Commercial Debt Collection

Debt prevention measures in Spain

A debtor’s default or delay is established if the debtor cannot satisfy his obligation to pay after receiving an overdue notice. At the time of contraction, companies in Spain can take preventive steps to deter defaults from the outset and to improve their legal position in a legal dispute.

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Debt Collection Procedures in France and Spain

Due to historical ties, EU membership, and legislative harmonization trends, French and Spanish laws share commonalities. However, investors face challenges as legal proceedings and terminology differ. In debt collection, French investors need to understand procedures in Spain and potential distinctions from the French system.

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The extrajudicial payments agreement procedure in Spain

In Spain, a natural person debtor requests a bankruptcy mediator from their local notary, while entrepreneurs or legal entities approach the Commercial Registrar at the registered office. The request for an extrajudicial payment agreement includes financial details, creditor lists, current contracts, and anticipated monthly expenses.

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New Debt Settlement Procedure for Entrepreneurs in Spain

The Entrepreneur Support Act (Law 14/2013), effective from September 27, has brought about reforms. Notably, it has increased flexibility in the quorum of financial creditors for court approval of refinancing agreements. Moreover, regulations now govern extrajudicial payment agreements as tools for negotiating with creditors outside the judicial process.

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Indemnity for Recovery Costs

Article 8 of Law 3/2004, of December 29, establishes measures against default in payments in commercial operations.  Similarly, Article 6.1 of the Directive 2011/7/UE of February 16, 2011 states, When …

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Europa

The Procedure of Debt Recovery in the European Union

While there have been reported instances of using the EOPP, the full potential and utility of these new procedures are yet to be realized. They seem to be infrequently employed and not widely known. Only time will reveal whether they will evolve into a cornerstone of the European Union’s civil debt recovery.

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The order for payment and the monitorio procedures in Spain

In dealing with clients who haven’t paid, companies often initiate conflict resolution by sending a formal requirement, ideally using the Burofax service provided by the Spanish post. Spanish judges, like those in many jurisdictions, appreciate efforts to resolve disputes out of court.

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