Enforceable title

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Related Topics:
  1. Verjährung
  2. Forderung
  3. Vollstreckbarer Titel
  4. Schuldner
  5. Gläubiger
Table of contents:
  1. What is an enforceable title?
  2. What are the requirements for an enforceable title?
  3. Types of enforceable titles
  4. What to do after receiving an enforceable title?

What is an enforceable title?

An enforceable title is a document that serves as the legal basis for enforcement proceedings. It gives the creditor the right to forcibly collect their claim, for example, through garnishment. Such a title often arises from a court ruling or an enforcement order and ensures that the creditor's claim is legally binding.

What are the requirements for an enforceable title?

Certain legal requirements must be met for a title to be enforceable. Only when these conditions are fulfilled can the creditor forcibly collect their claim:

  • Legally binding: A title must be legally binding. This means that the court ruling or the order is final, and no further appeals or objections can be filed. Once all deadlines have passed, the title is considered legally binding.

  • Delivery to the debtor: The title must be officially delivered to the debtor. This ensures that the debtor is aware of the claim against them. Usually, this happens through a bailiff or by mail.

  • Enforcement clause: The title must include an enforcement clause. This clause confirms that the ruling or the order is enforceable. It is issued by a court or an authority and added to the document.

  • Delivery of the enforcement clause: The enforcement clause must also be delivered to the debtor, ensuring that the debtor knows the creditor can soon take action to enforce the claim.

  • Clear claim: The claim outlined in the title must be precisely defined and undisputed. It cannot depend on further conditions, such as waiting for a certain event to occur before enforcement can begin.

These requirements must all be met before enforcement proceedings can be initiated.

Types of enforceable titles

There are various types of titles that can serve as the basis for enforcement proceedings. Here are the most common examples:

  • Court judgment: A court judgment is one of the most common enforceable titles. It is issued after a trial when a judge rules that the debtor owes the creditor a specific amount.

  • Enforcement order: An enforcement order is issued in a simplified process without a court hearing, known as the dunning procedure. The creditor can apply for it if the debtor does not respond to a reminder. It is just as enforceable as a judgment.

  • Settlement: If the creditor and debtor agree on a payment in or out of court, a settlement is made. This settlement can also be enforceable if it is officially recorded and recognized by both parties.

  • Cost order: In some cases, a court decides on the amount of legal costs that the losing party must pay. This decision can also serve as an enforceable title.

  • Notarial deed: A notarial deed can also be an enforceable title if the debtor agrees to the payment in the document and explicitly acknowledges its immediate enforceability. This type of title is often used for larger loans.

  • Arbitration award: An arbitration award made by a private arbitration court can also be enforceable if it is recognized by a state court.

These different types of titles allow the creditor to enforce their claim once the necessary conditions are met.

What to do after receiving an enforceable title?

Once you, as the creditor, have an enforceable title, you can initiate enforcement proceedings to collect your claim. Here's an overview of the steps:

  • Apply for enforcement: You file an application for enforcement with the competent enforcement court. The court then appoints a bailiff or issues a garnishment and transfer order.

  • Carrying out the enforcement: The bailiff or the debtor’s bank takes measures to collect the claim. These may include:

  • Wage garnishment: A portion of the debtor’s income is transferred directly from their employer to you.

  • Account garnishment: The debtor's bank account is frozen, and any available funds are used to settle the debt.

  • Asset garnishment: The debtor's valuable possessions or assets are seized and, if necessary, auctioned.

  • Real estate foreclosure: If the debtor owns property, it can be auctioned to satisfy the claim.

  • Filing for bankruptcy: If the debtor is insolvent and enforcement measures are unsuccessful, you can apply for bankruptcy proceedings to be opened.