Debt collection can often be a complicated process, so acting quickly to recover your funds is of the utmost importance. Collecting overdue debts in Spain is something that Lusa Legal has ample experience in, and we are confident that our expertise will ensure success in a full monetary recovery.
Attributes of the Debt
In order for a debt to be considered valid, there are a few characteristics that it must contain.
- It must be a specific amount.
- It must be a monetary debt owing and not another form of asset or property.
- The deadline for the final payment must have passed.
- It must be recoverable.
- It must be under €250,000 to be claimed through the Monitorio process of debt collection.
- There must be proper evidence and documentation to prove that there is a debt owing.
Prior to being able to proceed with collecting overdue debts in Barcelona or in other Spanish region, some specific documentation must be obtained:
- A contract between the two parties.
- Invoices, bills or orders that prove the amount of the debt owing.
- Proof through a signature or other means that the debtor was aware of the monies owed.
Steps to Recovering the Debt in Spain
Once the proper documentation has been collected, the procedure for debt collection in Spain can begin.
- Step 1: A claim is submitted against the debtor to the courts.
- Step 2: The debtor can either voluntarily pay the claim within twenty days time from submission, or they can choose to dispute it.
- Step 3: If the claim has been disputed in writing, then either a verbal or ordinary trial will take place. A verbal trial will be chosen for claims under €6,000 and an ordinary trial will begin for claims over this amount.
- Step 4: If the debtor fails to respond to the claim, the process will move ahead to the execution stage.
- Step 5: During the execution stage, the judge will review the case and all documentation and will reply with their verdict. Once the judgement has been made, it is final and fully enforceable. The debtor must make payment or their assets will be seized in order to pay the debt owing.
Is there a time limit for debt recovery in Spain?
If someone owes you money, it is imperative to act as quickly as possible to recover these funds. If the debtor becomes bankrupt or moves to another country, solving this issue may become a complicated problem. The type and amount of debt owed combined with the specific region of Spain will determine the time limit to claim your debts. The most common time limit is fifteen years, however it could be much less depending upon the city and its regional laws. Keep in mind that the time limit begins at the time of the transaction and not the time that payment is due.
If you are in need of debt recovery in Barcelona or in other Spanish region, Lusa Legal is prepared to help. When it comes to knowing all the legalities of debt collection, we pride ourselves on being experts in this area. Whether you have debts to collect or someone is wrongfully accusing you of not paying what you owe, our team of professionals are here to assist. Lusa Legal experts are ready to help you: +34 605 33 60 90.