Help with debt collection in Germany

As you might know, collecting debt in Germany can be problematic. To increase your chances to succeed, you should contact a debt collection agency with long experience of debt collection in Germany. One good example is EOS KSI, a member of ECA, European Collectors Association.

Debt collection in Germany – glossary

To hire a debt collection agency in another country can be a jungle. Rules and regulations are different from the home market, and it can be hard to understand all words and expressions that are used in the debt collection business in another country like Germany. For people who need to collect debt in Germany, here is a small glossary with some of the most important words.

Mahnbescheid

A form of summons to pay to make a debtor in Germany to pay his debt. This is often the cheapest way to collect money, since fees and costs for the court and lawyers depends on the size of the unpaid debt is. Also, most costs can be debited the debtor.

Widerspruch – when the debtor refuses to pay

The debtor contests the claim. Then the German debt collection agency needs to begin legal action. The disadvantage is that the cost for the trial can be up to 6 times higher than for a Mahnbescheid. When collecting debt in Germany, it is normally better to make the debtor pay without having to go to court.

Vollstreckungsbescheid

The verdict, making it possible to collect the debt by seizure of property etc. In debt collection in Germany, the legal authorities can for example seize real estate, personal property and collect money from the debtor’s salary.

Eidesstattliche Versicherung – when everything else has failed

When a debt collection agency in Germany has taken all the measures it can to collect the debt, the debtor can be forced to provide an assurance of all assets that can be of interest for the creditor.