Debt recovery proceedings in Spain

There are several debt recovery proceedings in Spain. If your company has outstanding debts and your efforts have failed, these are the main measures to be carried out:

1)    Letter of formal notice:

 Once you know that your own efforts will not produce results with your debtor, and you decide to handle this matter through your attorney in Spain, we will issue a letter of formal notice to your debtor.  It is a formal request to pay within a certain date. We state the details of the debt and the legal action which we will prosecute if the payment is not attended.   The “Letter of formal notice” is sent with acknowledge of receipt  and content certification, so that it will serve as proof in court if necessary.

When the debtor receives the letter, and understands that you are taking seriously the matter,  there is a claim at court prepared for him, and there will be legal fees and interests that will increase the amount of the debt, he will  probably reconsider his attitude.

 2)    Negotiating with the debtor:

Before going into a long trial in the Court, it is appropriate to negotiate with the debtor, to find a solution.  Our objective is to recover the debt for our clients with the minimum cost and time.

3)    Feasibility of a lawsuit:

Before filing a suit we study the economic viability, investigating the assets held by the defendant. This way, we will only start a lawsuit if there are assets to recover the debt.

4)    Bringing a claim:

If we consider that it is worth,  we will choose the best proceeding to recover the debt: There are several Court proceedings in Spain:

a)    Proceso monitorio: It is an “Order for payment procedure”. It is quick and effective. It applies to pecuniary claims under 250.000€ with documents serving as evidence of the debt. Once filed, the court gives the debtor 20 days to pay the debt or contest the claim. If the debtor does not object, the court will commence enforcement.  In case that the debtor contests the claim, there will be a cognizance trial.

b)    Juicio verbal and Juicio ordinario:  They are the cognizance trials in Spain. The appropriate trial will depend on the amount claimed. The Juicio verbal is for debts up to 6.000€.  After the written claim and defence,  this proceeding is conducted orally and the judge gives its It is faster than the juicio ordinario.   The Juicio ordinario is slower and has more phases.  After the claim and defence, there will be a hearing called “Audiencia previa” to try to reach an agreement, solve flaws in the process, make complementary pleadings and  requests of evidenciary proceedings.  Some months later, there will be the public oral proceeding, and a judgement of the Court.

This are the main proceedings to recover your debts in Spain.  There are also an specific proceeding  in case that the debt is for unpaid bills or drafts of exchange, cheques or promissory notes called “juicio cambiario”.

If the debtor has gone into bankruptcy, the proceedings to recover the debt will be different: it is called “Concurso de Acreedores”.

And there is also the possibility of claiming for the liability of the managers.

If you need legal advise to recover your debts in Spain, contact us.

Deja una respuesta