Debt recovery abroad may at first glance appear complex and costly. In the case of Germany, however, the opposite is true, as with a professional and systematic approach the process is efficient, fast and legally predictable. In this article, we draw on our long-standing experience in recovering debts for foreign companies operating in Germany, particularly in the fields of manufacturing, transport and construction services.
- Before enforcement: assessment of the debtor’s solvency
Successful debt recovery is based on quality initial information. Therefore, even before sending a pre-action letter, we recommend assessing the debtor’s financial situation. In practice, we use:
- publicly available registers such as the German Commercial Register (Handelsregister) and insolvency register (Insolvenzbekanntmachungen),
- reports from specialised agencies combining public and non-public data, for example credit rating, payment history, ongoing enforcement proceedings or ownership links.
Based on this information, we can advise the client whether it is appropriate to proceed out of court or through court proceedings and what level of costs it is reasonable to invest in the process.
- Out-of-court phase: pre-action letter and direct contact
The first step is usually the sending of a lawyer’s pre-action letter. In the German legal environment, such a letter carries significant weight and often leads to payment already at this stage, without the need for further action. It is prepared professionally, in German, and contains all legally required elements.
If the debtor does not respond, our German-speaking lawyers can contact them by phone and attempt to communicate directly with the management or responsible persons. This personal approach often proves effective where written communication has failed.
✅Benefit for the client: low costs, quick response from the debtor and the possibility to avoid court proceedings.
- European Payment Order: fast judicial solution
If out-of-court measures are unsuccessful, the next step is filing an application for a European Payment Order (EPO) under Regulation (EC) No 1896/2006.
This instrument is particularly suitable for commercial claims and allows:
- simplified and accelerated proceedings without the need for a hearing,
- representation of the client by a Slovak lawyer before a German court,
- issuance of a payment order typically within 2 to 3 weeks.
In practice, the service of the European Payment Order itself often leads to payment or to an agreement on instalments.
- Objection: legal representation in civil proceedings in Germany
If the debtor lodges an objection against the payment order, we ensure legal representation for the client through our experienced partner lawyers in Germany.
Our experience shows that:
- most cases are closed at the first hearing, often by way of a court settlement,
- if no settlement is reached, the court usually decides the case at the first hearing,
- judgments of first instance courts carry significant authority and are upheld in the majority of cases on appeal.
- Why debt recovery in Germany is effective
The effectiveness of debt recovery stems from the characteristics of the German legal system, which is known for speed and predictability of court proceedings, a consistent approach to debtor accountability and a high level of enforceability of legal decisions.
Unlike in some other jurisdictions, it is not common in Germany for debtors to avoid liability through abusive insolvency proceedings or fictitious transfers of assets. Responsibility for obligations is taken seriously and the courts provide effective protection to creditors.
- Conclusion: it pays off
Based on our experience, it can be concluded that the recovery of commercial claims in Germany is worthwhile. The combination of legal certainty, effective instruments such as the European Payment Order, a personal approach and cooperation with German lawyers allows for fast and cost-efficient solutions.
If you have a claim against a German customer or business partner, do not hesitate to contact us. We will review your situation and recommend the most appropriate course of action.