Debt Collection in Spain
Debt collection Spain At CC Lawyers, we understand the diverse situations that can lead individuals or businesses to seek help with debt collection in Spain. We are a dedicated law firm specializing in this area, ready to assist any entity or individual in reclaiming owed funds. Below, we outline the key steps involved in the debt collection process for your understanding.
Need help to recover money in Spain
1. Initial Consultation
The first step is to contact us with all pertinent details about the debt you wish to recover. This information is essential for us to determine whether your case qualifies for a claim. Establishing the viability of the case is crucial to initiate the process and assess the likelihood of success.
2. Financial Viability Assessment
Next, we conduct a thorough review of the debtor’s financial situation. This evaluation helps us understand their ability to repay the debt. If the debtor is a business, we will also assess the financial condition of its management. Once this analysis is complete and we confirm the potential for legal action, we will move forward with the necessary legal procedures.
3. Securing Debtor Assets
If appropriate, we can take steps to safeguard the debtor’s assets as a precautionary measure. This involves securing an injunction to prevent the debtor from selling or transferring assets after they receive our claim.
Contact with us
If you need help to recovery a debt, we advise you to find legal advice.
If you require assistance with debt recovery, seeking legal advice is advisable. Once we evaluate your situation, common strategies for recovering debts include:
1. Sending a Payment Demand
We can initiate the recovery process by sending a formal demand letter or a Burofax (a certified letter that serves as admissible evidence in court). This letter formally requests payment and informs the debtor that legal action may follow if they fail to comply.
Receiving such a letter often encourages the debtor to settle the debt to avoid further complications. Having a lawyer send this letter enhances its seriousness, signaling your intent to pursue recovery.
If the debtor responds, your lawyer may negotiate a repayment plan to avoid court intervention. Resolving the matter outside of court can save time and resources, allowing us to close the debt collection case efficiently.
Best debt collection Lawyer Spain. What to do if someone owes you money in Spain?
2. Court Action for Payment
If the debtor ignores the payment request, filing a debt collection claim in court may be necessary. There are three primary types of claims:
– Proceso Monitorio (Small Claims Procedure): This is suitable for unpaid invoices and other business documents. If the claim is accepted, the court will notify the debtor, granting them 20 days to pay or respond. Failure to comply allows the creditor to request an enforcement order.
– Juicio Cambiario (Negotiable Instruments Procedure): Similar to the Proceso Monitorio but requires the debt to be backed by a negotiable instrument, such as a bill of exchange or promissory note. The judge will typically issue a payment order within 10 days and may authorize asset seizure if the debtor fails to appear.
– Juicio Verbal (Oral Proceedings): For debts up to €15,000, this expedited process allows for a hearing based on verbal arguments from both parties.
– Juicio Ordinario (Ordinary Proceedings): For debts exceeding €15,000, this involves a pre-trial conference for evidence presentation and, if no settlement is reached, a scheduled trial.
– Concurso de Acreedores (Bankruptcy Proceedings): If the debtor is in bankruptcy, a Concurso de Acreedores may be declared, requiring creditors to agree on asset distribution for debt recovery.