Debt Collection in Spain
If your company does business in Spain, it is very important to know how to get the Spanish company to fulfill its payment obligation. There is a possibility that your client in Spain will not pay, for example, because of the COVID-19 crisis.
What can you do as a creditor?
For example, if your Spanish client does not pay, to claim the payment you must send them an extrajudicial claim for payment.
In general, llucia&AS-LAWYERS recommends that a spanish lawyers make the extrajudicial claim because, through the spanish lawyer, the debtors can feel that this extrajudicial claim is real. In addition, in the out-of-court lawsuit, our firm invite to the debtors to negotiate with their Spanish lawyers, doing a direct and secure negotiation with Spanish colleagues.
However, if the out-of-court lawsuit does not give a positive result, you have to start a legal claim. In Spain, any legal claim that exceeds 2,000.00 euros must be filed by a attorney at law and a legal procurator.
There are different ways to take legal action in Spain. These types of procedures depend on the total amount owed:
- The Monitorio procedure (European order for payment procedure) is very fast if the debtor accepts the claim. This procedure is for claims of up to 30,000.00 euros.
- Verbal. This procedure is for claims of up to 6,000.00 euros.
- Ordinary. This procedure is used for claims over € 6,000.00 euros.
On the other hand, Spain has an insolvency proceeding that applies to both individual and corporate debtors.
The insolvency proceedings begin at the request of the debtor or the creditor.
The spanish law requires a series of external facts for a creditor’s request to be accepted. It is very important that creditors initiate their legal claim before insolvency is declared if they want to ensure the collection of their claims.
llucia&AS-LAWYERS have many experiences in debt collection procedures. In adittion, we work for foreign clients who need to claim the amount of their debts in Spain.
So, our firm makes legal services available to claim outstanding debts in Spain. Don´t hesitate and contact us if you need more information about this services.
Debt Collection in Spain – llucia&AS-LAWYERS