Claiming a debt through the courts

Most people find the process of debt collection through legal channels complicated and costly. Thus, people operating on a tight budget fear claiming non-payment of their defaults, mainly because they cannot afford the high fees that most law firms or debt collection specialists charge for their services. While legal advice can be expensive, this does not outweigh the benefits of trying to obtain court judgement. Taking legal action against debtors is a very effective way of recovering debts.

When deciding to take legal action, it is essential to consider a number of issues related to the process. Below, we identify the various aspects that should be taken into account before claiming a debt through the courts, for example, in order to find the best legal channels for claiming a mortgage, as well as other essential information you need to know.

Things to consider before claiming a debt through the courts

Understanding the factors that are vital to reclaiming unpaid debts is essential, so it is easier to make a decision on how to resolve the problem. Before you begin the process of claiming, you must first understand what is involved and then determine whether you want to take your complaints to court or, if not, consider other methods of recovery. In order to obtain the necessary information, you can use a law firm that specialises in complaints.

What should be considered when making a debt claim?

Cost-benefit analysis

The first thing to do is to have a cost analysis of the potential demand. That is, we must be aware of and weigh the potential risks and reward of your decision. If we find that the reward outweighs the risks, then filing a lawsuit is the most appropriate approach.

Chance of winning

Consider in an objective perspective all the factors surrounding your case. Then, determine whether there is any chance of winning the claim. In this case, identify evidence and possible witnesses to support your claim. For example, consider taking advantage of the formulation of a legally binding contract and documents showing that you meet the requirements of the contract. If you do not have viable and sufficient evidence, you may never win your case. The approach you use to claim a debt is no guarantee that you will be victorious. Another great viable alternative that can arise is to have mediation.

Timing and financing of demand

Usually, the lawsuit process takes a long time before the court makes a final decision. At this point, it is time to deeply consider delegating the case to a specialist lawyer who will handle the entire court procedure, allowing you to focus on your day-to-day tasks or on your work. In addition to the time, we must assess the economic cost: investigation costs, filing fees, etc. You must estimate the total costs with your lawyer, in a transparent manner. You will be able to see that it is money well spent.

Legal channels for claiming a debt

Once you have all the factors at your fingertips, you should look for a reputable law firm. Choosing the right legal channel to claim a debt is essential. You can find a team of professionals who will help you to claim an unpaid debt efficiently and with maximum solvency in our law firms in Madrid. Thus, at G. Elias y Munoz Abogados, you will obtain excellent management of your claims for invoices and non-payments in Madrid. They have qualified and well-trained claims lawyers who can handle any debt claim case.
One of our lawyers becomes your legal representative, responsible for your advice. He will accompany you through all the necessary steps to obtain a court judgement.

The general steps involved in debt recovery:

Payment procedure for debt collection usually starts when the judge passes a judgment. Of course, not alone, but with the help of your lawyer.

The payment order procedure is as follows:

- Application for a payment order: your lawyer writes and sends an application for a payment order to the court. The form must have documentary evidence that there is an unpaid bill.

- The court sends the application for payment to the defaulter: after approval of the application for a payment order, the court sends it to the debtor. The debtor must respond within 20 working days. Within these days, the defaulter can pay the claim or object to the application if he does not agree with the demand.

- Issuance of enforceable title to the plaintiff: in the event that the debtor does not respond to the claim within twenty business days, the court issues an enforceable title. And this will be in favour of the plaintiff for the amount of the payment requested.

- Verbal Trial: when the debtor disputes the claim made by the creditor, the procedure is sent to a regular expedited procedure (verbal trial). Or, a standard ordinary procedure (juicio ordinario). However, this depends on the amount claimed. At this stage, a claim is again submitted to the court with all supporting documents. The court can then evaluate the claims and determine whether to issue the requested legal proceedings.

Declaratory proceedings

A declaratory order is obtained through an appropriate court procedure, and may be ordinary or special. But this will depend on whether it concerns the general case or a specific aspect. Ordinary declaratory proceedings include both the ordinary hearing and the oral hearing.
For special declaratory proceedings, the following steps should be considered:

• Regulation and scope of application.
• Commencement of proceedings.
• Appearance, defence and counterclaim
• Preliminary hearing
• Trial and evidence
• Final proceedings and judgement
• Costs of the process.

Exchange procedure

After following the correct legal procedures and winning the case, the difficult part is the actual collection of unpaid debts. Especially since the debtor had previously failed to pay the debts. Some come to court already ready to pay the claim immediately, this is the most favourable situation.

What if that is the opposite case? You can consider the following steps:

• Acquisition of a judicial execution: the court writes an order directing the local police to assist you in collecting the overdue bill.
• Initiate direct contact to collect a debt.
• Refer the debtor to a collection centre.

In order to collect a debt through the courts, you need to be prepared from the very beginning, from the time the claim is filed to the time of collection and exchange. With all the above details on how to collect a debt through the courts, you have substantial and relevant information but not the legal advice for a specific claim. In our law firm G. Elias y Muñoz Abogados you will find professional lawyers and specialists in debt claims that will help you to claim the payment of unpaid debts and any debt with rigour and reliability.