The court order: costs and financial regulations in the dunning procedure

If a customer does not pay a due receivable, companies will try to collect it through their own dunning or by using a collection agency. However, if all measures by the commercial dunning process are unsuccessful, a legal dunning procedure will commence. The creditor, or a service provider appointed by him, will firstly apply for a court order. But who bears the costs in case of a court order? How high are the costs of a court order? How are the costs of a legal court order calculated?

 

Court order - court costs are due immediately


Costs for the court are due immediately when applying for the court order. If these fees are not paid to the local district court straight away, the application for the court order is ineffective. Therefore, the creditor must initially pay for the procedure. The creditor pays in advance, so to speak. Ultimately, the costs incurred by the court order must however be borne by the debtor and the creditor reimbursed - certainly when the court order is successful, the debtor does not object and the procedure leads to an enforceable title (enforcement order).

 

Court order - costs for the court


The court costs arise from the amount of the principal claim, i.e. the original invoice amount that the creditor could not yet collect. For example, for a receivable of 10,000 euros, the fees for the court order will be approximately 100 euros. The court costs for a court order are set at half of a court fees. The minimum however is 23 Euros, regardless of the amount of the principal claim. If the creditor withdraws his application for issuance of a court order (prematurely), it does not release him from the court costs. These arise regardless of whether the court's legal dunning procedure is completed or not.

 

Court order - reimbursing costs


The creditor must therefore be reimbursed for the costs incurred by the court order. In addition to the court costs, this includes lawyers fees or collection costs if the creditor has appointed a service provider to apply for the court order. These costs directly associated with the court order can be an ancillary claim on the application. Furthermore, the creditor can assert all other claims for damages caused by default. The costs of an out-of-court collection order, dunning costs, default interest and others may be incurred. On the court order, costs of this kind are also listed as ancillary claims and thus asserted in addition to the principal claim.

The total claim therefore arises from the original amount due plus the damages caused by delay and the direct costs of the court order. If the procedure ends with an enforceable title, the debtor will have to bear the full costs.

Thus, court order will incur significant costs for the debtor, which will be avoided if the creditor and debtor reach an agreement in advance. infoscore Forderungsmanagement GmbH considers itself a mediator between the two parties and seeks a pre-trial agreement. This has an advantage for creditors and debtors. Therefore you should not let it come to a legal dunning procedure, as the court order etc. ultimately only incurs more costs for your account.  Please contact inkassoportal.de directly. You can of course also reach us by email using the contact forms, or by phoning the numbers listed on our letters.

 

Court order: costs in case of insolvency


If a legal dunning procedure ends with an enforceable title (enforcement order), there is no guarantee that the creditor will actually receive his claim and all expenses. The debtor may be insolvent and not have assets suitable for compulsory enforcement.  In the case of insolvency, there is still the chance of enforcement, because a title remains valid for 30 years. Should the insolvent debtor become solvent again within this period, the receivable can be recovered with the enforcement order, costs can be reimbursed and the creditor still gets his due. This is more inconvenient for the creditor. Ultimately, a court order /enforcement order incurs costs which he must bear at first. In certain cases, going to court however is the last option to assert his right.