Our mission: provide to our foreign clients a law firm service exclusively dedicated to their rights and recoveries. We want to collect their unpaid accounts in Spain quickly, using all the Spanish Debt Recovery Laws on their behalf.
Place a FileAccounts Receivable Spain works with a dedicated staff collaborating with all debtors to facilitate a convenient claims process. It is always our intention to operate towards a successful debt relief through payment plans, mediation and review of information related to the debtor's amount owed. All our operations are in-house, and debtors are approached by our specialists via telephone interaction as well as written mail delivery.
we use the documents provided by our client. Our in-house team of lawyers conducts any debtor investigations. Our in-house team of lawyers conducts any debtor investigations.
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1.2 Use Local Spanish Debt Collectors
If we are having issues recovering a debt, we may hire a lawyer in person to contact the debtor. This meeting is aimed at learning more about the economic situation and creditworthiness of the debtor. Our field agent lawyers hold us up-to-date on any changes and are able to obtain payments from the debtor for use in the unpaid balance of the debt. If this phase fails, when deciding on the next course of action, we will communicate with the agents and our legal team.
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1.3 About Interest in Debt Collection Accounts
If mentionned on the contract by devtor and creditor our Spanish Debt Collection Agency will add those interests to the claimed balance. Our strategy is to comply to any interest requirements set out in the original debtor-creditor agreement. If such requirements do not apply, we will give an interest rate based on the Spanish National Bank's fixed rate.
This interest is regarded as a negotiating point in Spain. Interest can be relieved to secure payment of the balance of the debt.
1.4 Debt collection costs in Spain
1.5 Debt Prescription in Spain
Under the following conditions a prescription period may be suspended:
This is regarded as the debtor's fully underwritten benefit. A court can not set it up or assess it.
1.6 Most Common Debt Collection Payment Methods in Spain
Debt payments are made via wire transfer or bank cheques. There is in some cases possbile to set direct debits.
1.7 Company Types in Spain
For both companies, the shareholders’ assets are not impacted by the company’s debts. It is necessary for the company to prove that bad financial practices has been followed in front of a judge when debts are being pursued.
1.8 Business Intelligence in Spain
Our Spanish Debt Collection Agency has access to the information entered in the company register database in Spain. This information includes financial reports and risk assessments. Along with information we obtained from our customers, these reports provide a key next step in debtor pursuit and help identify the best approach.
This  database data facilitates us in finding those debtors still involved in business and trading. If our consultants decide to file a lawsuit, we will send a local field representative to visit the firm and find out more information on its finances and its justifications for failure to return a payment.
In Spain, private investigators are not used to obtain this data, as business information is available at no cost to our personnel or customers using several other networks. If we are involved in legal proceedings, it is possible for us to use the Court's own agencies and sources of information. A private researcher would certainly be more efficient than these sources.
2.1 Retention of Title in Spain
Throughout Spain, Title Retention is usual but frequently needs to be brought to Court. In addition, businesses must show that they own goods for which the borrower has still not paid.
This frequently begins when the Court tries to trace the goods and the debtor's location. It is the mission of accounts receivable to recover those products if the Court considers that the title retention regulations cover them.
2.2 Safeguarding Measures During Collecting Debts in Spain
The purpose of our debt collection efforts is to have the debtor accepts the existence of his liability  and get a signed agreement confirming the same. Such document shall not be confirmed by a notary, but may be legally binding in any Court claim, given the signature of the debtor is on it. In order to guarantee a possible payment, the debtor able to add any of his assets to the agreement. Contractual assignment of debts or assets is required while mortgage securitization requires notarial confirmation.
2.3 Debt Collection Legal Procedures in Spain
Citizen-State ties are regulated by public law in Spain, while civil law refers to company-specific relations. Legal processes against a debtor may be launched without warning, but this is not usually done as legal proceedings are expensive and slow in Spain, even in the case of conflicts between the creditor and the debtor. There is therefore a need to always pursue amicable collections before Court proceedings.
The case will be heard at the Court of First Instance throughout the first phase of the judicial process. This is the point in which a statement on the debt will be made to clear the way for a higher court of appeal. It is recognized as the Regional Court in Spain, and the debtor's last known address or corporate offices will be sent to the regional court.
The Court of the Third Instance shall be given all claims that do not meet the criteria of the Regional Court. Claims which do not fulfill the requirements of this Court will be completely dismissed. In order to sue the debtor, taxes must be paid during the procedure. This quantity depends on the amount of debt that is currently outstanding.
2.4 Required documents
Our Spanish Debt Collection Lawyer will need the following documents in order to launch the legal debt collection process:
1- Original of signed contract or certified copy of it
2- Copy of claimed invoices
3- Copy of statements, including payments and credits toward the debt(s)
If a lawsuit against the debtor is submitted, the following documents shall be added:
2.5 Legal Procedure in Spain for Collecting a Debt
The legal procedure for dunning pertains only to monetary debts of less than  250,000.00 euros and only where this debt is past due and payable to the creditor right away. The Court of First Instance is reponsible for those cases. The debt is not questioned during legal dunning, and only the court has to state the right of the creditor to the payment.
The tribunal will request the debtor to pay by official notice which will include payments of all interest or fees. If the debtor has any reason to object, legal action will begin right away. All future prosecutions shall be brought before the Court of First Instance but this Court will not determine the validity of the debt. The claim will be referred to the Court of Second Instance for this opinion.
2.9 About the Lawsuit
Court action begins after the debtor is announced solvent enough to pay the balance of the debt completely, when amicable debt collection does not solve the issue. A document is prepared and circulated before the operation. Until the judge has gathered sufficient proof for a trial the creditor and debtor may share their views via mail with the Court. A court hearing will be established at that time and both parties will be required to attend the hearing.
The judge shall set a date for delivering the judgment after the hearing. The Court where the trial is held must notify all parties of the result. You can execute the judgment straight away.
A decision may be contested to pass the case to the second instance court. A further appeal to the Court is feasible, although this appeal will only serve to establish the proper application of laws and statutes.
Our agency employs local Spanish debt recovery attorneys to reduce dramatically the expense of the creditor when suing a debtor. The expenses incurred during the legal stage rely heavily on the debt balance. Cost is based on a percentage system. During the legal process the charges involved include legal costs, legal fees, report fees and other costs. Our Debt Collection Agency in Spain will provide you a calculation on a case-by-case basis as it is difficult to determine the exact costs of a lawsuit.
3.1 How Long does it Take to Recover a Debt in Spain?
As for many European countries a decision may be issued by a judge, from three months to many years, based on the specificity, size and decision of the case.
3.2 Costs and Interests During the Legal phase
The expenses associated with the prosecution of a debtor are to be included in the final judgement by the judge and considered as payable by debtor. It covers tax, paying fines, court expenses and penalty fees. The Spanish Civil Code stipulates that the party who loses must bear the full expense of a legal procedure.
Which can, however, be overridden by the Judge if the judge determines that a part of the claimant expenses incurred during legal proceedings should not be the responsibility of the debtor. The parties are in charge of their own expenses in the event of a settlement.
The creditors may enforce the debts by blocking the debtor's bank account or by retaining their tax  or insurance claims In addition, the value of the balance owing may be maintained by company or corporation partners and wages can be fully or partially obtained to implement the decision. All these interventions are very efficient and they are recognised to trigger debtors to enter into payment arrangements or to comply fully with the creditor's duties. In order to minimize expenses, creditors can potentially apply only part of the judgment.
4.1 Provisional Enforcement
Provision enforcement is the option to enforce a judgment even while the debtor is disputing the judgment in court. This  action must be requested by filing a writ with the Court that issued the original verdict.
4.2 Enforcement of a definitive judgment in Spain
The debtor will have 20 days to pay the amount or face the prosecution proceedings once the verdict is explicitly declared. The creditor may demand that the judgment be enforced by the courts after 20 days have passed.
The execution is carried out through the seizure of debtor property up to and including the amount of debt owed to the creditor The address of the debtor, unless specified, is required by the Court to check via bank records, company records and public organizational papers. Assets are subsequently investigated and the proceeds are given to the creditor as interest and judgment satisfaction. The debtor shall be responsible for the cost of enforcement.
Execution time frame of the verdict is difficult to estimate, it varies widely on the basis of the debtor's location and the valuation of its property.
4.3 Insolvency Proceedings in Spain
Abbreviated, ordinary and necessary insolvency in Spain are all authorized and is seen as a collective enforcement of amounts owed to the creditors of a corporation. All individual enforcements against the debtor will be suspended at the beginning of an insolvency procedure, which shall not be suspended before the insolvency procedure is concluded.
The insolvency purpose in Spain is to assess the value of the assets of a corporation, to repossess these assets and to return the value as a dividend payment to the creditors. The aim of bankruptcy is to recover a debtor's enforceable revenue after they have failed.
Insolvency processes occur when the first-instance insolvency petition has been lodged either with the debtor or creditor. The accounts of the debtor will then be analysed to assess whether or not their claim to insolvency is factual. The court nominates a bankruptcy trustee if it does. To a certain degree, this committee performs the process and tests whether outcomes have been achieved. The following participants are included:
The insolvency as a whole is released in the Official State Gazette of Spain. The release date will begin with a 30-day period when creditors will file claims against the debtor requesting a dividend payment from the restructured estate. The bankruptcy trustee shall review and determine whether to acknowledge or dismiss all claims. For secondary consideration, denied claims may be re-filed once.
The credits are shown a plan which includes the size and the right to approve or dismiss the dividend issued from the company's assets on a multi-regular basis. The court must approve the proposal with 50 percent consent. Without such an arrangement, each creditor shall be paid equally.
4.4 Documentation required to lodge an insolvency claim in Spain
– Original Power of Attorney
– Copies of invoices
– Copies of account statements
– Original contract
– Copies of orders and confirmations
– Copies of conditions of sales
– Copies of correspondence related to the claim
Insolvency in Spain takes an average of 2 to 5 years to complete. The insolvency claims must be lodged in the Spanish Official State Gazette within 15 to 30 days from the date of publication.
4.5 Arbitration and Mediation in Spain
Creditors and debtors who decide to try an amicable debt settlement will have access to arbitration and mediation. It is typically much faster and cheaper than a conventional legal procedure but arbitration or mediation parties have no means of appealing the result.
The hearings are held by the Chamber of Commerce in Spain and other outside entities and are supervised by third-party experts, whose methodology and results is impartial.
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How long before a debt is written off in Spain
