Debt collection in Germany

Does your company have to deal with a debt collection case in Germany because a German customer does not pay your invoice? Our German debt collection specialists and attorneys will be happy to help you. We ensure that your outstanding invoice is paid quickly.
Read here what we can do for you if you want to engage a debt collection agency in Germany.
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International debt collection in Germany

When you do business with a German trading partner, you are confronted with business practices, customs, as well as rules and regulations that are very different from the ones you are used to. That makes debt recovery in Germany often complicated and time-consuming for you. Save your time and money by calling in one of our German specialists. They have the means to make your debtor pay.

What are the Benefits of collecting debts in Germany with Bierens?

  • Effortlessly start your case within 2 minutes
  • German-speaking debt collection attorneys
  • Debt collection in Berlin, Hamburg or Munich? 95% success rate throughout Germany
  • Contingency-based debt collection 
  • Always only one point of contact
  • 24/7 access to our online platform
Submit your case before 16.00pm and we will act today!

Debt collection in Germany

The Germans are among the best payers in Europe. Nevertheless, more than 16% of German debtors do not pay on time. Therefore, it is important to have a good credit management system for German customers, especially if you are not located in Germany.
After the first demand letter, it is usually already evident whether legal proceedings will be required. In Germany, amicable settlements are harder to reach to settle a conflict, and your German business partner will not hesitate to hire a attorney. For a successful settlement of your case, it is therefore better not to go through a collection agency, and to seek the aid of a German debt collection attorney instead.

German speaking attorneys: Meet our debt collection experts

The best way to collect your invoice in Germany is by seeking the help of one of our German Rechtsanwalt (attorney), or our collection specialists. By doing that, you will not have to worry about anything, or even travel to Germany: our debt collection specialists will take care of everything.

They have extensive knowledge and experience with laws and regulations in Germany and speak German fluently. Therefore, they will be able to make your German debtor pay quickly.

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  • Fast solutions for your cases
  • Real measures to recover your payments
  • The best results for the lowest costs

Debt collection procedure in Germany

There are two phases that may be applicable for your debt collection process in Germany. In the extrajudicial phase, the debt is collected without the intervention of a judge. In the judicial phase, a judge intervenes to make your German customer pay. Since we are a law firm, we can assist you during both processes.

Extrajudicial phase in Germany

Here at Bierens, the debt collection procedure always starts with the prelegal phase (extrajudicial phase). During this phase, we try to avoid the intervention of a judge. To do so, we will personally contact your German debtor to ensure that your invoice is paid. During the extrajudicial phase in Germany, several options are possible:
Step 1

Written demand letters and phone calls

We send the debtor a written demand letter and contact them by telephone, requesting that they pay your claim within a few days, together with interest and costs.
 
Submit your case before 16.00pm and we will act today!
Step 2

Announcing legal proceedings

The most powerful way to put pressure on your German customer is by announcing that you are going to start legal proceedings. Most companies want to avoid legal proceedings, so usually, this announcement convinces them to pay immediately.
That is why it is advisable to promptly engage the service of a debt recovery lawyer, who can announce such proceedings on your behalf. This way, you prevent an unnecessarily protracted debt recovery process.
What if the debtor refuses to pay during the amicable phase?
If your debtor refuses to pay during the pre-legal phase, we can, in consultation with you, start legal proceedings. For this, we do a credit check and analyze the financial situation of your debtor. This allows us to better assess how your debtor is doing financially and whether legal proceedings make sense. When the claim is disputed, we also must start legal proceedings in most cases.
Step 3

Judicial debt collection

Do you want to start a judicial debt collection procedure against your German debtor? Then the first thing to know is: in which country should you litigate? In your own country or Germany? The answer will depend on the competent judge. In your general terms and conditions, you can make agreements about the competent court in the event of a (payment) conflict. The clause in which this is stated is called the choice of forum.
Did you not make any agreement or are they not applicable? Then the main rule is that the court in the country of the defendant has jurisdiction. Which is, in this case, the German court. You must then go to Germany to follow legal proceedings there. In addition, the main rule is that the law of the country of the seller or service provider applies. So, in this case, Dutch law is applicable. This means we will get a situation where the German court has to judge the case according to Dutch law. A legal system he is not familiar with.

Contingency-based debt collection agency in the United States

During the extrajudicial phase, we work based on a contingency fee. That means our fee is directly proportional to the amount we recover. We also aim to recover the interest and collection costs from your debtor as much as possible in order to maximize your profits.

In the highly unlikely event that we do not collect anything, you will not have to pay us any fees. You can find a full overview of our fees on our fees page.

Debt collection laws in Germany

When taking legal action against a German customer, there are several German collection laws that we can rely on. The best collection procedure to use will differ depending on the situation. Of course, our lawyers will always look for the best option for you and your collection case.

The German legal system protects debtors. Therefore, it is harder to make a German debtor pay. However, our attorneys know perfectly which collection methods can and needs to be used to collect a debt in Germany.

The Mahnverfahren

The “Mahnverfahren” is an accelerated procedure for undisputed claims. It is characterized by its speed, simplicity and low cost. Within a relatively short period of time, you can obtain an enforcement order (“Vollstreckungsbescheid”); which orders the debtor to pay both your claim and the costs of the proceedings. Your debtor only has a few weeks to raise a legal objection.

If that does not happen, then the order for payment becomes legally binding and we can commence enforcement proceedings, such as a seizure of the debtor’s bank account or to send a bailiff to recover the debt.

The Klageverfahren

Is your claim disputed? In that case, it is better to start with an ordinary civil procedure. Both parties must substantiate their statement with supporting documents. After one or more court hearings, the judge will make a judgment. With this judgment we will be able, for example, to have the debtor's bank account seized. Before this judgment, a settlement is still possible.

 

International debt collection has never been easier with Bierens Collection Attorneys. We overcome any language, cultural and legislative barriers because we approach your debtor in their native language with our in-house specialists.

The best part is that we solve 95% of our cases without court intervention on a contingency fee basis. If your debtor fails to pay during this phase, then our efforts don’t stop just there. Our attorneys have the experience of local and international debt collection laws, which allows us to litigate on your behalf if necessary.

With Bierens by your side, no debtor can hide from us. You will not have to write off your debts or waste your time and money on a never-ending case. Find out what we can do for you below or contact us today for immediate action.

International collection laws

In addition to German collection laws, there are also a few European measures that can be used if your German customer refuses to pay
It is important for the European Union that trade between European countries is stimulated. Therefore, complicated procedures are unwanted. That is why, in addition to the normal procedures, two alternative procedures can be used for foreign claims between two EU countries:
 
European 1

Litigation in your own country

Have you agreed in the general terms and conditions that the court in your country is competent? Then legal proceedings can be started in your country. Depending on your specific situation, our attorneys will look at what is most beneficial for your company.

If we are going to litigate in your country against your German debtor, we can start ordinary civil proceedings. Both parties will be heard, after which the court will make a judgment.

Enforcement of judgement in Germany

When a judgment has been obtained, it must still be executed in Germany. Within the EU, it has been laid down that all judgments passed in a member state are also recognized in other EU countries. A specific form must be requested for the enforcement of a foreign EU judgment in Germany. This form has to be sent to the bailiff in Germany, together with the foreign EU court's judgment. The bailiff then ensures that the judgment is executed in Germany.

Summary-proceedings

Limitation period in Germany

Once the limitation period has been exceeded, an outstanding invoice expires. It is no longer possible to enforce its payment through the court. It is therefore important to keep a close eye on this prescription period. For business claims in Germany, the general limitation period is 3 years. This period starts at the end of the year in which the claim arose.
Read more about limtation period in Germany

Start your debt collection in Germany today!

Start your debt collection case in Germany today! While our German Desk get started on your case, you can resume your regular business operations. Upload your case for immediate action or contact our experts today.

If you prefer to speak directly with a debt collection specialist, feel free to contact us by phone at +1 347 862 9438.

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  • Fast solutions for your cases
  • Real measures to recover your payments
  • The best results for the lowest costs

Find out how we have helped other clients with international collections including debt collection in Germany

From simple debt collection cases to complex legal matters, from small businesses to multinationals across different industries, our specialists have assisted over 24.000 companies worldwide, including Germany. Find out how our international specialists and lawyers have helped other companies in a similar situation and find the solution for debt collection in Germany.
A little compromise can go a long way
A not so absent managing director
€30.000,- is no chicken feed!

Frequently asked questions about debt recovery in Germany

How does debt collection work in Germany?

Debt collection in Germany always starts in the extrajudicial phase where we send your debtor customized demand letters and contact them by phone. If your debtor disputes the claim or fails to respond, then we can proceed by taking legal action in consultation with you.

How will you recover my debt in Germany?

We will always contact your debtor by sending an initial demand letter, which we also follow up with a phone call. That way we avoid any form of miscommunication. Our approach is always firm and respectful, and you will always be informed of the status of your case.

What are the costs for debt collection in Germany?

We handle all out-of-court cases on a contingency fee basis, also for debt collection in Germany. We aim to recover the principal amount including interest and costs from your debtor. If we do not collect, then you pay no fee. If you decide to take legal action against your debtor, then we move to an hourly or fixed fee. We do not have any hidden costs and will always consult you before proceeding with any kind of legal action.

How long does an average debt collection procedure in Germany?

This depends on each situation and debtor. We always start in the amicable debt collection phase. This process takes a relatively short time because we provide your debtor with limited time to complete the payment. When starting your case, your case worker will provide an estimate of the duration of your case. Should your debtor fail to respond, then our specialists and attorneys can provide you with an expected outcome or course of action within 4 weeks. If legal proceedings are necessary, the debt collection process takes longer. The duration depends on the legal proceedings and on whether the debtor raises a defence.

What chances do I have for successful debt recovery in Germany?

The chance for a successful recovery depends on the nature of your debt collection case. We solve 95% of all cases on a contingency basis. Our specialists and attorneys always do their utmost to ensure to collect your claim as fast and efficiently as possible. We always make sure to give you honest and practical advice that will deliver you the best results.

When is a debt collection case taken to court?

Our preference is to collect your claim without court intervention. Therefore, we always start a collection in the amicable phase. If this has no effect, then we will discuss your judicial options with you. We will never intiate court proceedings without your explicit consent.

How much does it cost to go to court?

The court fees depend on the value of the claim and the country in which litigation takes place. In some cases, the amount is fixed, but it may also depend on litigation procedure.

How long do legal proceedings take in Germany?

The duration of legal proceedings in Germany depends on the complexity of your case and ON whether your debtor raises a defence.

How long before a debt is written off in Germany?

Payment claims in Germany have a limitation period that differs compared to other countries. There are, however, several ways to interrupt this limitation period. For more information, it is best to contact our specialists.