Debt Collection Agencies in Spain
Updated on Sunday 02nd June 2019
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Debt collection agencies in Spain specialize in recovering due debts from Spanish clients or individuals with whom their client entered into a business relationship at one point.
In some cases, companies in Spain can go through a lengthier period before paying the due invoices. This difference in payment may seem more obvious to foreign investors who are accustomed to a different payment speed. However, when this practice results in frequent overdue payments or debts that have accumulated for a period that can no longer be prolonged, then the services of a debt collection agency in Spain will be most welcomed.
The debt collection process in Spain includes two stages, at it is customary in many other countries. The extrajudicial debt collection phase is typically handled in all cases, as there is a tendency for avoiding the commencement of litigation, whenever possible. The second stage, when required, is the judicial debt collection, which takes place with a debt collection lawyer in Spain, most of the time working for the same agency.
A debt collection agency in Spain will, of course, handle cases related to debt collection, however, additional services can be provided. The variety of services for clients can include the following:
- Debt collection: the main activity of the agency, focused on extrajudicial and juridical debt collection.
- Debt management: this can include solutions for tracking debtors and maintaining an updated database.
- Seizure of assets: the enforcement proceedings are handled by a bailiff, however, an agent can also provide services during this time.
- Additional consulting: the agency can provide consulting on debt management, as needed and in the context of an implemented debt management solution.
How do agencies handle the extrajudicial debt collection?
Debt collection agencies in Spain will start with the extrajudicial debt collection phase in almost all cases. This involves a series of steps meant to contact the debtor and negotiate a payment scheme.
In most cases, the pre-litigation attempts to collect the due debts will include:
- Contacting the debtors: the first step is to attempt to contact the debtor directly and discuss payment.
- Sending the demand letter: a formal demand letter can be sent in order to express the intention to collect the debt via the agency.
- Discuss a payment arrangement: when the debtor responds to the demand letter, the agency can start drawing up a payment arrangement that would be beneficial.
- Inform of the legal action: this is the final step when the debtor does not cooperate or does not agree upon the payment schedule.
- File for bankruptcy: in some cases, the creditor can file for bankruptcy and a debt collection agency will be well aware of the process and this can be a useful step.
Our agents who specialize in debt collection in Spain offer these services and can provide interested individuals with more information about the recovery process, costs and duration according to the case.
How can a debt collection lawyer in Spain help recover the due debts?
The specialized assistance received from a debt collection lawyer in Spain is important when the creditor decides to commence litigation. A lawyer can assist the creditor from the moment he files his claim and throughout the entire process, ending with the seizure of assets. When an order for payment proceedings is issued by a Spanish Court, the debtor will have a limited amount of time to respond. If he decides to defend his case, then the case is taken to a court of ordinary civil proceedings and the help of a lawyer will be essential during this phase. The creditor can start his recovery when the court order is issued in his favor and it is enforced.
A foreign entrepreneur who is owed a debt by a Spanish individual or business can collect the payment by means of a European Order for Payment Proceedings. This is usually a standard form that is filled in by the creditor and submitted to Court. He then receives the Order for Payment and can use this order to commence the enforcement proceedings in Spain. Because Spain is part of the EU, a European Court order will be implemented in the country without any special legislation and the process will take place as if a Spanish Court would have issued the order. Our debt collection lawyers in Spain can help you with more information.
Contact us for more information on how a debt collection agency in Spain can be of services for recovering outstanding debts. Your business will benefit from working with a team of specialists for the recovery of payments and ensuring that your business has the funds to conduct its activities.