News and information:

Pricing model for court proceedings (reduced court fees) - contact us for details!

If all efforts failed to collect the debt out of court court proceedings are the sole possibility to pursue the debt. Most of the debtors put the head in the sand, they simply have no money, are nearly insolvent or - on the other hand - they are fit in handling their creditors: They assume or hope that some day all efforts run off into sand or they take a chance if the client take them to court in fact. Regularly it makes less sense to send more than 3-4 letters especially to business people because permanent requests and threat with court action becomes non-credible some day if no consequence follows in fact. To stop all activities out of court is sometimes frustrating especially in cases the debtor runs business further on.

For court proceedings we already offer favourable conditions for our fees but the client has to take over the court fees related to the legal table in Germany.

Due to the fact that most of the clients are reluctant to incur costs and to take risks in court proceedings we would like to introduce the possibility to reduce court fees at around 80% off the regular court fees (e.g. claim of 2000 EUR: 36,50 EUR instead of 219,00 EUR/claim of 4000 EUR: 52,50 EUR instead of 315,00 EUR).

Such proceedings are prefered from a lot of companies in Germany. They can come very close to a writ of execution but have no further remarkable costs to bring court proceedings to an end if the debtor defends himself further on. So they have a "decision guidance" to decide to waive the claim or to "throw good money after bad".

Difference to ordinary court proceedings:
- Ordinary Court Proceedings: The client decides to take the debtor to court in any case, he intends to obtain a writ of execution (for enforcement or to put pressure on the debtor by threat of the writ of execution eg. to force and support an instalment agreement). He do not want playing with him anymore. Therefore court fees are to pay in total (!) and we offer flats for our services to make advances to the clients.

- Our Pricing model: The client is reluctant to go to court because of the investment of the court fees in total or the possible outcome of the law suit. But he wants to put more pressure on the debtor by let sending of an official court order to the debtor but he does not want to go through whole court proceedings maybe because of the time and efforts he has to invest or he assumes that the client is not solvent anymore. The client wants to test if the debtor really intends to defend himself and would take the risk of court proceedings (and fees) for him as well. The client wants to check if he can get a writ of execution without investment of considerable court and lawyer's fees. Therefore the client decides to go out of proceedings if the debtor objects in court proceedings. He has low costs and gets certainty now that without a complete and adversary court proceedings (court hearing, witnesses, reply to pleadings necessary etc) it is not possible to force the debtor to payment.

Benefit:
- The client can enter in court proceedings with small costs and without any risk
- The client can see if the debtor defends himself notwithstanding he received a court order in fact
- The client gets the most reliable fact whether his claim can be secured by writ of execution and enforcement on a very cheap way
- The client can exit proceedings as he likes

Cases suitable:
- no objections of the debtor against performance and invoicing of the client out of court
- contact by phone, fax or/and email is possible, all contact details of the debtor can be verified
- debtor is not out of business, no negative hints of insolvency
- a bank account is known
- we advise if a case is suitable

Success of debt collection is depending on ...

Often we are asked for a possible success of collection and prospects to enforce the debt.

Please note that success of collection is regularly not a question of the legal position or applicable law.

Success in debt collection rather is depending on all information about the debtor like complete and valid postal address, full name, Birthday, legal form (corporate company or individual), email accounts, web sites, TelNo. and Fax.No., bank details, assets like shares, real estate (...) of the debtor and the documentation the client provides us with.

Regularly we do not know if the debtor is solvent (anymore).Certainly we gather all information about the debtor in each case by our databases and research proceedings! We check the risk before starting court proceedings and we can get information if the debtor has filed for bankruptcy very quick. On the other hand it is to take in account that the client has concluded the contract. Therefore he was or is much closer to his former business partner as a debt collection agency or lawyer. Furthermore it is regularly not possible to get reliable information about the factual and definite real financial standing of the debtor.

But there are simple steps to reduce risks and to get an impression on the standing of the debtor:
- Is the phone of the debtor working, also fax and email? Is the Homepage still online?
- Which results can be found about the business by using a search engine like Google, Bing or Yahoo? Do we find different addresses, phone numbers, negative reviews, kinks to different business activities ...?
- Is a contact to the debtor possible? Is it possible to get information by employees, commercial agents or common business partners?

What do I have to do if I want you to collect our debt?

Here our simple answer: Please send us the invoices via email! We will contact you immediately.
(if possible no zip-, msg, eml- or rar-files, not more than 3MB per mail or by fax 0049-22116844619/30520048045 and inform us if you not receive a confirmation of receipt within 48 hours).

Statute of limitations: Please note that Your claims of Year 2008 could become time-barred on 31.12.2011!
Please note that a claim based on purchase is legally statute-barred after 3 years starting from conclusion of contract (order, confirmation of order). It is not longer possible to sue the debtor at court after 3 years (end of the year). If you claim for a different cause in law (f.e. loan) please contact us.

Hence, the regular limitation period is 3 years for all claims based on civil law. Exceptions are stipulated in the law (please note: the regular limitation period for all claims of the buyer/purchaser for defects liability/implied warranty is 2 years).

The limitation period starts end of the year in which the claim legally comes into existence regularly by concluding a contract, not the date of delivery.

Example: if the claim came into existence on 30.07.2008 the limitation period starts on the 31.12.2008 and ends on the 31.12.2011. If the last day is not a working day the period defers to the following working day.

The expiry of period of limitation shall be suspended in cases of negotiations between the parties about the claim or the facts which are the basis of the claim or initiation of court proceedings. The limitation period is extended by that time period. That is what we cannot assess without further information.

Please contact us if you need further information.

the law (please note: the regular limitation period for all claims of the buyer/purchaser for defects liability/implied warranty is 2 years).

To avoid, cut or to suspend the statute of limitations it is necessary to initiate court proceedings before the 31.12.2011! The application or plaint must definitely be received by the court before that day. Otherwise your debtor can plead the statute of limitations and it is not possible anymore to force the debtor to payment.

Increase of Attorney Email Scams:

Besides tons of emails from the "Nigerian-Connection" (nothwithstanding emails from the spouse of Mr. G??dafi seeking help for transfer of 40 Mio. USD) we recently have an enormous increase of faked emails from Asian companies seeking for legal advice and help. So please do not use such a writing style if you want to contact us :)

Dear Counsel,
We need a Representative through whom our Clients can pay us as most of our client (spread across the Europe) does not want this issue of delinquent accounts becoming an issue of litigation which will at the end of the day not serve our mutual purpose but the pockets of the Lawyers.
It has therefore been agreed by the Management Board of my Company to seek out a Representative Company due to several defaults by our debtor Company, who will collect a certain percentage to be mutually upon, of these outstanding debts in other to be a facilitator and conduit for these monies to get to us.
We strongly believe all fund owed to our Company will be paid upon acquiring the service of your Company since your Company is located there in Europe, and one of the reasons our debtor's proffered for non-payment is based on fact that we do not have payment collection Center in that region.
You should therefore send to us your Company retainer agreement and your firm's compensation policy so we can proceed immediately.

Your truly,

Norio Karashima

The Yokohama Rubber Co., Ltd
36-11, Shimbashi 5-chome,
Minato-ku,Tokyo 105-8685, Japan.
https://www.yrc.co.jp/english

Dear Attorney,
After a careful review of your law firm, we will require your services in recovering of debts from some Customers in your in your state.
If you can help, kindly write back ASAP for more details on these accounts.
Your Sincerely,
Patrick Lee
POLYMER TECHNOLOGIES PTE. LTD.
44 Tech Park Crescent Singapore 638095
Tel/Fax: +852 5808 0278

Attention: Counsel
I am writing on behalf of A One Limited for your possible representation on contract matters.

A One Limited is based in China and our principal activity includes garment manufacturing, Accessories and trading services.

Due to international legal boundaries we are presently incapacitated to exert any pressure on our delinquent customers in Your country. We however think this case is within your jurisdiction which is why we are requesting your services accordingly.
Following our search for a reliable firm or individual to provide legal services, we got your contact information from Your countries lawyers' Directory and after a careful review of your profile as well as your qualification and experience; we are of the opinion that you are capable and qualified to provide the legal services as requested.
Please accept my sincerest appreciation on behalf of A One Limited, in advance for your willingness to render your services as we look forward to your prompt response to our request.
Thank you.
Kun Nung Lee
Director A One Limited
China.

Dear Counsel,
Mutual Introduction/Possible Legal Representation.
Please confirm the receipt of this mail due to the urgency of this matter. If you are not in position to represent us at the moment kindly advice immediately.
After a careful review, we decided to contact you to represent our company (Fujita Manufacturing Ltd.) in Europe. Fujita Manufacturing Ltd. is a manufacturing company in Asia We would require your legal representation for our Europe delinquent Customers.
We are of the opinion that a reputable attorney is required to represent us Europe in order for us to recover monies owe to our organization by oversea customers, and as well follow up with these accounts. In order to achieve these objectives a good and reputable law firm like yours will be required to handle this service. We understand that a proper Attorney-Client agreement must be entered into by both parties. This will be done immediately we receive your letter of acceptance.

Awaiting your swift Response.
Sincerely,
Fujita Ehime, JP
Fujita Manufacturing Ltd.
NISHI-CHIBA CAMPUS 1-23,
Yayoi-cho, Inage-ku, Chiba-shi,
Chiba, 263-8522, Japan

More harmless are those (but extremely annoying):

Dear Partner ,

I am Joseph I. Tan 72year old From United State of American formal Finance Director of J B Trucks Company , My company had business with BP where i made $8.600,000 usd ( Eight Million Six Hundred United state dollars) out of my company knowledge which i legally place this fund in International bank in Malaysia , because of my illness and security in my country i cant direct this fund to my personal account rather i want you to assist me to receive this fund.

The Bank is ready to dispatch it pending on when i present benefiaciry. If you can help me in this transaction, i will compensate you with 30% of the total amount and you will also get benefit from the investment" If there is any kind of agreement that you would like us to have , let me know so that i can start working on for i would like this transaction to be concluded as quick as possible.

Thanks and best regards

Joseph I. Tan
Email:Joitn@hotmail.com

Our debt collection services in other European countries:

We offer our services in debt collection to the same conditions all over Europe as well! Therefore we collect outstanding debts also in Belgium, Netherlands, Switzerland, Austria ... free of charge in out of court proceedings. Please note that our service is provided in English language. In case the debtor does not react or definitely refuses to pay out of court we have to recommend to take court action by Lawyer's in the country of the debtor. For that purpose a Law Firm in the homeland of the debtor must be mandated and we can assist to communicate.

Please contact us if you need further information.

What to do if the debtor does not keep his promises to pay?
The most effective way to secure payments.

Generally we recommend to take the debtor to court to obtain an enforcable writ of execution/judgment even if he acknowledged the claim, made payment offers but did not keep his promises or is in delay of payment.

Please note: In cases the debtor agreed to pay, acknowledged the debt, confirmed that he has to pay, offered a payment plan a.s.o. it is legally not possible for him to contest his obligation to pay in court proceedings. Hence prospects to obtain a judgement to the favour of the client fast are very well.

By an enforcable writ of execution/judgment it is possible to take immediate steps to enforce the writ of execution/judgment by seizure/attachment of the bank accounts, wages, earnings, to order a bailiff or to force the debtor to affidavit of means (to compile a schedule of his income and assets) a.s.o.

Such a handling does not exclude an amicable payment plan but in contrary secure that the debtor keeps his obligations and the dates of payment.
Therefore we can put more pressure on the debtor and we do not lose time to obtain a court order or judgment.

To initiate court proceedings we can offer favorable, competitive terms and reasonable fixed-rates.

Our new offer for Lawyer's fees in court proceedings, invoicing:

because clients from abroad often are reluctant to incur costs and fees for court proceedings we have restructured our conditions related to undisputed claims up to 4000 EUR.

From our experience debtor's increasingly ignore reminders and dunning letters from the clients as well as from Lawyer's. The background often is to wait out if the creditor takes the matter serious and take the claim to court or waive the claim some day. Even in cases of a bad financial situation it mostly possible to find an instalment agreement anyway if the pressure of pending court proceedings forces the debtor to react.

The step to court is important because the debtor has to note that now court proceedings are pending and the creditor is definitely willing to pursue his claim and is able to enforce the claim in near future.

Court and Lawyer's fees in Germany regularly are related to a legal table. Related to court fees we have no possibility to change any conditions but related to our fees we can offer different conditions.

To initiate court proceedings we can offer favorable, competitive terms and reasonable fixed-rates.

In Germany we can initiate court proceedings by electronical court proceedings to achieve a court order to pay a debt. Because our workflow is well organized in data processing with all courts in Germany we can offer different conditions for our services as long as the debtor does not contest the claim. Even in this case we have to provide the court with a detailed statement of claim in written and we have to attend to a court hearing, so that processing of the file means considerable work for us we can not afford without being paid for our services.

Please contact us for details.

The advantage for the client is that he has to invest less money than usual and get notice shortly if the debtor contests and he has to invest more money and has the risk to lose the case or if it is possible to obtain an order to pay a debt in around 8-12 weeks. In cases the debtor raises objections or file an appeal to the court the client can decide to stop all activities or to pursue the claim at court further on.

The debtor is obliged to refund all court fees, if he is defeated in the lawsuit. Hence, all lawyer's and court fees and costs are basically recoverable from the debtor.

Our new Service in tracing a debtor:
Not only for court proceedings a valid postal address of your debtor is important: A company without postal address is probably out of business.
To check the postal address, telephone connections, pending bankruptcy proceedings, affidavit of means, we offer a flat of 80 Euros for companies and 3,90 EUR for individuals. Please use Paypal (contact) for fast processing or send us an email, we will instruct you how to proceed in detail.

Retrospective view of 2010 an outlook on 2011: increased economic development in Germany, less bankruptcy proceedings but no enhancement of the financial standing of debtors.
Shortly!

Recommendations in debt collection by view of German Lawyer's:
Because of the recent economic developement German business partners which were in financial difficulties in the past years probably won't come out of this situation in the next future.

They will try further on to delay payments by promises, false allegations about the bad financial situation, excuses and far-fetched legal objections like defective of goods a.s.o.. Your attempts to force the debtor to payment by phone calls and emails failed...

Based on our experience of 21 years we have to state that in the past it was mostly sufficient for us as Lawyer's to force a debtor to a fast reaction by letter and phone calls. Nowadays debtor's do not react anymore, they bury their heads in the sand, ignore the situation, sit out the situation, hope that never serious steps will follow ... . Moreover if they react the play further on, instalment payments are delayed, promises to pay next week ...
The only measure to get strength, seriousness and severity in proceedings is to take them to court from the beginning. This measure disclose to the debtor that the situation becomes serious and that it is possible that enforcment proceedings can follow immediately if the debtor does not keep his promises or instalment agreement.

Such a handling does not exclude an amicable payment plan but in contrary secure that the debtor keeps his obligations and the dates of payment.
By this we can put more pressure on the debtor and we do not lose time to obtain a court order or judgment.
In Germany it is possible to institute electronical proceedings (electronic data processing by the court) very fast and easy. The advantage is that (court) fees are less than in ordinary proceedings at court. Please call us if you require more information.

To initiate court proceedings we can offer favorable, competitive terms and reasonable fixed-rates.

The 10 most important problems to collect a debt:
1. Neither the full company name and legal entity nor the name of the legal representative of your business partner is known.

2. The exact postal address of your business partner is not known (P.O. Box is not sufficent)

3. You do not know all contact details of your business partner (fax, email, Homepage)

4. You don't have checked telephone connection, nor the Internet to find information about your business partner.
5. You do not know bank details of your business partner.
6. You do not have something in written concerning the business deal (order, confirmation of order, delivery notes, emails) or those information are deleted (emails)

7. Your invoice is not correct (Invoice-date, Invoice No., VAT-Id-No., kind of performance)
.... to be continued