What is summary debt collection proceedings?
Summary debt collection proceedings are an expedited judicial procedure that allows you to quickly collect an outstanding debt. Unlike ordinary proceedings—which can take months to more than a year—in summary debt collection proceedings, you typically receive a ruling from the judge within two weeks.
The judgment in summary proceedings is a provisional measure, not a final judgment. However, it is immediately enforceable: you have an enforceable title with which you can immediately have enforcement attachment levied. In practice, main proceedings rarely follow because the debtor pays after the judgment or the parties reach a settlement.
When is summary debt collection proceedings possible?
Summary debt collection proceedings are only possible if three cumulative criteria are met.
First, the claim must be sufficiently plausible. The claim must be undisputed — the debtor
acknowledges the debt but is unable or unwilling to pay — or reasonably indisputable. If there is a serious substantive defense, summary debt collection proceedings are generally not the appropriate route. The judge in preliminary proceedings does not have time for extensive factual investigation.
Secondly, there must be an urgent need. The mere fact that an invoice is outstanding is insufficient. There must be a reason why you cannot wait for a regular procedure. Examples include: your company is at risk of facing financial difficulties due to non-payment, your debtor is at risk of bankruptcy, or the delay is causing disproportionately large damage.
Thirdly, the risk of restitution must be low. If the claim is granted in summary proceedings but you subsequently lose any subsequent proceedings on the merits, you must repay the amount paid. If the judge expects that you will be unable to do so—because your own financial position is precarious—he may dismiss the claim to protect the debtor. This is the risk of restitution, and it is sometimes at odds with the urgent interest.
How does the procedure work?
A lawyer is mandatory for summary debt collection proceedings, except for summary proceedings before the sub-district court.
We engage a specialized lawyer to draft the summons. The bailiff serves the summons on the debtor. There must be at least eight days between the summons and the hearing.
At the hearing, the preliminary relief judge assesses whether the three criteria have been met. If the debtor raises no defense, a default judgment usually follows, in which the claim is awarded. If the debtor raises a defense, the judge assesses whether that defense is strong enough to prevent the claim from being awarded.
After the ruling — usually within two weeks of the hearing — the judgment is immediately enforceable. If the debtor fails to pay, we engage a bailiff for enforcement attachment.
When is summary debt collection proceedings better than full proceedings?
Summary debt collection proceedings are faster and cheaper than full proceedings if your claim is strong, undisputed, and you have a demonstrable urgent interest. You will have an enforceable judgment within two weeks
instead of six to eighteen months.
A full trial is preferable if the claim is contested on the merits, if complex evidence is required, or if there is no urgent need. A rejected summary proceeding costs you time, money, and an order to pay legal costs.
We honestly assess in advance whether your case is suitable for summary debt collection proceedings or whether another route is more sensible.
