On April 8, 2025, the lower Romanian chamber of the Parliament approved the legislative proposal no. 606 (Proposal) that aims to raise the threshold pertaining to the initiation of a specific type of lawsuit concerning debt recovery.
For the retrieval of debts amounting to EUR 2,000, Article 1.026 et seq. of the Romanian Civil Procedure Code enshrines a simplified procedure entailing a single written phase, relying exclusively on written evidence (Simplified Procedure). While the court may hold formal oral hearings or administer other means of evidence (e.g., witnesses, expert reports, etc.), in practice this is rarely encountered.
Other significant practical benefits of the Simplified Procedure consist of the cost-efficient approach to the dispute resolution process as well as the overall swift conclusion of this specific type of lawsuit.
Naturally, the procedure is far more desirable than the common civil claim, however, its main drawback is that any sum exceeding the regulated amount cannot be obtained via this specific type of lawsuit.
Even if the debtor accumulates five such debts, each more than EUR 2,000 and arising from different contracts, the Simplified Procedure cannot be initiated for the whole sum, and the common procedure must be carried out for its recovery, which usually requires a lot more time, effort, and judiciary taxes.
During the COVID-19 pandemic, Law no. 114/2021 on certain measures in the field of justice in the context of COVID-19, extended the scope of the procedure enshrined under Article 1.026 et seq. of the Civil Procedure Code to claims with an amount in dispute up to EUR 10,000 (excluding interest, court costs, and other ancillary income on the date of referral to the court).
The Proposal seeks to amend Article 1026 para. (1) of the Romanian Civil Procedure Code to permanently allow creditors to initiate the Simplified Procedure to recover debts amounting to EUR 10,000, from the current amount of only EUR 2,000.
This highly efficient mechanism for the recovery of small debts will be expected to benefit actors of the Romanian economic market, natural persons and businesses alike, whilst also ensuring a more coherent flow of the judiciary process as well as being a welcome contribution to the overall stability of the local commercial landscape.
By Iuliana Iacob, Partner, and Andrei-Miron Cristescu, Senior Associate, Musat & Asociatii
This article was originally published in Issue 12.3 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
