Newsletter EULEO

Debt collection in Germany – what you should know about it?

Cooperation with foreign counterparties is usually profitable for European entrepreneurs. However, in the situation of clients’ insolvency, the debt recovery might become tough. How one could successfully recover accrued money from the German counterparties? Answers to that question can be found in this article.

Political stability and a good economic situation in Germany makes it an important export market. Despite this fact, we need to remember that the companies within this country might have financial issues. Every time the polish entrepreneurs notice any difficulties regarding German client’s solvency, they should commence a debt collection process.



debt collection



How to recover receivables?

The best way to start the debt recovery process is an amicable collection – this is the easiest and the quickest mean to solve the case. More so, the German law favors conciliation, even after referring the debt collection to the court. It is worth to entrust the case with an experienced and specialized company which cooperates with Partners in Germany. It guarantees that the proceeding will be conducted in accordance with German law and the entrepreneur will be able to track its course.

Debt collection costs

The rate of debt collection in Germany is agreed on individually by the debt collection companies, usually it depends on the value of the bone of contention. Costs of judicial proceedings and lawyer’s remuneration are calculated accordingly to the Act of forensic charges (RVG). However, entrepreneurs do not need to worry about these payments– they can be charged to the debtor.


What you need to remember?

  • Before starting the cooperation, it is worth to check the counterparties thoroughly, for example through ordering an economic report.
  • While preparing an agreement with a German entity, it is useful to set the terms precisely, for example conditions of trade credit.
  • Having thorough information about the counterparty, such as contact details, address, VAT number, will make the debt collection easier.
  • It is best to start the recovery proceedings before the limitation period. In Germany it is 3 years and when it comes to transportation services – a year.
  • Amicable debt collection in Germany can take from couple of weeks up to couple of months whereas the judicial proceedings may take even more than a year.
  • Bailiffs in Germany receive a flat remuneration which does not depend on the efficacy – one may assume, that they are less engaged in proceedings. Furthermore, they do not check the assets of the debtor therefore it is useful to obtain this information another way, for example with a help of debt collection company.


Cooperation with German contractor may be highly attractive for European entrepreneurs. However, when deciding on international activity should take a bigger transaction risk into consideration. In case of any problems with payments, it is best to refer the case to a specialized debt collection company. Owing to this fact, the creditors will avoid difficulties deriving from legal and linguistic differences and will recover their monies successfully. European countries