FAQs about the judicial dunning procedure

Last Update:
Related Topics:
  1. Häufige Fragen zum gerichtlichen Mahnverfahren
  2. Mahnbescheid
  3. Vollstreckungsbescheid
  4. Zwangsvollstreckung
  5. Klageverfahren
  6. Insolvenzanmeldung
Table of contents:
  1. What is a judicial dunning procedure?
  2. How does the judicial dunning procedure work?
  3. What happens if the debtor does not pay after the enforcement notice?
  4. What are the costs of a judicial dunning procedure?
  5. What deadlines must the debtor observe?
  6. How can a judicial dunning procedure be avoided?

What is a judicial dunning procedure?

A judicial dunning procedure is a legal process that allows creditors to enforce claims quickly and cost-effectively. It enables creditors to request payment from a debtor through a formal dunning notice.

From the debtor’s perspective, the purpose of the judicial dunning procedure is to clarify the claim and, if necessary, dispute any unjustified demands.

How does the judicial dunning procedure work?

Dunning notice

  • The dunning notice is issued by the competent district court (dunning court) at the debtor’s location.

  • It formally informs the debtor of the claim and sets a deadline to either pay or file an objection.

Enforcement notice

  • If the debtor does not object to the dunning notice within the set deadline, the creditor can request an enforcement notice.

  • The enforcement notice serves as an enforceable title, enabling the creditor to initiate enforcement proceedings.

What happens if the debtor does not pay after the enforcement notice?

Enforcement proceedings

  • If the debtor does not appeal the enforcement notice within the deadline, the creditor can apply for enforcement proceedings.

  • The court may order the seizure and liquidation of the debtor’s assets to satisfy the claim.

Contentious proceedings

  • If the debtor objects to the dunning notice or appeals the enforcement notice, the case transitions to contentious proceedings.

  • The court reviews the dispute and delivers a binding decision.

What are the costs of a judicial dunning procedure?

Costs for the debtor may include:

Court fees

  • The amount depends on the value of the claim and is calculated based on fixed rates outlined in a fee schedule.

Attorney fees

  • If the creditor hires an attorney to initiate the dunning procedure, additional fees apply. These are regulated by the German Attorneys’ Fees Act (RVG) and also depend on the claim value.

Additional costs

  • Enforcement notice fees: Further court fees apply if the creditor requests an enforcement notice.

  • Enforcement costs: If enforcement proceedings are initiated, additional costs may arise, such as fees for bailiffs or asset seizures.

Monitoring these costs is crucial, as they can significantly increase the original claim amount. Timely responses from the debtor can help avoid unnecessary expenses.

What deadlines must the debtor observe?

Several important deadlines in the judicial dunning procedure must be met to avoid legal disadvantages and preserve rights:

Deadlines overview

  1. Payment deadline after receiving the dunning notice:
    The debtor has two weeks from the notice’s delivery to pay or object to the claim.

  2. Objection deadline:
    Within the two-week period, the debtor can file a written objection with the competent dunning court.

  3. Deadline after receiving the enforcement notice:
    If no objection to the dunning notice is filed, the creditor may request an enforcement notice. The debtor then has another two weeks after delivery to file an appeal.

  4. Appeal deadline for the enforcement notice:
    The debtor can appeal the enforcement notice within two weeks of its delivery by submitting a written appeal to the court.

Importance of observing deadlines

  • Avoiding enforcement proceedings: Missing deadlines can lead to the creditor initiating enforcement actions.

  • Legal review: Timely objections or appeals allow the claim’s validity to be reviewed, which is crucial for disputing unjustified claims.

  • Cost reduction: Prompt responses can prevent additional costs from accruing through the judicial dunning procedure and enforcement actions.

How can a judicial dunning procedure be avoided?

To prevent a judicial dunning procedure, several proactive measures can be taken:

  1. Early communication: Contact the creditor as soon as it becomes clear that payment cannot be made on time.

  2. Payment arrangements: Negotiate a payment plan or deferral with the creditor.

  3. Claim review: Verify the claim carefully. Inform the creditor immediately if the claim is unclear or unjustified to resolve misunderstandings.

  4. Legal advice: Seek advice from an attorney if unsure about the situation. They can assist with communication and propose appropriate solutions.

  5. Financial analysis: Assess your financial situation thoroughly to create realistic payment plans to present to the creditor.

Advantages of an early resolution

  • Cost savings: Avoiding a judicial dunning procedure eliminates additional costs.

  • Time efficiency: An amicable resolution is often faster than a lengthy legal process.

  • Preserving relationships: A peaceful resolution helps maintain business relationships and prevents future conflicts.

By taking these steps, the risk of a judicial dunning procedure can be significantly reduced. Open communication and early resolution of payment issues are key to avoiding legal disputes.