Effective debt collection through clever contract design

It is often sufficient to include standard clauses in the contract that secure the claim. Rarely does a contractual partner oppose the use of such clauses at this stage of the business relationship. Of course, he has an interest in starting the contractual relationship properly. If you do not take this opportunity, you will not be able to make up for this omission later when the claim is in danger of defaulting. A debtor will of course not give his consent to amend the contract to his disadvantage once it has been concluded. Companies underestimate the possibility of minimizing the risk of default by designing contracts well. Experience shows that the costs of debt collection in court are many times higher than the costs of legal advice from a lawyer who is well versed in drafting contracts.

Effective debt collection through correct invoicing

Proper invoicing should be standard practice these days. Nevertheless, it happens time and again that errors or omissions in invoicing lead to delays in payment. Let an experienced lawyer advise you on this. The cost of legal advice is minimal in this case.

Effective debt collection through a structured dunning process

Proper dunning needs to be learned. Use the psychology of reminders to your advantage. When a debtor receives a “first reminder”, he naturally assumes that the creditor will not take legal action to collect the debt if the payment deadline is not met. After all, the creditor announces a second reminder himself. By law, sending one reminder is sufficient. There are even cases where the creditor does not even have to send a reminder to the debtor. Creditors can even exclude the requirement for a reminder by cleverly drafting the contract.

Effective debt collection through out-of-court demand letters

In practice, we see time and again that creditors get caught up in an exchange of countless emails with debtors. In doing so, creditors overlook the fact that they even risk worsening their legal position as a result. It is not uncommon for them to make concessions to debtors that ultimately achieve no result. In out-of-court debt collection, less is often more in correspondence. Even at this stage of debt collection, take advantage of the experience of a lawyer specializing in debt collection. You can avoid many of the pitfalls of legal proceedings at this stage.

Effective debt collection through clear payment settlements

Sometimes a creditor agrees to grant the debtor a deferral of the debt or payment in installments within the framework of a payment settlement. If the debtor complies with the payment settlement and pays the claim, such a settlement makes sense. The situation is different if the debtor does not comply with the agreement concluded with the creditor. In this case, a payment settlement at best only leads to a delay in the repayment of the debt. Sometimes the conclusion of a payment settlement that is not adhered to by the debtor leads to the default of the claim. This is particularly bitter for the creditor. Even at this stage of debt collection, effective debt collection can be facilitated by concluding a creditor-friendly payment settlement. Seek the help of a lawyer experienced in debt collection.

Court debt collection and debt recovery by a lawyer

The German dunning procedure

Foreign dunning procedures

The European dunning procedure

The lawsuit

The documentary process

Arbitration proceedings

Interim legal protection: arrest and interim injunction

Compulsory enforcement

Compulsory enforcement against movable assets

Compulsory enforcement against immovable property

Compulsory enforcement against claims

Forced sale

Collateralization of claims

Representation of creditors in insolvency