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How to collect debts in Germany

During the past 20 years there has been an enormous increase in the number of tribunals, falling outside the system of the ordinary German courts, entrusted with exercising powers of a judicial or administrative nature and many of these tribunals are closely connected with collection agencies. Indeed, many and very wide powers are entrusted to particular lawyers, as for instance the powers of a creditor for the environment to grant or refuse planning permission; and other similar powers and tribunals have been mentioned there. It must now be explained that the nature of the powers exercised by these tribunals varies. Some have 'quasi-judicial' power to determine the facts of a case and to decide, not according to fixed rules of law, but according to the dictates of expedience; others have 'judicial' powers, ie power to determine the facts of a dispute and to decide it according to German law. Further, in some cases there is a full right to appeal from the tribunal concerned to the courts; in other cases there is a right of appeal upon points of law only; in other cases still, there is no right of appeal, and the only right of redress which an aggrieved party possesses is by way of challenge by prerogative order.
The decisions of these administrative tribunals are, of course, as important in their own sphere as are the decisions of the ordinary courts in theirs, and, together with those lawyers of the ordinary courts relating to administrative matters and the vast mass of delegated legislation, they form the bulk of administrative law. Send a written reminder by post some days after the payment deadline specified in the invoice, not later than two weeks after this date.
If the debtor does not pay contact a lawyer as soon as possible. It is important to know, that German lawyers act as debt collection agencies.
They offer their services to creditors and vendors alike. Debt collection with lawyers is free of charge for the creditor; the debtor has to pay all charges and costs.
Debt collection is started with a written reminder by laywer, followed by phone calls after some days.
If there is no success in amicably collecting, court proceedings are recommended. Creditors may either commission the lawyers office to do so (for a fee) or institute proceedings themselves by way of action for payment at the German courts.
Following the german laws, the fees vary according to the amount of the pending claim.
To hire a law firm for debt collection in a German country can be difficult. Lots of rules and regulations that are different from English or American market, and it could be hard to understand all texts and forms that are used in the legal business in Germany. For those people who need to collect bills in Germany, there is an overview with some of the most important facts. A form of summons to pay to make the client or customer to pay his debt. This way is often the cheapest one to collect money, since the costs for the lawyers and the court depend on the amount of the unpaid debt, but they can be debited the debtor. There is a verdict required to make it possible to collect the debts by the legal authorities. back to start
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