Debt Collection Process in Spain | Debt Collection Fees in Spain
1. Overview
Whenever you work with firms in Spain, your accounts should be in good order. Understand the party with whom you do business and make arrangements with the right, authorised employees. There are specialised businesses where you are able to get this type of advice.
Be sure you carefully record your claim. The file for a claim should include at least the following files: order form invoice, delivery note, and /order confirmation. Additionally, it’s essential that your general states are given to your customer in the right way, so that these will be relevant in the event that a dispute is there. Additionally make sure that the invoice is drafted in accordance with Spanish legal demands and EU ones. Don’t permit room for argument.
2. Debt Recovery
As soon as your Spanish customer will not pay within the conditions of payment, it is best to contact that customer promptly to enquire about the rationale for the postponement. You can send a demand letter if a short-term answer is unable to be found. You may be sure the business continues to be active, the business relies at that address, and you’ll be able to show that you sent a demand letter in the event the return receipt is signed. Spanish debtors will constantly attempt to procrastinate with disputes or obscure payment propositions. The chance of being paid will become even more distant, in the event you give in to this. Thus, strict follow up is essential: be consistent, clear, and don’t wait too long.
3. Next steps
Is it true that your customer not react to your demand letter, then you’ve got to respond immediately and place your claim for collections. With our own office in Barcelona and a Spanish section your account will be worked efficiently.
Our native speakers in Spain are absolutely knowledgeable about the laws, rules, and culture of the applicable state and have a comprehensive command of your debtor’s language.
4. Managing claims in Spain
There’s a fundamental cultural difference between the EU legal system along with the Spanish.
4.1: Extrajudicial debt retrieval
Once you have given your claim to InterStation, your debtor will receive phone calls and demand letters. We’ll get in touch with you to discuss legal proceedings in the event the debtor will not pay within a set time period.
4.2: Judicial debt retrieval
In Spain, there is an assortment of methods. Which proceedings would be appropriate to your claim is based on size and the kind of claim.
The claim will be mechanically transferred to ordinary court proceedings in the values in the event it is defended afterward.
The “juicio verbal” proceedings: asserts up to EUR 6’000.00. Following the writ, a hearing in the court is planned for all these proceedings, along with a there is a judgment given after a preceeding verbal hearing following the hearing, within six weeks;
The “juicio cambiario” proceedings for cheques and bills of exchange: Spain has special proceedings to handle this, if your claim is founded on an outstanding cheque or bill of exchange.
The lawyer at law as well as local counsel need to reveal evidence of representation with a power of attorney to the Court.
7. Guidance on debt retrieval in Spain
Don’t wait to get in touch with our Spanish Team regarding your debt recovery in Spain, early collections is the key for successfull collections. Use the Contact form and we will get back to you the same day.