A client in Germany doesn't balance his account. What steps do I have to take?

send him a German formal-reminder that his payment has become overdue and that payment is expected until a particular point in time. Have the case assessed by us in case the debtor has not cleared his account until the date set by you and, if advisable (debtor isn't insolvent), have us recover your debt. See Step-by-Step.

Why does a deadline matter that much?

Each country's law knows its own rules and such are also in place for reminders and payment orders. To a German, an unnecessarily charming reminder may seem unserious. A German reminder will most likely carry a distinctly serious, solid and decisive tone. An essential part of that is the deadline. It should be set in a single line, preferrably with the date written in bold letters. The language should be cristal clear. Do not write lines such as "pay within two weeks". Set concrete dates to make it a proper deadline. Please see our model formal-reminder to see how a deadline is put in place properly.

What are the costs of recovering a debt in Germany?

See our section on Costs German Payment Order and calculate yourself! Note: Excluding first-assessment costs.

Are the costs for the first-assessment included in the legal costs?

No. The costs for our first-assessment are not included in the legal costs. Please contact us for more information about the first-assessment of your case.

Why is a first-assessment of the case so important?

At first to ensure that his address has not changed in the meantime, as that would unnecessarily postpone the collection of your debt. Secondly to gain insights about the debtor's current financial situation. But also for an analysis of legal issues. A first-assessment has prevented numerous creditors from running into unnecessary legal expenses. See First Assessment.

Would it make sense to threaten the debtor with the possibility of a future insolvency?

Absolutely not. See Insolvency

Should enforcement of the title become inevitable, how is it handled?

A complex issue. Partly because bailiffs work in an exclusive field and don't have competition. See Enforcement. One good instrument is the seizure of bankaccounts and incomes, and the Eidesstattliche Versicherung, an affirmation.

OK, it seems the German judiciary is based on a different structure, do you have an overview?

An official English overview of the German judiciary can be found here.

What is an eidesstattliche Versicherung?

It's an important tool in the enforcement of a title, especially against natural persons. It is an affirmation, an affidavit, a witness statement in broad terms. See Eidesstattliche Versicherung for more information.

Is legal representation mandatory ?

Claims up to 5000 Euros fall under the jurisdiction of the local district court, the Amtsgericht, where legal representation is not compulsory. Cases pending with the higher instance Landgericht, (claims above 5000 Euros) require legal representation.

What can MMRecht, that is Law Firm Murk Muller, do for you?

MMrecht collects debts in Germany with a system that has developed and come to its efficiency over a time of more than 15 years. The legal recovery via the Mahnverfahren is primarily done for bailiffs, other lawyers or debt collection agencies.



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