Information in debt collection

In debt collection proceedings we stay in permanent contact with the debtor by telephone or in written in order to force him to immediate payment and ascertain the reasons of non-payment (f.e. insolvency, cash-strapped, serious legal objections). If the debtor does not pay the debt immediately, we try to acquire all information on the financial standing and solvency of the debtor by different database services.

Please check our detailed information concerning our conditions and course of court proceedings here>>

For information to bankruptcy proceedings here>>

1. Out-of-court activities, prelegal proceedings:

As our client you come up to pay nothing in out-of-court-activities. We understand that your debtor is solvent but not willing to pay the invoice(s) and has not raised any serious legal objections to the claim. In debt collection cases as such we generally do not claim any retainer fee for our services neither in out-of-court proceedings nor in court proceedings. Therefore our clients have to pay no fees for our services.

In Germany the debtor is obliged by law to pay all our fees and costs of in- and out-of-court matters, if he is in delay of payment, in case of violation of the contract or is defeated in a law-suit (successful court proceedings). As well he has to bear all costs of court proceedings including court and attorney's fees if he lose a lawsuit. Hence, all Lawyer's and Court fees and costs are basically recoverable from the debtor. Because the debtor has to expect substantial costs we regularly succeed in out of court collection.

In addition we will not invoice supplementary fees or expenses in case that we would have to state that the debtor is definitely not solvent or bankrupt and the client decides not to go to court because of lack of possibilities to cover the claim in execution proceedings against the debtor.

Here you will find our conditions very detailed and further important information: here >>

Our out-of-court-service regularly covers

• to review the legal position,
• to advise the client concerning legal problems or risks of (court) proceedings,
• to investigate the actual address and financial standing of the debtor,
• sending a dunning letter with a deadline for payment (within 8-10 days) including our fees,
• correspondence with the debtor in written and by telephone,
• negotiations concerning an instalment agreement (if advisable).

Costs and fees for information and investigation like trade register fees, internet databases, fees of commercial agencies and resident's address registration office a.s.o. are free of charge too.

Therefore the first step is to review the legal position, to ascertain the financial standing of the debtor by information given by different registers, databases and authorities and to contact the debtor by phone and sending a dunning letter at the same time. Please note that it is very important to dispose of a valid postal address of the debtor, particularly legal action become necessary.

Anyway, we will always keep you informed about the actual situation and the next steps we would like to recommend. Please check our new FAQ's here and post your questions there.

Please note that in most of the debt collection cases it is not necessary to initiate court proceedings because we regularly succeed to collect the debts out of court (on the background that the debtor has to bear substantial costs and fees).

2. Court proceedings:

If the debtor does not react or objects to the claim and all measures taken to force him to payment turned out with no result, initiation of court proceedings become necessary.

2.1. Court fees: It is to point out that in case of legal action at the court (by submitting a statement of claim, pleading) the court requires an advance payment of court fees. Otherwise the court rejects each action. The court fees are related to a legal table. This scale of fees is binding by law. The amount depends on the amount in controversy (sum in dispute, amount of your claim). For instance the court fees for a claim of 10.000,00 EUR are amounting to 588,00 EUR and for 20.000,00 EUR up to 864,00 EUR. We will give you further details on your request (legal table of fees: check here). We will not initiate legal proceedings against your debtor without your prior consent.

Please note that we are called and admitted to each court all over Germany.

We kindly ask for your understanding, that those court fees can not be covered by our office, meaning that you would have to provide us with the court fees in advance.

2.2. Lawyer's fees:

Our clients have to pay no fees for our services in pre legal debt collection proceedings. In small cases and cases in serious dispute we will arrange a percentage of the claim or a closed budget as a retainer fee. You will receive our table of fees immediately on your request. Thus all activities are covered for court proceedings.

Only in case the debtor raises serious legal objections (defective goods, delay in performance, malfeasance, malperformance …) or if it is obvious that we cannot cover our fees by the debtor because of lack of assets of the debtor we have to reserve to charge our fees. Therefore we have to charge our fees in case if it is obvious that we would have difficulties to enforce our fees after having obtained a judgement to your favour because the debtor do not dispose of assets to enforce in or assets like bank accounts, property, real estate, are lacking or not known.

In case we are successful in court proceedings and collecting the debt we refund the full retainer payment (incl. the court fees).

Further on we can arrange working on a moderate hourly rate or charge a lump sum (flat rate scheme) fee for working on the file. Please note that German Law Firms are regularly subject to the German Federal Law regarding Lawyer's Fees (RVG, Rechtanwaltsvergütungsgesetz). Therefore "success fees" are not legal in Germany and law firms are legally bound to charge at the RVG. It is common to ask for a retainer. As a matter of course it is possible to find an individual agreement, particularly in case of multiple debts or we take over your claim management.

Please note that we regularly do not ask for a retainer if the debtor does not contest nor object to the claim seriously ("plain sailing").

Due to our standard of service we always provide our clients with general information concerning the actual legal position and proceedings.

If the debtor is in bankruptcy proceedings, we file your claim at the bankruptcy court and will preserve your rights (f.e. retention of title).

3. We regularly need the following documents and information:

• all contact details of the debtor and your company (legal form, full name of the legal representative), Your VAT-ID-No.
• contract, all invoices, whereas copies are sufficient
• reminder, demand letter a.s.o.
• order, confirmation of order (if applicable), delivery notes
• receivables account, statement of account (if applicable)
• placement form/short statement of the matter (if applicable)
  

It is firstly sufficient to send us the invoice and the contact information of the debtor and your company.

Please send us the documents via e-mail (feinen@netcologne.de, please no zip-, msg or rar-files) or fax 0049-2212336401.

4. Enforcement proceedings:

The enforcement of the judgement could be a further necessary step in debt collection. It is not the obligation of the court or other authorities to enforce the judgment - enforcement and execution is the task of the creditor himself or his Lawyer's. A lot of measures are possible to levy execution (attachment of the bank account/salary, seizure on property a.s.o.), more details are given on your request.

For recovery by legal means we need firstly the court order to pay (judgment).

We can
- attach a bank account of the debtor here in Germany
- order a bailiff to take away assets of the debtor
- bring the manager to an affidavit of means
- seizure of claims (debtor’s claims)
- seizure of real estate
- file for bankruptcy (regularly not to recommend)
Please inform us whether you know a bank of the debtor’s company or other assets in Germany.

Please inform us immediately if you receive any payment from the debtor, mentioning the exact amount and the date of the credit to your bank account.

5. Power of Attorney, Proxy:

It is not necessary to provide us with a written Power of Attorney (check here for the download). We will inform you if we need it anyhow (f.e. for cancellation of a contract). In that case please sign and return the Power of Attorney and add the full name (first name, surname) of your company and its director (legal representative) and stamp it.

Do not hesitate to contact us if you have further questions. For further questions we are always prepared to support you with detailed information - on our work and our conditions, fees and charges.

Our new company information service: information about your debtor for free (is a valid address on your disposal? Is the company still existing? Has it ceased trading? Are there bankruptcy proceedings pending on court? What is its legal form?).

Anwaltskanzlei Feinen
Engelbertstrasse 16-26
D-50674 Köln
0049-221-2336400 Tel.
0049-221-2336401 Fax

e-mail -click here

Please note that we are able to represent your interests all over Germany. Our Lawyers are called to the bar at every court in Germany.