Enforcing Claims – Debt Collection, Payment Orders, Enforcement

Enforcing Claims

Enforcing a claim typically happens in stages. First a lawyer or debt collection agency writes. Then, if necessary, it goes to court – because time and cost make a staged approach the sensible default. There is no legal requirement to send three reminders first before taking action: that is a widespread myth.

For expats: Receiving German-language court documents can be alarming if you do not read German. The most important thing to know is that ignoring them is the worst possible response. Deadlines are real and missing them has consequences.

Debt Collection Agencies

When you pass a claim to a debt collection agency, they pursue it in their own name or yours, sometimes for a commission, sometimes for a share of what is actually recovered. Debt collection costs can, within statutory limits, be added to the debtor’s bill – but not always. The primary debtor for those costs is the creditor; only if the debtor actually pays are those costs recovered.

For the creditor, debt collection is not a guarantee. The agency does not check whether the claim is valid or whether the debtor can pay. Passing on a doubtful claim to a collection agency risks incurring additional costs in a dispute.

For debtors: collection agencies send letters, nothing more. Three bald men with a dog are not about to knock on your door – that is cinema, not German enforcement practice. Collection letters are often written in alarming language. That changes nothing about the legal position. If you believe the claim is unfounded, say so in writing – and write to the creditor, not just the agency.

The Mahnbescheid: Do Not Ignore Court Post

If you receive a Mahnbescheid (court payment order), you must respond. A payment order that is not contested becomes enforceable on application and at that point objections on the merits are too late. This also applies to payment orders from other EU countries (Europäischer Zahlungsbefehl). If you receive court documents in Spanish, Italian, or any other language, do not wait for a translation. The deadline for a German Mahnbescheid is two weeks from service.

Important: the objection (Widerspruch) must be filed with the court, not with the creditor or their representatives. There are official forms. Also important: fraudulent websites exist that look like official court portals. For German payment orders use only online-mahnantrag.de.

Enforcement

With an enforceable title – a judgment, enforcement order, or notarially certified acknowledgment of debt – you can enforce against a non-paying debtor. For money claims, options include garnishing bank accounts, wages, or receivables, instructing a bailiff to seize assets, or having the debtor entered in the debtor register.

The right tool depends on what the debtor has and where it is. Finding that out is the purpose of the asset disclosure (Vermögensauskunft), also obtained through a bailiff.

Contact: