This guide explains the German debt collection process ("Mahnverfahren"), focusing on essential German terms and their meanings, providing expats with the tools to navigate this legal matter confidently.
Step 1: Rechnungseingang beim Schuldner (Invoice Receipt by the Debtor)
The process begins when an invoice ("Rechnung") is received by the debtor ("Schuldner"). If the invoice is settled within the agreed payment terms, no further action is necessary, and this prevents the initiation of a dunning procedure. It's the first and most critical step to ensure a smooth transaction and avoid any legal collection processes.
Step 2: Verzug und Mahnung (Default and Reminder)
When no payment is made within 30 days after receiving an invoice, or if a different payment term wasn't agreed upon, the debtor enters a state of default ("Verzug"). In this phase, the creditor typically sends a payment reminder ("Mahnung") to the debtor. In Germany, there is no legal requirement for the number of reminders before escalating to a "Mahnbescheid" (formal payment reminder notice).
Often, only one reminder is sent, emphasizing the importance of timely action upon receiving it. This reminder serves as a formal notice to the debtor to settle the outstanding amount and can specify an additional period for payment, often 14 days.
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Please note: This content is for informational purposes only and does not constitute legal advice. Deutschbuddy (Sonnemann Medien- und Vermittlungsdienste) assumes no liability for the use of this document.
Step 3: Außergerichtliches Mahnverfahren (Out-of-Court Dunning Procedure)
This step involves the creditor initiating an out-of-court dunning procedure ("außergerichtliches Mahnverfahren") by issuing a reminder ("Mahnung") to the debtor, typically allowing an additional period for payment, often 14 days.
Step 4: Mahnbescheid (Payment Reminder Notice)
Should the debt remain unsettled, the creditor can request a payment reminder notice ("Mahnbescheid") from the court, indicating the start of formal legal proceedings.
Step 5: Widerspruch (Objection)
Upon receipt of the Mahnbescheid, the debtor has the opportunity to file an objection ("Widerspruch") within a specified timeframe, usually two weeks, if they dispute the claim.
Step 5: Gerichtliches Mahnverfahren (Judicial Dunning Procedure)
If the claim is contested, the case may escalate to a judicial dunning procedure ("gerichtliches Mahnverfahren"), which will be heard either in the local court ("Amtsgericht") for claims up to €5,000, or in the regional court ("Landgericht") for higher amounts.
Step 6: Vollstreckungsbescheid (Enforcement Order)
Failing to object to the Mahnbescheid allows the creditor to obtain an enforcement order ("Vollstreckungsbescheid"), which can then be used to initiate enforcement actions against the debtor.
Step 7: Zwangsvollstreckung (Forced Execution)
The final step in the dunning procedure, if the debtor does not pay or object, is forced execution ("Zwangsvollstreckung"), where the state enforces the collection of the debt, potentially through seizing assets or garnishing wages.
By understanding these terms and the corresponding steps in the dunning process, expats can better navigate through a situation that might otherwise be stressful and confusing. Remember, it's important to address any financial obligations promptly to avoid this legal procedure altogether.
Important Note: Consultation with a legal professional is always recommended if you are involved in a dunning procedure to ensure you fully understand your rights and obligations.
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