Practical tip: Procedure in the case of debt collection by the attorney-at-law
Since, upon a formal reminder being sent by the attorney-at-law, usually an action is directly pending, instructing an attorney-at-law immediately is, in most cases, considerably more effective than first commissioning a debt collection agency.
The attorney-at-law has the necessary resources and access to data to rapidly and efficiently check the current place of residence or registered office, the current local citizen registration data, any data about current insolvency matters, etc. Once the main data on your debtor has been gathered, the lawyer’s reminder can be sent.
Please also note that some debtors operate a “cat and mouse” game with the creditors by constantly changing their place of residence and other tactics, and often only the well-advised creditor has a chance of getting paid. Also in such cases, your attorney-at-law can consider various special steps, which may even include filing a “criminal charge”.
Cross border debt collection within the European Union has meanwhile also been facilitated considerably, and can be handled for you by the lawyer. Unless a claim is disputed, enforcement against your debtor can also be conducted abroad, by means of a European enforcement title.
Overview of the procedure in the case of debt collection by the attorney-at-law:
- Gathering the basic data on your debtor and inspecting the insolvency file.
- Sending out the lawyer’s reminder to your debtor, which outlines the outstanding claim, inclusive of interest, reminder fees and attorneys’ fees.
- If your debtor pays up after receiving the reminder, the outstanding amount, including any interest and your reminder fees is transferred directly to your bank account.
- Should no payment have been made by the time the payment deadline has expired, the attorney-at-law may examine the further data, such as the place of residence or registered office, the current local citizen registration data, etc., and consider the further odds of collection.
- Should it be likely that your claim can be collected, the action will be filed, and then enforcement carried out against the debtor. In the event of the latter being successful, the outstanding amount, including any interest and your reminder fees, will be transferred to you.