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Debt Recovery — Someone Owes You Money

Unpaid invoices, loans, contracts

Someone owes you money in Malta and is not paying. You have legal tools to recover it — from formal demand letters to court enforcement warrants. Here is t

1. Send a formal written demand — registered letter

   Before taking legal action, send a formal demand for payment by registered post (ittra rreġistrata) or email with read receipt. State: the exact amount owed, what it is for, the deadline to pay (typically 7-14 days), and that you will take legal action if unpaid. Keep a copy. This step is important — it shows the court you tried to resolve the matter first and it often produces payment.

2. Small Claims Tribunal for debts under €5,000

   The Small Claims Tribunal is the fastest and cheapest option for debts up to €5,000. File at the Malta Justice Services portal (justiceservices.gov.mt) or in person at the Civil Court. Cost: €25. No lawyer needed. Cases are resolved in 6-8 weeks. The Tribunal hears both sides and issues a binding decision. You can then enforce it.

3. Magistrates Court for debts up to €15,000

   For debts between €5,001 and €15,000, file in the Magistrates Court (Civil Jurisdiction). A lawyer or legal procurator is recommended but not mandatory. Filing fees apply. Cases take 6-12 months. The court can issue an executive warrant allowing enforcement even before the full case is heard if the debt is clear and undisputed.

4. Civil Court First Hall for larger debts

   For debts over €15,000, file in the Civil Court First Hall. A lawyer is essential. Cases can take 1-3 years. For large commercial debts, consider also whether the debtor company is at risk of insolvency — if so, act quickly before assets disappear.

5. Apply for a Precautionary Warrant to freeze assets

   If you fear the debtor will hide or sell assets before you get a judgment, apply urgently to the court for a Precautionary Warrant of Seizure or Garnishee Order. This freezes the debtor's bank accounts or seizes specific assets before the case is decided. Requires a sworn statement showing the debt and the urgency. Acts very quickly — often same day.

6. Enforce the judgment — executive warrant

   Once you have a court judgment, you can enforce it with an Executive Warrant. This allows the court bailiff to seize and sell the debtor's assets to pay your debt. You can also apply for a Garnishee Order which redirects money owed to the debtor (e.g. their salary or bank account) directly to you instead.

7. Bankruptcy as a last resort for large unpaid debts

   If a company owes you a substantial amount and has multiple creditors, you can apply to the Civil Court to have it wound up (liquidated). If the debtor is an individual with significant assets, you can apply for their insolvency. These are serious steps requiring a lawyer and are usually a last resort when other enforcement methods have failed.