debt collection in germany
TRANSCRIPT
DEBT COLLECTION
IN GERMANY
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A presentation brought to you
by BridgeWest.eu
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The Debt Collection
Procedure in Germany >>
• The process of debt collection in Germany is
divided into two stages:
• The first procedure is more convenient as there are
no costs involved, while in the second stage the trials
costs must be paid by the creditor.
the amicable procedure;
the legal procedure.
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>> The Debt Collection
Procedure in Germany
• The process of debt recovery in Germany begins
with a written request for payment sent by the
creditor to the debtor.
• If the invoices are not paid after this step, the
creditor is trying to contact the debtor through the
phone.
• During the phone call, the procedure of payment
can be decided: through installments or by
delaying the term of payment.
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Debt Collection Agency in
Germany
• If none of the debt collection procedures
presented so far are successful, it’s necessary to
contact a debt collection agency.
• The debt recovery agency in Germany will start
the process by contacting the debtor in writing and
trying to reach a settlement with him.
• In this stage, many debtors choose to pay because
of the implication of a third party.
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Required Documents for the Debt
Collection Procedure in Germany
• The legal procedure for debt collection in
Germany requires some specific documents:
the contract signed between the creditor and the debtor;
invoices and a statement of account indicating payments;
credit notes which have been booked regarding the pending
invoices.
• In case of an ordinary lawsuit, the delivery notes, the
contract, orders and order confirmations are also
mandatory.
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The Legal Procedure of Debt
Collection in Germany
• In the process of debt recovery in Germany it is
not mandatory to be represented by an attorney in
front of the local court if the claim is below 5,000
EUR.
• In front of any other court type in Germany, the
presence of a legal person is mandatory.
• If you are dealing with debt recovery issues, our
German lawyers can represent you through all the
stages of a litigation.
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Lawsuits for Debt
Collection in Germany
• In case the debtor is traceable and the debt
consists in money, the legal dunning procedure
in Germany is applicable.
• For non-German clients the responsible court is
Berlin-Wedding.
• The process takes around 8-12 weeks.
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Stages of a Lawsuit for Debt
Collection in Germany >>
• The lawsuit for a debt collection case in Germany
usually starts with a written pre-procedure.
• The plaintiff and the defendant exchange reviews
and proofs by letter until all the relevant details are
gathered to start a trial.
• A hearing is scheduled and both parties must be
present. The involved parties (creditors and
debtors) are informed about the process in writing.
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>> Stages of a Lawsuit for
Debt Collection in Germany
• Appeals are possible if submitted at the second
instance.
• If the decision is also contested here, amendments
of facts are not possible, the third instance court is
only verifying if the statutes were applied correctly.
• The entire legal process takes around one
year and even more if the case is more complex and
appeals are raised.
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Legal Assistance in
Germany
• When dealing with debt recovery in Germany, it
is advisable to use the help of a law firm, which
can provide you legal advice on the matter.
• For assistance with the issues related to debt
collection procedure in the Germany, you
may contact our German lawyers.
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Thank you for your
attention!
Please contact us for more information at:
(+44)203-287 0408
http://www.lawyersgermany.com/