What is an enforcement order?

Creditors and debtors are equally concerned with the question, "what is an enforcement order?" For both sides, a final enforcement order has important effects. Suppliers, craftsmen and companies often see the enforcement order as the last option to have outstanding receivables settled. Companies of all industries are dependent on payment for their services, because only then they are able to sustain their business operations in the long term. The answer to the question "what is an enforcement order?" is different from the debtor's point of view. A legally binding enforcement order has the effect of a distraint title, which allows the immediate compulsory enforcement of the debtor's assets. The title suspends the statute of limitations and thus secures the existing receivables in the long term. inkassoportal.de offers information on the legal dunning procedure and means of remedy.


What is an enforcement order? - the application procedure

To obtain an enforcement order, creditors must first apply for a court order. This suspends the statute of limitations of the receivable and results in the initiation of the legal dunning procedure. After delivery of the default notice, the debtor, as the defendant, has the opportunity to object to the receivable up until the issuance of the enforcement order. If the debtor does not object to the court order within two weeks of its delivery, the creditor may apply for an enforcement order with the debt collection court. The deadline for requesting an enforcement order is six months after the default notice has been delivered.


What is an enforcement order? - the implementation

The enforcement order has the same effect as a judgement by default. For the creditor, this means that compulsory enforcement against the debtor can be initiated immediately. Immediate enforceability is independent of the legal validity of the enforcement order. The creditor has the option to have the enforcement order sent to the debtor by post or in person via a bailiff. If the creditor decides for it to be delivered by a bailiff, the bailiff can already implement the enforcement upon delivery of the enforcement order.


What is an enforcement order? - effect on credit rating


Debtors who receive an enforcement order should anticipate that it will have an adverse effect on their credit rating if the enforcement order is reported to a credit reference agency.


What is an enforcement order? - remedy and effectiveness

The debtor can object to the issuance of an enforcement order within two weeks from the date of delivery.If the receivable is not lawful from the debtor's point of view, an objection is advisable. The legality of the receivable is then usually clarified in civil proceedings. If the debtor has valid arguments against the legality of a receivable, it is recommended to object to the default notice. With this, debtors can prevent the issuance of an enforcement order.