How Debt Collection Works in Germany – Step by Step

Step 1 – Attorney demand letter (anwaltliche Mahnung): a formal payment demand from a German law firm, setting a deadline and claiming default interest; in our experience this resolves a substantial share of cases, because German debtors know what follows.

Step 2 – Court order for payment (Mahnbescheid): a fast, standardized court procedure without a hearing – if the debtor does not object within two weeks, you obtain an enforceable title within weeks.

Step 3 – Litigation: if the debtor objects, the case transfers to the competent court; as attorneys we simply continue the same case – no handover, no new provider.

Step 4 – Enforcement (Zwangsvollstreckung): account garnishment, salary garnishment, asset disclosure under oath, and registration in the public debtor register. A German judgment is enforceable for 30 years.

What It Costs – and Who Pays

German law works in your favour: once the debtor is in default, statutory default interest accrues (nine percentage points above the base rate for commercial claims, Sec. 288 German Civil Code), and the reasonable costs of legal enforcement – including attorney fees under the statutory fee schedule (RVG) – are, as a rule, recoverable from the debtor as damages caused by default. This is the statutory normal case, not a guarantee (an insolvent debtor pays nobody). Court fees for the payment order procedure are deliberately low. Before you engage us, you receive a transparent written cost overview in English – no open-ended hourly surprises: transparent fee agreement, statutory fees largely recoverable from the debtor as damages for default.

EU Creditors: The European Order for Payment and Cross-Border Enforcement

For creditors within the EU, two additional instruments make collection in Germany remarkably efficient: the European Order for Payment (Regulation (EC) No 1896/2006) for uncontested cross-border claims, and the Brussels I recast regime (Regulation (EU) No 1215/2012), under which a judgment from your home jurisdiction is enforceable in Germany without exequatur under the Brussels I bis Regulation (EU) 1215/2012 – German judgments are directly enforceable across the EU.

We advise on the fastest route in your constellation: German proceedings from the start, the European procedure, or enforcement of your existing foreign judgment against German assets – including judgments requiring recognition from non-EU jurisdictions such as the UK or the US, where recognition depends on bilateral practice and local proceedings.

Why a German Law Firm – and Why Frankfurt

As Rechtsanwälte we handle every stage in our own hands – demand, court order, litigation, enforcement – and we are admitted to represent you before German courts nationwide. Our firm combines attorneys and certified tax advisors under one roof, which matters in commercial cases (interest computation, VAT questions on damages, insolvency scenarios). Frankfurt am Main is Germany's financial capital and home to one of its busiest commercial court systems; from here we enforce nationwide. Communication runs in English throughout – contracts, status reports and invoices included.