Debt Recovery Spain

We live in a globalized world. Each day our companies expand their boundaries and activities for their goal is to reach the international market and increase their clients and income. Of course despite the many benefits of entering in the international market, there is one inevitable consequence that may arise in some point of your commercial activity: clients who try to avoid or delay payment.

You as entrepreneur may find this situation difficult and stressing for the debtor probably will make up false excuses or arguments to keep you in a long and never-ending waiting for your money. Whether it is a company or a person, our attorneys completely understand your situation and are ready to represent your interests. 

With the help of our Law Firm, you might be able to sort things out before move ahead into long Court proceedings. Prior conversations between you and your client may be appropriate but if these have failed you should go to the next step with a lawyer’s written document explaining the future consequences of not completing payment. This may help you to avoid false arguments from your debtor such as bad financial situations or void promises of future payments.

Remember that or team has many years dealing with debtors. Just by letting your debtor know that you are being guided by a Law Firm you may get efficient results. However, if no positive answer is received, we will put all our efforts to use as many legal resources as needed to recover the money that is rightfully yours. From County Court claims to bankruptcy proceedings, we have the necessary experience and tools to recover your money. 

Extrajudicial claim through a Letter of Demand.

Our first step will be to try settling an agreement out of court. Our attorney will draft a Letter of Demand where we are formally requesting your debtor to pay you within a certain time frame. This document outlines the total amount of the debt, and the legal consequences of not paying the money, including all the legal fees and interests that will be added to the debt if a court proceeding is needed. A Letter of Demand may serve a proof of good faith before the judge.

Court-ordered collections

If the Letter of Demand has been dismissed by the debtor, then we will file the case in Court. There are different legal actions that our attorney may carry out:

  • Proceso Monitorio

This action is probably the fastest. It can be applied only when the debt is overdue. The debtor is notified of 2 options: make payment in 20 days or appeal. In the absence of such appeal, the resolution will be executed and the enforcement will be valid for 5 years.

  • Juicio Verbal

It is meant for debts up to 6,000€ and you and the debtor are called for a hearing. The judge renders judgment based on your oral statements.

  • Juicio Ordinario

It is meant for debts over 6,000€. It is a long proceeding where you are called for preliminary trial in order to present further allegations or report irregularities. There might be many hearings before the judge renders judgment.

  • Juicio Cambiario

Spanish Law foresees specific proceeding when your claim is based on unpaid bills or promissory notes. In this trial, a court orders payment within 10 days and states that if no payment is done, a preventive embargo over debtor’s properties will take place.

  • Request bankruptcy process

If a judge finds that the debtor is unable to pay you, an insolvency proceeding (Concurso de acreedores) is settled. When a “Concurso Voluntario” is placed, it is the debtor who must arrange along with the court about how payment will be fulfilled. In this case, the court must help you and the debtor to restructure the debt. Bankruptcy proceedings can be settled at the request of any of the parties.

 

Contact our Law Firm for we have experience getting the best and most competitive terms for you in case you initiate a debt recovery proceeding in Spain.