What is judicial debt collection?
Judicial debt collection is the collection of a debt through the courts. It is the next step when the out-of-court process—demand letters, telephone contact, and negotiation—has yielded no results.
The judge assesses your claim and issues a judgment. With that judgment, you have an enforceable title and can proceed with enforcement attachment on all of the debtor's assets: bank accounts, real estate, vehicles, shares, and claims against third parties.
When do you start legal debt collection proceedings?
Judicial collection is the right step if the out-of-court process has yielded no results and the debtor persistently refuses to pay. This is also the case if the debtor has presented a substantive defense that is legally insufficient — and you wish to have the court rule.
The longer you wait, the greater the risk that other creditors will beat you to it and there will be nothing left to recover. If you have indications that the debtor threatens to siphon off his assets, you can simultaneously have a provisional attachment placed.
How does the judicial debt collection procedure work?
The procedure follows a fixed order.
First, the summons. A lawyer or authorized representative drafts the summons. A bailiff personally serves the summons to the debtor. It states the claim, the grounds, and when the debtor must appear before the judge. Drafting the summons at MKBjuristen costs €129.
Secondly, the roll call hearing. The debtor is given the opportunity to present a defense. If he does not present a defense,
the judge issues a default judgment in which the plaintiff is almost automatically found to be in the right.
Thirdly, the judgment. The judge delivers a ruling. In the event of a victorious case, the debtor is ordered to pay the principal amount, interest, and legal costs.
Fourthly, execution. If the debtor refuses to pay even after the judgment, we engage a bailiff for executory attachment. The bailiff can seize all of the debtor's assets until the full claim has been settled.
Sub-district court judge or district court?
The choice depends on the amount of the claim.
For claims up to €25,000, you go to the sub-district court. Here you can litigate without a lawyer — MKBjuristen can assist you as your representative. The court fees are lower and the procedure is simpler.
For claims exceeding €25,000, you go to court and are required to engage a lawyer. Exception: in tenancy and employment cases, you may also litigate before the sub-district court for amounts exceeding €25,000.
Honest advice on feasibility
Before we initiate legal proceedings, we honestly assess whether doing so is advisable. Three questions guide this assessment: How strong is your evidence? What are the chances of winning a judgment? And does the debtor have sufficient assets to satisfy your claim in the event of a judgment being won?
If recovery is unlikely, we advise you not to initiate proceedings. This saves you costs and time. A recovery investigation assists with this assessment.
