortgage over the debtor’s real estate, securing the creditor’s position ahead of other creditors.

If the debtor is insolvent

If the Italian debtor becomes subject to insolvency proceedings under the Codice della crisi d’impresa e dell’insolvenza (Legislative Decree 14/2019, which replaced the former bankruptcy law), individual enforcement is stayed and the creditor must file a proof of claim — the insinuazione al passivo — to take part in the distribution. For cross-border situations, the EU Recast Insolvency Regulation (2015/848) coordinates proceedings across member states and allows a foreign creditor to lodge its claim in the main proceedings. Here too, timing is everything: a creditor who has already obtained a payment order or a protective measure before insolvency is declared is in a far stronger position than one who waited.

The reverse direction — Italian companies recovering from foreign debtors

The same toolkit works outbound. We also assist Italian businesses in recovering debts from foreign debtors, whether inside the EU — using the European Order for Payment and the Account Preservation Order — or in non-EU jurisdictions, through our international network and, where a contract so provides, through international arbitration under the ICC Rules. The applicable law, the jurisdiction and the enforceability of any resulting title in the debtor’s country are assessed at the outset, so that the strategy leads to money recovered, not merely to a judgment on paper.

Country desks — Greece, the United Kingdom, Germany

Cross-border recovery is a matter of local knowledge as much as of EU procedure. Through our own offices and partners we handle recovery in Greece, the United Kingdom and Germany, coordinating the Italian title with enforcement in the debtor’s jurisdiction. Each country has its own timelines, costs and enforcement practice, and a strategy that works in one may be inefficient in another.

Comparison of the main recovery instruments

Time limits — do not let the claim expire

Italian law sets limitation periods (prescrizione) after which a claim can no longer be enforced. The ordinary period is ten years (Article 2946 of the Civil Code), but shorter periods apply to specific categories of claim. The period is interrupted by a formal demand or by commencing proceedings, which resets the clock. Because the applicable period depends on the nature of the debt, an early assessment is essential: acting in time not only opens the door to recovery, it prevents a valid claim from becoming unenforceable.

Why Damiani & Damiani

Damiani & Damiani is an international law firm based in Palermo, with offices and partners across Europe and beyond, working in English, Italian and Spanish. Our debt recovery practice combines Italian court expertise with a full command of the European cross-border toolkit, so a foreign creditor deals with a single team from the first demand to the recovered payment. Every matter begins with a preliminary assessment of the claim’s strength, the likely timing and cost, and the best instrument for the specific debtor — so the decision to proceed is an informed one.

To discuss a specific claim, contact our debt recovery team. You can also explore our work in litigation and dispute resolution before the Italian courts and in debt restructuring and insolvency in Italy.

Frequently asked questions about debt collection in Italy

Can a foreign company recover a debt from an Italian company?

Yes. A foreign creditor — whether based in the US, the UK or another EU country — can recover an unpaid debt from an Italian company by acting before the Italian courts, where the debtor’s assets usually are. An Italian-based law firm can obtain a decreto ingiuntivo (payment order) and enforce it directly against the debtor’s bank accounts, property or receivables. For intra-EU claims, European instruments such as the European Order for Payment allow a creditor in one member state to obtain an enforceable title valid across the Union. Acting locally, through Italian counsel, is generally faster and cheaper than litigating from abroad.

What is a “decreto ingiuntivo” and how fast is it?

The decreto ingiuntivo is Italy’s fast-track payment order, governed by Articles 633 and following of the Code of Civil Procedure. On the strength of written evidence — typically an unpaid invoice, contract or statement of account — the court issues an order to pay without a full trial. The debtor then has 40 days to file an opposition; if none is filed, the order becomes final and enforceable. It is the most common and efficient route to recover a liquid, undisputed debt in Italy, and can be requested by a foreign creditor through an Italian lawyer holding the relevant documents.

What is the difference between an Italian decreto ingiuntivo and a European Order for Payment?

Both are fast-track payment orders based on documentary evidence, but they operate at different levels. The decreto ingiuntivo is a purely Italian remedy (Art. 633 c.p.c.), enforceable in Italy. The European Order for Payment (Regulation 1896/2006) is a uniform EU procedure for cross-border claims: once issued, it is automatically recognised and enforceable in every member state, without a separate exequatur. For a foreign creditor pursuing an Italian debtor, the choice depends on where the assets are and whether the claim is cross-border; an Italian lawyer will select the instrument that leads to the quickest enforceable title.

Which court has jurisdiction over an Italian debtor?

Within the EU, jurisdiction is governed by the Brussels Ia Regulation (1215/2012). As a general rule, a debtor is sued in the member state where it is domiciled, so an Italian company is normally pursued before the Italian courts — an advantage for a foreign creditor working with local counsel. Contracts may also contain a jurisdiction clause designating a specific court, and special rules apply to contracts of sale and services. A judgment obtained in one member state is recognised and enforceable in the others without special procedure, which makes coordinated cross-border recovery straightforward.

How long does debt recovery in Italy take?

Timing depends on whether the debt is disputed. An undisputed claim supported by written evidence can lead to a decreto ingiuntivo within a few weeks to a few months, after which the 40-day opposition period runs. If the debtor files an opposition, the matter becomes ordinary litigation and can take considerably longer. Enforcement — through precetto and pignoramento — adds further time depending on the assets targeted. A well-documented claim, handled from the outset by an Italian lawyer, is the single biggest factor in keeping the process fast.

What happens if the Italian debtor is insolvent or in bankruptcy?

If the debtor is subject to insolvency proceedings under Italy’s Codice della crisi (Legislative Decree 14/2019), individual enforcement is stayed and the creditor must file a proof of claim (insinuazione al passivo) to participate in the distribution. For cross-border situations, the EU Recast Insolvency Regulation (2015/848) coordinates proceedings across member states and lets a foreign creditor lodge its claim. Acting early is critical: a creditor who secures a payment order or a protective measure before insolvency is declared is in a far stronger position than one who waits.

How much does debt collection in Italy cost?

Costs typically include court fees, the lawyer’s fees and, for enforcement, bailiff expenses. A decreto ingiuntivo for an undisputed claim is relatively inexpensive and proportionate to the amount claimed; contested litigation costs more. Under Italian rules, the losing party is generally ordered to reimburse the winner’s legal costs, so a large part of the outlay can be recovered from the debtor. A Palermo-based firm acting locally avoids the duplication of instructing both foreign and Italian counsel. A preliminary assessment allows costs and prospects to be estimated before any action is filed.