Spain – legal action for the recovery of debts documented in invoices

If a Spanish entity owes a certain, liquid, and enforceable sum documented in an invoice, legal proceedings known as “procedimiento monitorio” may be initiated to recover the debt.

First, it is necessary to use the appropriate means of alternative dispute resolution (ADR) and initiate a mediation, conciliation, or binding offer process reserved for the debtor to try to find an out-of-court solution to the issue. Once this prerequisite has been unsuccessfully met, the actual legal proceedings can be initiated.

To initiate legal proceedings, it will be necessary to apply to the Court of First Instance corresponding to the debtor’s domicile or registered office, and it will not be necessary to engage a lawyer or solicitor to file the initial application, as it will be sufficient to complete an official form, which can be submitted, together with the accompanying documents, in person or online.

It is also possible to submit the application through a lawyer, who must be granted power of attorney; if the application is submitted from abroad, the power of attorney must be accompanied by an apostille under the Hague Convention.

If the debtor does not pay voluntarily and does not oppose the initial request, the order for payment procedure is terminated and enforcement and seizure of assets may be initiated. If, on the other hand, the debtor objects in writing, the proceedings are also terminated, but ordinary proceedings are initiated, requiring the intervention of a lawyer and a representative, with more complex and lengthy procedures.

The proceso monitorio is, in any case, a simple procedure which, if the above requirements are met, allows the creditor of a Spanish debtor to collect their debts quickly and easily.

The Spanish order for payment procedure is complemented by the European order for payment procedure, which will apply when the debtor and creditor are domiciled or habitually resident in different Member States of the European Union, provided that the claim is pecuniary, for a specific amount, due and payable. Under this procedure, the creditor will submit an application to the court concerned using a standard form and, if the creditor is domiciled or habitually resident in different Member States of the European Union, the application will be submitted to the court.

The European Enforcement Order will be enforced automatically in the other Member States, unless the debtor objects in writing within 30 days. In that case, the proceedings will continue before the courts of the Member State of origin in accordance with the national rules governing ordinary civil proceedings.

This European order for payment procedure is particularly useful for simplifying debt recovery at European level by establishing a rapid and unified procedure that would reduce the costs of disputes between neighboring states.