General rules for debt collection proceedings
The following article provides information on basic rules for debt collection proceedings, such as the place of debt collection and time limits.
Place of debt collection
- Private individuals are generally to be sued at their place of residence.
- Sole proprietorships are to be operated at the place of residence of the sole proprietor.
- Legal entities (e.g. AG or GmbH) must be operated at their place of business.
The entire debt collection procedure must be carried out at the correct place, which can lead to the fact that in the case of a change of residence, the debt collection must be continued at the new place of residence.
If the debt collection is filed at the wrong place, the debt collection office called will reject the debt collection request. An automatic forwarding to the competent debt collection office does not take place.
Deadlines
The debtor is given a deadline of 20 days to pay the debt.
If the debtor does not acknowledge the debt, he must declare this to the debt collection office within 10 days. This declaration is called a legal proposal.
If the claim has not been paid and the debtor has not made a legal proposal, the creditor can file a so-called continuation request at the earliest 20 days and at the latest one year after the service of the payment order. The continuation request varies depending on whether the debtor is a natural person or a legal entity.
A debtor enjoys a temporary stay during certain grace periods, a so-called debt collection standstill. During this period, no debt collection actions may be taken. If they are nevertheless made, they take effect only after the expiration of the grace period. The closed periods are divided into three categories. These are on the one hand the closed periods (8 p.m. in the evening until the next morning at 7 a.m. as well as on Sundays and public holidays), the debt collection vacations (SchKG 56 item 2) and in the case of legal standstill (SchKG 57-62), probate or emergency moratorium.
The legal standstill can exist for various reasons. The typical case is that the debtor is in military, civil or civil defense service. But also a serious illness or the arrest of a debtor can lead to a legal standstill. Both the debt collection vacations and the legal standstill do not suspend the running of the time limit, but it is extended until the 3rd working day after the end of the debt collection vacations or the legal standstill.
