Debt Collection in Luxembourg
Does your company have to deal with debt collection in Luxembourg because your customer has not paid your invoice? With a foreign customer, you are confronted with different languages, business cultures, and rules and regulations than those you are used to. This often makes debt collection in Luxembourg very difficult.
Our debt collection specialists and lawyers in Luxembourg will be happy to help you solve your debt collection case. They have the resources to get your debtor to pay. With our international expertise, we can ensure you that your outstanding invoices will be paid as soon as possible. Read here what we can do for you when you want to hire a debt collection agency or lawyer in Luxembourg.
Collecting debt in Luxembourg
Luxembourg's economy is predominantly based on international trade. The financial and insurance sector particularly play an important role here. Moreover, Luxembourg is the world's largest financial center for investment funds, with many multinational European companies based in Luxembourg.
Many innovations take place in the field of payment methods. Overall, the payment behaviour of companies in Luxembourg is relatively good. Nevertheless, there are still companies that do not pay their invoices on time. Do you have an outstanding invoice in Luxembourg? Then we will be happy to help you with your debt collection case.
Outstanding invoice with a customer in Luxembourg?
An outstanding invoice can be extremely frustrating. You will have to go through a great deal of effort to retrieve your payment. Would you like to know how you can retrieve your payment in Luxembourg yourself? Read our tips on international debt collection written by our specialists.
- Send a friendly reminder informing your customer of the unpaid invoice.
- Call your customer and ask them why the invoice has not been paid. If you are unsure as to how you should call your debtor, then read our tips on calling debtors. This way you can prepare yourself for any scenario.
- Send a clear demand letter in which you state that the customer is given a final opportunity to pay. Also, mention the consequences if your customer fails to do so.
- Does the above still not lead to the payment of your invoice? Then transfer your claim to our debt collection specialists and lawyers. You can easily transfer your case online via our website. We will immediately start working on your case as soon as you have uploaded your claim.
International lawyer in your country
For the collection of your invoices, it is best to contact a debt collection specialist or lawyer in Luxembourg. You will not have to travel to Luxembourg, you can simply contact our specialists at Bierens. They have extensive knowledge and experience with the laws and regulations in Luxembourg.
They also collect in the same language as your debtor. Whether your customer speaks German, French, or Luxembourgish, the language is no barrier for us. This way we know how to retrieve your payment as soon as possible.
Debt collection procedure in Luxembourg
The collection process in Luxembourg can be divided into two phases. In the extrajudicial phase, we collect without the intervention of the court, in the judicial phase we do involve the court to get your customer to pay. Because we are a law firm, we can assist you in both phases.
Feasibility study for judicial debt collection
If your debtor refuses to pay in the extrajudicial phase, we can go to court in consultation with you. Before doing so, we will always conduct a feasibility study in order to determine whether legal proceedings are a cost-effective solution for your organisation. We will always inform you of the costs in advance and will only initiate legal proceedings after receiving your permission.
In 95% of the cases we solve, we collect the claim during the extrajudicial phase. However, in certain cases, legal proceedings against your debtor are initiated immediately. Our debt collection lawyers will consider the country in which litigation should take place and under which law. Based on these factors, we determine the most suitable course of action and ensure the best debt collection lawyer is working on your case.
Competent judge: litigating in Luxembourg or in your country?
In the case of a judicial debt collection in Luxembourg, the first question you will have to consider, is in which country should you litigate? Should litigation take place in Luxembourg or in your own country? This depends on the court that is competent to judge your debt collection case. In your general terms and conditions, you can establish agreements on the competent court in the event of a payment conflict. This is also called choice of forum. Have no agreements been made? Then the main rule is that the court in the country of the defendant has jurisdiction. In this case the court in Luxembourg. You will then have to follow legal proceedings in Luxembourg.
Which law is applicable?
In addition, the main rule is that the law of the country of the seller or service provider applies. In this case, the law of your country is applicable. We then get this difficult situation where the court in Luxembourg must judge the case based on the law in your country. A legal system he is unfamiliar with. This is an unwanted situation, which is why our advice is to make agreements about this in your general terms and conditions. In addition, you can also agree that you can litigate in your own country in the event of a conflict.
Judicial debt collection in Luxembourg
When we take legal action against your customer, there are several local debt collection procedures that we can deploy depending on the complexity of your case. Our lawyers always consider the most suitable course of action for your debt collection case.
If the amount of a claim is less than €10.000,- you may proceed to the 'Justice de Paix' (Civil Court) in Luxembourg. For claims more than €10.000,- you will have to go to the 'Rechtbank'. Both courts offer the possibility to simplify the debt collection procedure. This debt collection procedure is only suitable for simple collections. In the case of disputed claims, a standard debt collection procedure must be followed.
Accelerated debt collection procedure in Luxembourg
To initiate the accelerated debt collection procedure in Luxembourg, you will have to download several forms online. These can be found on the websites of various courts. The forms must be filled in, signed, and returned to the court. The court then assesses whether the application can be accepted and submits a provisional payment order to the debtor. The debtor is then given a certain amount of time to respond in writing. If your debtor fails to respond, then the payment order must be completed within 6 months and you will receive an enforceable title.
If the debtor disputes the claim, this can be communicated in writing. The case is then also settled in writing by the court. Only if both parties request a hearing will a hearing be scheduled. If the disputed case cannot be dealt with in this accelerated procedure, ordinary civil proceedings will be initiated.
International debt collection procedures
In addition to the local debt collection procedures, there are also several European collection procedures that can be used when your foreign customer refuses to pay. For the European Union, it is important to stimulate trade between European countries meaning that complicated procedures abroad are unwanted. That is why there are two procedures that can be used for foreign claims: the European Payment Order and the Small Claims Procedure.
Both procedures are relatively cost-effective. A standard form must be filled in, which is then sent to the competent court. In most cases, this is the court in Luxembourg, unless stipulated otherwise in your contract or the general terms and conditions.
The Small Claims procedure is only suitable for small claims up to €5.000. The European Payment Order only applies to undisputed claims. Although it is a simple procedure, it is rarely used as once a debtor indicates that a claim is disputed, the procedure will be terminated. Other proceedings will follow instead, which will be more costly and extend your debt collection case.
Proceedings in your own country
Have you agreed in the general terms and conditions that the court in your country has jurisdiction? Then legal proceedings can also be initiated in your country. Depending on your specific case, our lawyers will investigate what is most beneficial for your organisation. If we start legal proceedings in your country against your debtor in Luxembourg, we can request a writ of summons and proceed with ordinary civil proceedings. Both parties will present their case, after which the judge will make a ruling.
If a verdict has been obtained in your country, it has yet to be executed in Luxembourg. Within the EU, it is established that all verdicts obtained in the EU member states are also recognised in other EU countries. For the execution of a judgment from your country in Luxembourg, the court must issue a certificate. This will then be sent to the court in Luxembourg together with the judgment from the judge in your country.
Advantages of debt collection in Luxembourg
- Luxembourg debt collection lawyers in your country
- Highest success rates of 95%
- Collection throughout Luxembourg
- Always a single point of contact
- 24/7 online access to our portal
- No Cure No Pay debt collection
More than a debt collection agency
If you are looking for a debt collection agency, you are in a much stronger position with a debt collection lawyer. Our debt collection lawyers in Luxembourg have more resources than a collection agency. We work much faster, efficiently, and are more successful. This is beneficial for you, as you will retrieve your payment in a timely manner.
The best debt collection costs in Luxembourg
If the collection is successful, we try to recover the collection costs as much as possible from the debtor. In that case, your customer in Luxembourg will pay the outstanding invoice and the collection costs. This way you will have to pay as little collection costs as possible to our organisation.
Do you have an outstanding invoice with your customer in Luxembourg? Or do you have another conflict with your customer? Our debt collection specialists and lawyers will be happy to help you solve your payment conflict. Please feel free to contact us for more information.