Debt collection in Germany
How to recover a commercial debt from a German debtor
Germany is an important destination market for several countries. Despite the structured and reliable legal framework, cases of non-payment are not uncommon and may make it necessary to initiate debt collection proceedings against German debtors.
In case the creditor is based in the European Union, judgments and injunctions issued by Courts of the creditor’s state are automatically recognized in Germany (and vice versa), significantly simplifying enforcement procedures.
Tools for international debt collection in Germany
In case of a EU-based creditor willing to initiate recovery proceedings against a debtor based in Germany, he can apply to the national courts (if they have jurisdiction) and then enforce the title in Germany, or choose from a range of procedural tools provided for by European and German law:
- Ordinary court proceedings in Germany: for amounts up to €5,000, the Amtsgericht (district court) has jurisdiction, while for larger amounts, the Landgericht (regional court) decides.
- Mahnverfahren: this allows a payment order to be obtained quickly without a hearing, based on a standard form. If the debtor does not object within the time limit, the creditor can request an enforcement order (Vollstreckungsbescheid) valid for seizures and attachments.
- Precautionary measures (Arrest): the creditor can request the seizure of the debtor’s assets if there is a real risk of the assets being dispersed, subject to a guarantee and documentary evidence of the claim and the urgency requirements.
- European order for payment: applicable in all EU Member States, it is particularly useful for uncontested claims.
- European Account Preservation Order (EAPO): introduced by EU Regulation No. 655/2014, it allows the funds held by the debtor in a bank account within the EU to be frozen without prior notice.
Why rely on an Ursus Network legal expert for debt collection in Germany
The German system requires attention to form and the collection of documentary evidence (contracts, invoices, delivery notes, correspondence). Careful management of the initial stages—for example, sending a demand letter drafted by a German lawyer—can significantly increase the chances of recovery.
Ursus Network provides specialized assistance in international debt collection, supporting companies and professionals in selecting the most effective strategy – from payment orders to legal action – and helping to minimize time and costs.
If you would like to learn more about the main features of the debt collection system in Germany, please refer to the Practical Information below.
