Top-Rated Debt Collection Agency in Iceland
Fast and reliable debt collection in Iceland - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
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Recovering your debt in Iceland is easiest through this method.
Debitura is a debt recovery specialist in Iceland, providing a wide range of services such as accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. Our team of experienced professionals is well-versed in Iceland's debt collection laws and regulations, which enables us to offer efficient and effective solutions to assist businesses in recovering outstanding debts.
Get unwavering support throughout the entire process.
Tailored debt recovery plan.
We have a team of over 500 international debt collection experts.
Achieving a success rate of 87% at the most affordable cost.
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Jonatansson & Co. Legal is a reputable law firm based in Reykjavík, Iceland. With our experienced team of legal experts, we offer comprehensive legal services, providing trusted guidance and effective solutions to meet your legal needs
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The ultimate guide about debt collection in Iceland
Are you having trouble getting money from a company or person in Iceland that you're owed? You've come to the right place! We've helped many other businesses get their money back from Iceland. Collecting debt in Iceland can be hard because of language barriers, different laws and customs, and the distance. But it's easier when you work with a collection agency that knows the laws and customs of that country.
At Debitura, we focus on treating people well and try to get your money back while still having a good relationship with the person who owes you. We also make sure our actions don't harm your reputation. If you're interested in trying to collect the debt on your own, this guide will show you how to do it step by step. If you prefer to work with a local law firm, we can help connect you with one.
Debitura can help you collect debt from Iceland and many other countries. You can start the process by giving us information about your claim. Within 24 hours, we'll look at your case and give you 3 options for lawyers in Iceland who can help you collect the debt. We use a combination of focusing on treating people well and using technology to get results and make communication better. This approach helps us get the money you're owed while also keeping good relationships with the people who owe you. Also, we work with a network of different people and companies, including lawyers, to help us get the job done. We value all these connections, whether they're big or small.
Upload claim
Begin the process of collecting your outstanding debts in Iceland now, completely free. Simply create a free profile and upload your case within 2 minutes.
Pre-legal
We use our tried-and-true pre-legal recovery process to attempt to collect your claim during the first 3 months, with a 100% no-cure-no-pay guarantee.
Legal
If your outstanding amount remains unpaid after the pre-legal phase, we offer you 3 quotes from our regional debt collection lawyers to assist you with the next steps.
24/7 updates
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Iceland
Are you having trouble getting money from someone in Iceland that you're owed? We can help make it easy for you.
When trying to collect debt in Iceland, the person who owes the debt is called the "debtor" and the person who is owed the debt is called the "creditor". If the person who is owed the debt collects it themselves, it's called "first-party collection". If they ask someone else to collect the debt, it's called "third-party collections.
The debt collection process in Iceland
The way of getting debt paid back in Iceland usually involves multiple steps.
The picture below shows the normal steps we take to collect debt in Iceland:
1 Upload your claim:
To get help recovering debt, you can work with a company that specializes in collecting debt. If you use Debitura, the first step is to give them information about the debt you're trying to collect, usually by uploading it to their website. Debitura will then give you 3 options for companies in the country where the person who owes you money is located. This service is free and doesn't require you to make any further commitment.
2 Amicable collection:
When trying to collect a debt, we usually start by sending friendly reminders through emails, text messages, letters, and other ways of communicating in the country where the person who owes you the debt is. We want to make sure the person knows they owe you money and try to get them to pay or make a plan to pay it back. We also offer a service where you only have to pay us a small fee if we are able to collect the debt for you. So, using our service to try and collect debt is risk-free for you!
3 Evaluation:
If you haven't gotten your money from the person who owes you after trying to talk it out, it's time to figure out what to do next. We'll look at things like how much money is involved, the chance that you'll get paid, and other important details to help you decide what to do. There are generally three options for what to do next.
A Surveillance:
If the amount of money that you're owed is less than $2,000-$5,000, it's often not worth it to go through more legal steps to collect it. In this situation, we suggest "debt surveillance" where we will keep trying to contact the person who owes you the money and try to reach an agreement to pay it back.
B: Legal collections:
It's usually a good idea to use the legal system for big claims. The steps you need to take will depend on the details of your claim. Usually, it will take about a year and a half to finish the process.
C: Debt enforcement:
If the person who owes you money has admitted they owe you or you have a legal document that says you're right, you can use a special court to make them pay you.
Amicable collection in Iceland
Debitura offers a simple and efficient way for you to try to collect debt from someone in Iceland. You give us information about what you're owed, and we'll start working on it within 24 hours.
We will contact the person who owes you money through different methods, such as email, text, letters, phone calls, and social media. Our goal is to either:
A) get the person to pay the whole amount or
B) to agree to a plan to pay it back.
If the person disagrees that they owe the money, we can not use this process and would have to go straight to legal action to try to collect the debt.
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Get started with
amicable debt collection
Upload your claim and get started with our 100% no-cure-no-pay collection solution.
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Legal collection in Iceland
If the person you're trying to get money from doesn't pay during a friendly conversation or they disagree that they owe you money, we can offer you 3 options for lawyers who can help. If talking doesn't work, the lawyer will talk to the person and try to come to an agreement for them to pay. If that still doesn't work, the lawyer can go to court and get a court order for the person to pay. This court order can then be used to make them pay the money they owe you.
The amount you have to pay for a lawyer to help you with your claim can depend on how complicated it is and how big it is. To get the best deal, we suggest you look at prices from different lawyers. Debitura makes it easy for you to do this by just clicking a few times.
Get started with
legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Iceland
If you have proof that the person who owes you money has agreed to pay it, or a court has said they have to, you can ask a special court called a bailiff's court to make them pay in Iceland.
The way we handle your case and how much it will cost can vary depending on your specific situation.If you give us information about your case on Debitura's website, we can quickly assess it and provide you with 3 options for how much it will cost and how to proceed, within 24 hours.
Get started with
debt enforcement
Upload your claim and get 3 FREE quotes from our local collection partners.
Our analysis has shown that the risk of doing business in Iceland is medium-low. Based on this medium-low score, we recommend being careful providing credit and considering charging upfront payment or using credit insurance when trading if you don't know the customer in Iceland well. If possible, provide a short credit period or even better upfront payment. The medium-low risk score is based on the following factors:
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The economic risk in Iceland
Economic risk in Iceland is medium-high (4 out of 6). An economic risk of 4 out of 6 is relatively high in Europe.
GDP and economic growth are critical drivers for economic risk.
The GDP of Iceland is 25,46 bn. USD (2021), growing by 3,7% per year.
In terms of the size of its economy, Iceland ranks #104 out of 183 countries and has a medium-sized economy.
Looking at the growth rate, it is ranked #108 out of 183 countries and is therefore considered an excellent growing economy.
GDP per capita is 68384 USD, ranking Iceland number #8 out of 183 countries. This means the purchasing power of citizens in Iceland is high compared to the rest of the world.
You can see a more detailed picture of GDP and economic growth in Iceland in the table below:
Another critical driver for the economic risk score is the inflation rate and the interest rates. You can see a more detailed picture of monetary KPIs in Iceland in the table below:
The inflation in Iceland was 4,4% in 2021 which is considered a medium inflation rate.
The interest rate for businesses is 5,4%.
The business environment risk in Iceland
Our analysis shows that the business environment risk in Iceland is very low (1 out of 6), which is a relatively low risk score in Europe.
Economic freedom and rights determine the business environment risk in a country. You can see the critical facts for Iceland in the table below:
As you can see in the table, the property rights index is 87 in Iceland, which is considered quite good in Europe.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 84 in Iceland, a pretty good score for a country in Europe.
Iceland's overall economic freedom index is 77 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Iceland
The political risk in Iceland is low, with a score of 2/6. This is a pretty average political risk score in Europe.
The governance and political stability indicators are important drivers for political risk. An overview of Iceland can be seen in the graphs below:
The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.
When transacting business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Iceland, the rule of law index is at 1,75 points, with the score going from -2.5 (weak) to 2.5 (strong). Iceland has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.
Other drivers for the low political risks are the strong control of corruption, the strong political stability index, and the normal shadow economy that is 12,45% of Iceland's GDP.
The commercial risk in Iceland
In Iceland, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is relatively low compared to the average in Europe.
The commercial risk is influenced by a country's international trade relationships. You can see some of the key facts for Iceland in the table below:
Iceland has a foreign exchange reserve of 7.08 bn. USD.
Iceland has a negative trade balance of -2,13% of GDP. This means that Iceland imports more goods and services than the country exports.
The annual growth of exports of goods and services has been growing 12,34% annually - now 38,13% of GDP. Import of goods and services represents 40,26% of the GDP in Iceland.
The financing risk in Iceland
We have calculated the financing risk to be 2/4, which equals a low risk. A low financing risk score is pretty average for countries in Europe.
The country's banking system, efficiency, and stability influence the financing risk. You can find the critical facts for Iceland in the table below:
In Iceland, the credit information sharing index is 7 on a scale from 0 (low) to 8 (high). This means the accessibility and quality of credit information available in Iceland is medium-high.
This makes it easy for you to understand the credit risk of your counterpart in Iceland. Based on this, it should be possible to to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.
Your rights as a creditor are 4 out of 12 and, therefore, very weak.
The low financing risk for creditors also impacts the medium interest rate in the private sector of 5,4%.
Debt Collection in Iceland: Frequently Asked Questions
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When trying to collect debt in Iceland, the person who owes the debt is called the "debtor" and the person who is owed the debt is called the "creditor". Working with a company that specializes in collecting debt can make the process easier. The usual steps taken for collecting debt in Iceland include amicable collection where friendly reminders are sent, evaluation of options, surveillance for small claims, legal collections for big claims, and debt enforcement if there is an admission of debt. Debitura offers a risk-free service for trying to collect debts.
The debt collection process in Iceland involves three steps: pre-legal collection, legal debt collection, and debt enforcement. Pre-legal collection involves working with a company that specializes in debt collection to provide information about the debt. Amicable collection involves sending reminders to the person who owes you money through various means of communication, and evaluation involves figuring out which option to take next, such as debt surveillance, legal collections or debt enforcement. Using Debitura's service for debt collection is risk-free, and fees are only charged if the debt is collected.
If a debt is disputed in Iceland, a civil lawsuit may be required for legal collection. Debt enforcement and insolvency proceedings are also options. Local legal representation is necessary for legal actions.
Debitura offers a no-cure-no-pay pre-legal debt collection model with a success fee between 10-20%. The cost for legal actions varies depending on your case and desired actions. Debitura can provide you with 3 quotes from the best debt collection lawyers in Iceland to help you choose the best option for your specific case.
The time it takes to collect a debt in Iceland varies depending on the debtor and the case. If the case can be resolved in the pre-legal phase, collection can take 3-6 months. However, if legal action is necessary, the process typically takes 12-18 months. Nonetheless, we strive to handle each case efficiently to ensure a quick and satisfactory resolution.
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