In brief
A commercial dispute in Romania is heard by the court of first instance (judecătorie) when the money claim is up to and including 200,000 lei, and by the tribunal (tribunal) above that amount, in the Romanian language. To collect a certain contractual debt there is a payment order procedure (ordonanța de plată), and for claims of up to 10,000 lei a small claims procedure. The general limitation period is 3 years. Romania and Israel are parties to the New York Convention, so an arbitral award is usually enforced more easily than an Israeli judgment, whose recognition in Romania is subject, among other things, to a reciprocity requirement.
Key takeaways
- 1The court of first instance (judecătorie) hears money claims of up to and including 200,000 lei, regardless of whether the parties are professionals (article 94 of the Code of Civil Procedure).
- 2A payment order (ordonanța de plată) is available for a certain, liquid and due money debt arising from a written contract, after a 15-day notice.
- 3The small claims procedure applies to claims not exceeding 10,000 lei, excluding interest and costs (article 1025).
- 4The general limitation period in Romania: 3 years (article 2517 of the Civil Code), unless the law sets a special period.
- 5Romania acceded to the New York Convention in 1961, with reciprocity and commercial-relationships-only reservations; Israel has been a party since 1959.
- 6In Israel, an application to enforce a foreign judgment is usually filed within 5 years of the date of the judgment, subject to reciprocity (Israel's Foreign Judgments Enforcement Law, 1958).
An Israeli company whose Romanian supplier, customer or partner fails to meet its obligations needs to know three things quickly: where it can sue, under which procedure, and how the judgment will turn into money. This guide explains the Romanian court system for commercial disputes, the debt collection tools, arbitration and enforcement between Israel and Romania, under the law in force in November 2026.
There is a separate guide for disputes with a developer in a real estate transaction: a dispute with a developer abroad: arbitration or court.
Which court in Romania hears a commercial dispute?
As of November 2026, under the Romanian Code of Civil Procedure, a commercial claim of up to 200,000 lei is heard by the court of first instance, and a higher claim by the tribunal. Under article 94 of the Code of Civil Procedure, the court of first instance (judecătorie) hears at first instance claims assessable in money of up to and including 200,000 lei, “regardless of the status of the parties, professionals or non-professionals”. Higher claims are heard by the tribunal (tribunal).
| Court | Main role in a commercial dispute |
|---|---|
| Court of first instance (judecătorie) | First instance in money claims of up to and including 200,000 lei; payment orders and small claims according to the amount of the debt |
| Tribunal (tribunal) | First instance in claims above 200,000 lei; recognition of foreign judgments and arbitral awards; insolvency proceedings |
| Court of appeal (curte de apel) | Appeals; action to set aside an arbitral award made in Romania |
| High Court (Înalta Curte de Casație și Justiție) | The supreme court, in cases permitted by law |
Proceedings are conducted in Romanian. Documents in a foreign language, including a contract in English and correspondence in Hebrew, are filed in certified translation, and a company representative who does not speak Romanian is assisted by an interpreter. The duration of proceedings varies greatly between courts and types of case, so it is worth asking the Romanian lawyer for an estimate for the specific court.
How do you collect a debt from a Romanian customer without an ordinary lawsuit?
For a clear money debt arising from a written contract, the usual procedure is the payment order (ordonanța de plată). It is faster and simpler than an ordinary claim, but only when the debt is not seriously disputed.
| Tool | When suitable | Main conditions |
|---|---|---|
| Notice before a payment order (somație) | A mandatory step before a payment order | Sent through a bailiff or by registered mail with acknowledgement of receipt, giving the debtor 15 days to pay (article 1014) |
| Payment order (ordonanța de plată) | A certain, liquid and due money debt | Arising from a contract proved in writing or from a document the parties acknowledged by signature; does not apply to a debt registered in insolvency proceedings (article 1013) |
| Small claim (cerere cu valoare redusă) | A small debt | Up to 10,000 lei excluding interest and costs, on the date the claim is filed (article 1025); an optional procedure, at the claimant's choice |
| Ordinary claim | A disputed debt, damages, complex breach of contract | Under the ordinary jurisdiction rules |
| Insolvency proceedings (Law 85/2014) | A debtor who does not pay its debts | Real leverage, but in collective proceedings the creditor competes with other creditors |
Both European procedures, the European payment order (Regulation 1896/2006) and the European small claims procedure, apply only to a cross-border dispute within the European Union, meaning where at least one of the parties is in another member state. An Israeli company suing a Romanian debtor in Romania usually does not meet the definition, unless the claimant is its subsidiary in another EU member state.
How long before a contractual claim becomes time-barred in Romania?
As of November 2026, the general period is 3 years, under article 2517 of the Romanian Civil Code, unless the law sets another period. Rights in rem are subject to a 10-year period (article 2518), and there are special periods, for example two years for claims under insurance (article 2519). So first check whether a special period applies to the transaction.
A notice before a payment order that was duly sent interrupts the limitation period (article 1014 of the Code of Civil Procedure, referring to article 2540 of the Civil Code). An Israeli company that waits “to see what happens” may find that time has run out, especially when old invoices accumulate.
Do you have to go through mediation before suing in Romania?
No. The Mediation Law (192/2006) previously required attendance at an information session on mediation before filing certain claims, but the Constitutional Court of Romania held in Decision 266/2014 that this requirement is unconstitutional, and the decision was published on 25 June 2014. Mediation remains a voluntary option, and sometimes a worthwhile one, especially when you want to continue the business relationship. The contract itself can provide for a negotiation or mediation stage before proceedings.
Arbitration or court: which suits an Israeli company?
Arbitration is suitable mainly when the amounts are significant, when you want proceedings in English and an arbitrator with international experience, and when enforcement may be needed in several countries. A Romanian court is suitable for a simple debt, a payment order or a dispute in which the other side and its assets are in Romania.
| Court in Romania | Arbitration | |
|---|---|---|
| When it applies | Always, unless otherwise agreed | Only by written agreement; an agreement not in writing is void (article 548) |
| Language | Romanian | As agreed by the parties |
| Main local institution | - | The Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania (CICA), rules from 1 January 2018 |
| Review | Appeal under the procedural rules | Action to set aside in the court of appeal within one month of service of the award, on limited grounds |
| Interim relief | The court | A competent court can also grant interim relief before or during the arbitration |
| Enforcement in Israel | Foreign Judgments Enforcement Law, including reciprocity | New York Convention |
According to the CMS guide to arbitration in Romania, property disputes between parties with capacity may be referred to arbitration, but not insolvency disputes, some shareholder disputes and individual employment disputes. So an arbitration clause in a shareholders' agreement will not necessarily apply to every dispute within the company.
What is the status of the New York Convention between Israel and Romania?
Both countries are parties to the 1958 New York Convention on the recognition and enforcement of foreign arbitral awards. Israel ratified it in 1959, and Romania acceded on 13 September 1961, with the Convention entering into force for it on 12 December 1961. Romania declared that it will apply the Convention only to awards made in a contracting state, and only to disputes arising from relationships considered commercial under Romanian law.
For a dispute between two companies over a supply, services or partnership contract, the commercial condition is usually met. In Romania, an application to recognise a foreign arbitral award is filed with the tribunal, and the court does not re-examine the merits of the dispute, but will check that the subject matter is arbitrable under Romanian law and that the award does not conflict with public policy.
How do you enforce an Israeli judgment in Romania?
An Israeli judgment is not enforced in Romania automatically. Israel is not a member of the European Union, so the recognition rules of the Romanian Code of Civil Procedure for judgments from third countries apply. Under article 1095, recognition is subject to cumulative conditions, including that the judgment is final under the law of the state that gave it, that the court that gave it had jurisdiction, and that there is reciprocity between Romania and that state. Article 1096 lists grounds for refusal, including exclusive jurisdiction of the Romanian courts, for example in disputes over real estate in Romania.
To enforce in practice, for example to attach the debtor's bank account, a procedure to declare the judgment enforceable is also required, followed by an application to a bailiff (executor judecătoresc). This process adds time and cost, so when the other side's assets are in Romania, a direct claim in Romania or arbitration may be more efficient.
How do you enforce a Romanian judgment in Israel?
A Romanian judgment is enforced in Israel only after an Israeli court declares it enforceable, and the application must usually be filed within 5 years of the judgment (as of November 2026). Under Israel's Foreign Judgments Enforcement Law, 1958, an Israeli court may declare a foreign judgment enforceable if it was given by a court competent under the law of its state, is no longer appealable, its content does not conflict with public policy and it is enforceable in the state where it was given (section 3). A judgment will not be declared enforceable if the state that gave it does not enforce Israeli judgments (section 4, reciprocity), and an application is usually filed within 5 years of the date of the judgment (section 5). Section 6 lists defences, including fraud and lack of a reasonable opportunity to defend.
What should a contract with a Romanian party say to avoid problems?
- Jurisdiction clause: a Romanian court chosen in the contract must respect the choice under article 25 of the Brussels I recast Regulation (1215/2012), which applies regardless of where the parties are domiciled. If you choose an Israeli court, think in advance about how the judgment will be enforced in Romania.
- Governing law: a Romanian court applies the Rome I Regulation (593/2008), which respects the parties' choice. Foreign law in a Romanian court means expert opinion and translations.
- Arbitration clause: institution, seat, language and number of arbitrators, in writing and clearly.
- Contract language: a bilingual contract with a provision on which version prevails.
- Security: a bank guarantee, a parent company guarantee or a pledge, which make collection easier regardless of the forum.
- Limitations: disputes over rights in real estate in Romania belong to the exclusive jurisdiction of the Romanian courts, and a contract clause does not change that.
The dispute has started: what do you do in the first weeks?
- Gather the documents: the contract and all annexes, orders, invoices, delivery confirmations, correspondence and transfer confirmations.
- Check the other side: an up-to-date extract from the Trade Register (ONRC), whether the company is active, whether insolvency proceedings have been opened against it and whether it has assets.
- Read the dispute clauses: jurisdiction, governing law, arbitration, notices and a negotiation or mediation stage.
- Calculate the limitation period: 3 years as a rule, and check whether a special period applies.
- Send a proper notice: when planning a payment order, the 15-day notice is a condition of the procedure, and it also interrupts the limitation period.
- Consider interim relief: where there is a concern that the debtor will move assets, check with a Romanian lawyer the possibility of a provisional attachment.
- Choose a route: payment order, small claim, ordinary claim, arbitration or negotiation, according to the amount, the degree of dispute and the location of the assets.
Where are the other side's money and assets? If they are in Romania, proceedings in Romania or arbitration with enforcement under the New York Convention usually save an entire stage of recognition of a foreign judgment. For the broader picture see when a deal abroad goes wrong.
This guide is general information as of November 2026 and is not legal advice; representation in the Romanian courts is provided by a lawyer licensed in Romania, and every case is examined on its merits.
More on doing business in Romania: Setting up a company in Romania · Corporate tax and transferring profits to Israel from Romania · An Israeli company operating in Romania · Comparison of 8 countries · All guides for companies and businesses
Frequently asked questions
How do you sue a Romanian company that has not paid?
As a rule in the Romanian courts according to the amount of the claim: the court of first instance up to and including 200,000 lei, and the tribunal above that. If the contract has a jurisdiction or arbitration clause, it usually determines the forum. When the debtor's assets are in Romania, suing there saves a procedure for recognising a foreign judgment.
How do you collect a debt from a company in Romania without a full trial?
The usual route is a payment order (ordonanța de plată), an expedited procedure to collect a certain, liquid and due money debt arising from a written contract. Before it, the debtor is sent a notice through a bailiff or by registered mail, with 15 days to pay. For a debt of up to 10,000 lei there is also the small claims procedure.
How long do you have to sue for a debt in Romania?
As of November 2026, the general period is 3 years under article 2517 of the Civil Code, unless the law sets a special period. A notice duly sent before a payment order interrupts the limitation period. It is worth checking the deadline early and not waiting.
Is an Israeli judgment enforceable in Romania?
Not automatically. A recognition and enforcement procedure under the Romanian Code of Civil Procedure is required, and the conditions include finality, jurisdiction of the Israeli court and reciprocity between the countries. In disputes over real estate in Romania, the Romanian courts have exclusive jurisdiction.
Is an arbitral award enforceable in Romania?
Usually yes, under the New York Convention, to which Romania has been a party since 1961. Romania applies it only to awards from contracting states and to commercial relationships, and Israel is a party to the Convention. The Romanian court does not re-examine the merits of the dispute, but checks grounds such as public policy.
Do you have to go through mediation before suing in Romania?
No. The requirement of a mediation information session was struck down by Constitutional Court Decision 266/2014. Mediation remains a voluntary option, and a contract can provide for a negotiation or mediation stage before proceedings.
In what language is a trial in Romania conducted?
In Romanian. Documents in a foreign language are filed in certified translation, and anyone who does not speak Romanian is assisted by an interpreter. In arbitration the parties can agree on another language, for example English.
How long do you have to enforce a Romanian judgment in Israel?
An application to declare the judgment enforceable must usually be filed within 5 years of the date of the judgment, under section 5 of Israel's Foreign Judgments Enforcement Law, 1958. The court checks, among other things, that the judgment is final, that it was given by a competent court and that Romania enforces Israeli judgments (reciprocity).
Read next · 10 min readForming a Company in Romania as an Israeli: Setting Up an Operating SRL at the ONRC, Capital, CAEN Codes, Micro Regime, VAT and BankHow an Israeli forms an operating company in Romania in 2026: SRL steps at the ONRC, 500 lei capital, registered office, UBO, CAEN codes, 1% micro regime, VAT.Read the guideSources
- UNCITRAL - Status: Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958)
- Foreign Judgments Enforcement Law, 1958 (Wikisource, Hebrew)
- EUR-Lex - Regulation (EU) No 1215/2012 (Brussels I bis)
- EUR-Lex - Regulation (EC) No 593/2008 (Rome I)
- EUR-Lex - Regulation (EC) No 1896/2006 (European order for payment)
- Codul de procedură civilă, art. 94 (legeaz.net)
- Codul de procedură civilă, art. 1013-1014 ordonanța de plată (legeaz.net)
- Codul de procedură civilă, art. 1025 cererea cu valoare redusă (legeaz.net)
- Codul civil, art. 2517 termenul general de prescripție (codulcivil.ro)
- Decizia CCR nr. 266/2014 privind Legea 192/2006 (legeaz.net)
- CMS Expert Guide to International Arbitration - Romania (updated 26.3.2025)
- Mondaq - New arbitration rules enter into force in Romania (CICA 2018)
