Debt Collection Germany: How Foreign Creditors Recover Unpaid Debts From German Companies

This guide follows each step from the foreign supplier's side, with deadlines, court fees and the post-Brexit position. If you already need advice, the Corporate INTL directory lists dispute resolution and litigation lawyers in Germany and our wider directory of advisers in Germany.

Debt collection Germany: the short answer

You collect a debt from a German company by fixing the date of default, sending a written demand, applying for a court payment order if the money does not arrive, and enforcing the resulting title through a German bailiff or the enforcement court.

Stage	Who or where	Statutory rule or deadline
Debtor falls into default (Verzug)	Automatic, or by a reminder (Mahnung)	At the latest 30 days after the due date and receipt of the invoice (s286(3) BGB)
Default interest and flat fee	Claimed in the demand	Base rate plus 9 points for B2B debts, plus €40 (s288 BGB)
Application for a payment order	Amtsgericht Wedding for applicants based abroad	Exclusive jurisdiction (s689(2) ZPO)
Debtor's objection (Widerspruch)	Same court	Two weeks from service (s692 ZPO)
Enforcement order (Vollstreckungsbescheid)	On the creditor's application	Within six months of service (s701 ZPO)
Enforcement	Gerichtsvollzieher (bailiff) or enforcement court	Title, enforcement clause and service (ss724, 750 ZPO)

The UK equivalent, from reminder letter to county court claim, is covered in our guide on what to do when a customer is not paying an invoice.

Before you start: check the debtor, the contract and the limitation date

Before spending money on debt collection in Germany, confirm that the company exists, is solvent, and that your claim is not about to become time-barred.

• Identify the right legal entity. Match the name on your contract and invoices to the commercial register (Handelsregister) entry, including the legal form and registered seat. A title against the wrong group company is worthless; our guide on how companies are set up in Germany explains the register and the main legal forms.
• Check for insolvency. Insolvency courts publish their notices centrally online under s9 of the Insolvency Code (InsO), on the portal insolvenzbekanntmachungen.de. Search the debtor before filing anything.
• Read the contract. An English jurisdiction clause or an arbitration clause changes the route; our comparison of arbitration and litigation sets out the trade-offs, and our guide on whether arbitration awards can be enforced internationally covers awards. The default and interest rules below apply where German law governs the contract.
• Diary the limitation date. Under s195 of the German Civil Code (BGB) the regular period is three years, running under s199(1) from the end of the year in which the claim arose and the creditor knew the facts and the debtor's identity. An invoice that fell due in 2023 is therefore time-barred at the end of 31 December 2026.

Limitation is suspended by filing a claim or by service of a German payment order or a European Order for Payment (s204(1) BGB). Under s167 of the Code of Civil Procedure (ZPO) the suspension dates back to receipt of the application if service follows promptly, so a payment order filed in late December can still save a 2023 invoice.

Default, interest and the letter before action

A German business debtor is in default either from a reminder sent after the due date or, at the latest, 30 days after the due date and receipt of the invoice, and from then on owes statutory interest.

Under s286(1) BGB a debtor who does not pay after a reminder (Mahnung) sent once the debt is due is in default from that reminder. No reminder is needed where payment was due on a calendar date or the debtor seriously and finally refuses to pay (s286(2)). Under s286(3) a debtor is in default at the latest 30 days after the due date and receipt of an invoice; business debtors need no warning on the invoice, consumers do.

Once in default, s288 BGB sets the interest:

• Business to business: nine percentage points above the base rate (s288(2)).
• Consumer debts: five percentage points above the base rate (s288(1)).
• Flat fee: €40 per business payment claim in default, including instalments (s288(5)), credited against later legal costs.
• Higher contractual rates remain claimable (s288(3)), and an advance clause excluding default interest is void (s288(6)).

The Deutsche Bundesbank publishes the base rate: 1.27% from 1 January 2026 and 1.52% since 1 July 2026, giving a B2B rate of 10.52% a year until the next change on 1 January 2027. On a €50,000 invoice that is about €438 a month. Under s247 BGB the base rate moves by the change in the European Central Bank's main refinancing rate, so decisions such as the cut in our report on the ECB taking its deposit rate to 2% feed through to German default interest.

The letter before action and collection agencies

A final written demand is not a legal precondition to a German court claim, but it fixes default where s286(3) has not already done so and often produces payment.

A good demand, ideally in German, names the debtor exactly as registered, lists each invoice with its due date, states the interest at 9 points above the base rate and the €40 fee per claim, sets a short final deadline and says court proceedings will follow. Keep proof of dispatch and of receipt of the invoices, since s286(3) runs from receipt.

Many foreign suppliers instruct a German collection agency (Inkasso) or a German lawyer at this point. Reasonable costs of chasing a debtor already in default can form part of the damage caused by the delay, and s288(5) BGB credits the €40 fee against them. Before the demand goes out, check whether the debtor has a genuine complaint: if it has rejected the goods or claimed a set-off, prepare for an ordinary claim rather than a payment order.

The German court dunning procedure (Mahnverfahren) step by step

The Mahnverfahren is a largely automated court procedure that turns an undisputed money claim into an enforceable title without a hearing and without the court examining whether the claim is justified.

Under s688 ZPO it covers any claim to a specific sum in euros, but not one that depends on a counter-performance not yet rendered, such as goods not yet delivered. The steps:

1. Choose the court. Where the applicant has no general place of jurisdiction in Germany, the Amtsgericht Wedding in Berlin is exclusively competent (s689(2) ZPO). The German dunning courts' portal confirms that applicants based outside Germany must apply to Wedding, which also handles European orders for payment.
2. Prepare the application. Under s690 ZPO it names the parties, states principal and ancillary amounts separately, declares that the claim does not depend on an outstanding counter-performance, and names the court for any contested proceedings. Interest can be stated as calculated amounts or running interest.
3. File it. The courts' online form, online-mahnantrag.de, produces a barcode application printed and signed by hand, an electronic record sent through a secure channel such as a German lawyer's special mailbox, or an application authenticated with a German eID. Plain email is not accepted, so a foreign company without a German eID will normally use the barcode route or a German lawyer.
4. The court issues the payment order (Mahnbescheid). It tells the debtor the claim has not been checked and gives it two weeks from service to pay or object (s692 ZPO).
5. If there is no objection, apply for the enforcement order (Vollstreckungsbescheid) after the two weeks (s699 ZPO) and within six months of service, or the payment order lapses (s701). The enforcement order counts as a default judgment declared provisionally enforceable (s700).
6. If there is an objection (Widerspruch), the case goes, on request, to the court named for contested proceedings, and the creditor must set out the claim like a statement of claim within two weeks (ss696, 697 ZPO). The debtor can also challenge the enforcement order (Einspruch) within two weeks of service (s339 ZPO).

The procedure is in German and best suited to clear invoice debts that the debtor has simply not paid.

European Order for Payment and European Small Claims: who can use them

The two EU instruments apply only to cross-border cases within the EU: a creditor based in another member state (not Denmark) can use them against a German company, but a UK or US creditor cannot.

Under Article 3 of Regulation (EC) No 1896/2006, a case is cross-border only if at least one party is domiciled or habitually resident in a member state other than that of the court. A French supplier suing a German buyer qualifies; a London or New York supplier does not. The European Order for Payment:

• covers specific sums that are due when the application is filed (Article 4), and no lawyer is needed to apply (Article 24);
• should normally be issued within 30 days (Article 12), in Germany by the Amtsgericht Wedding (s1087 ZPO);
• gives the debtor 30 days to oppose without reasons (Article 16), which moves the case into ordinary proceedings;
• once enforceable, is enforced in other member states without a declaration of enforceability (Article 19).

The European Small Claims Procedure, Regulation (EC) No 861/2007 as amended, covers claims up to €5,000 excluding interest and costs (Article 2). It is written, with a hearing only where needed (Article 5); the defendant has 30 days to answer, judgment follows within 30 days of the responses (Article 7), no lawyer is needed (Article 10), and the judgment is enforceable notwithstanding appeal and across the EU (Articles 15 and 20).

EU creditors whose German debtor banks in another member state can also consider the European Account Preservation Order, a without-notice account freeze; Global Law Experts' guide to cross-border debt recovery between Germany and France explains how it combines with Brussels I Recast enforcement.

Mahnverfahren vs European Order for Payment vs Small Claims vs ordinary claim

The right route depends on where you are based, whether the debt is disputed and its size:

	German Mahnverfahren	European Order for Payment	European Small Claims	Ordinary claim (Klage)
Who can use it	Any creditor, including UK and US companies	Creditors in another EU state (not Denmark)	Creditors in another EU state (not Denmark)	Any creditor
Claim value	Any specific euro sum	Any specific sum due	Up to €5,000 excluding interest and costs	Any
Court for a foreign applicant	Amtsgericht Wedding	Amtsgericht Wedding	Competent local court	Amtsgericht up to €10,000, else Landgericht
Debtor's time to respond	Two weeks to object	30 days to oppose	30 days to answer	Set by the court
Does the court check the claim?	No	Only whether it appears founded	Yes	Yes
Lawyer required?	No	No	No	Yes at the Landgericht
Court fee	0.5 fee, minimum €38	0.5 fee, minimum €38	GKG scale	3.0 fees
Best for	Undisputed invoices	Undisputed EU cross-border debts	Small disputed EU claims	Disputed debts

Even where an objection is likely, a payment order stops limitation running and costs little extra, because its fee is credited against the later court fee.

When the debtor disputes: suing in the German courts

A disputed debt is decided in ordinary civil proceedings before the local court (Amtsgericht) for claims up to €10,000, the threshold in s23 of the Courts Constitution Act, and the regional court (Landgericht) above that.

Before the Landgericht, s78 ZPO requires representation by a lawyer. Proceedings are in German, written pleadings carry most of the case, and foreign-language documents usually need translation. Three points matter to non-EU creditors:

• Security for costs. Under s110 ZPO a claimant without habitual residence in the EU or EEA must, on the defendant's request, give security for costs unless a treaty rules this out or it holds sufficient property in Germany. UK and US companies should ask whether an exemption applies.
• Agent for service. A court can order a party abroad to name an agent for service in Germany; otherwise later documents can be posted and treated as served after two weeks (s184 ZPO).
• Forum choice. Suing at home and enforcing in Germany is possible, but suing where the debtor and its assets are is usually faster. Our guide on how to enforce a foreign judgment covers the reverse route.

Court fees and lawyers' costs

German court fees are fixed by statute according to the value of the claim, and the losing party bears the costs, including the winner's statutory lawyers' fees.

The Court Fees Act (GKG) charges 0.5 of a full fee, at least €38, for a payment order or European order for payment (item 1100), and 3.0 fees for first-instance proceedings (item 1210), against which the dunning fee is credited. Full fees come from Annex 2 as amended in 2025:

Claim value	One full fee	Payment order (0.5)	Ordinary claim, first instance (3.0)
€5,000	€170.50	€85.25	€511.50
€10,000	€283.00	€141.50	€849.00
€50,000	€638.00	€319.00	€1,914.00
€100,000	€1,198.00	€599.00	€3,594.00

Lawyers' statutory fees under the Lawyers' Remuneration Act (RVG) are also calculated from the value of the matter. Under s91 ZPO the losing party pays the costs of the action, including the winner's statutory lawyers' fees; fees agreed above that level are not recoverable. Budget separately for translations.

Enforcement: Zwangsvollstreckung and the Gerichtsvollzieher

With a title, either a judgment or an enforcement order, German enforcement (Zwangsvollstreckung) is carried out by the court bailiff (Gerichtsvollzieher) for movable assets and by the enforcement court for bank accounts and other claims.

Enforcement runs on final or provisionally enforceable judgments (s704 ZPO), using an enforceable copy bearing the enforcement clause (s724), once the title has been served on the debtor (s750). The main tools:

• Statement of assets (Vermögensauskunft). On the bailiff's request the debtor must list all its assets, and a company must give its name, register number and seat (s802c ZPO), confirming the statement in lieu of an oath.
• Bank account garnishment. The enforcement court forbids the bank, as third-party debtor, to pay the debtor (s829 ZPO); the creditor has the order served on the bank. This is usually the quickest route to money.
• Seizure of movable assets by the bailiff.

Speed matters. Under s88 InsO, security obtained by enforcement in the last month before an insolvency application becomes ineffective when proceedings open, after which individual enforcement is barred (s89) and creditors lodge claims in writing with the administrator (s174). The directory's insolvency and restructuring specialists can advise on filing.

UK and US creditors after Brexit

UK and US creditors can use the German Mahnverfahren and German courts exactly as German creditors do, but not the EU's simplified cross-border tools.

The European Order for Payment, European Small Claims and Brussels I Recast no longer apply between the UK and Germany. For a UK creditor that sues in England, the gap is partly filled by the 2019 Hague Judgments Convention: the Hague Conference status table shows it in force for the UK from 1 July 2025 and for the EU, including Germany, from 1 September 2023. Under Article 16 it applies only if it had effect between both states when proceedings began, so English claims issued before 1 July 2025 do not benefit. The United States signed in 2022 but has not ratified.

In practice a UK supplier with a plain unpaid invoice will usually apply to the Amtsgericht Wedding rather than sue in England. An English judgment helps more where the contract has an exclusive English jurisdiction clause or the debtor has UK assets. Our guide to UK late payment rules and the Fair Payment Code covers the home-market position.

When to instruct a local lawyer in Germany

A foreign creditor can file an undisputed payment order without a lawyer, but debt collection in Germany usually benefits from a German litigation lawyer once the debt is disputed, large or at risk. Consider instructing one:

• When the debtor has raised complaints about quality, delivery or set-off, because an objection is likely.
• When the claim exceeds €10,000, since the contested stage will be before the Landgericht with compulsory representation.
• When there are signs of insolvency, to move quickly on attachment orders.
• When limitation is close, such as invoices that fell due in 2023.

Before the first call, gather the contract and terms, every invoice with proof of delivery and receipt, reminder correspondence, the debtor's register details, an interest calculation and a note of any complaints. Ask for an estimate that separates court fees, statutory fees and any hourly rate.

Corporate INTL runs a directory of lawyers and advisers in more than 150 jurisdictions. You can browse litigation lawyers in Germany, the full Germany adviser directory or dispute resolution specialists worldwide, or use the form below and we will put you in touch with a member.

Related guides:

Guide	What it covers
Customer not paying invoice	UK steps from reminder to county court
How to enforce a foreign judgment	UK, EU and US enforcement routes
Employment lawyer Germany	Choosing a German employment lawyer
Patent attorney Germany	Choosing a German patent attorney

Frequently asked questions

How do I recover a debt from a German company?

Put the company in default with a reminder or let 30 days pass after the invoice, send a final demand, then apply for a court payment order, through the Amtsgericht Wedding if you are based abroad. Without an objection within two weeks, apply for an enforcement order and instruct a bailiff.

What is the Mahnverfahren?

Germany's court dunning procedure under ss688 and following of the ZPO. The court issues a payment order without checking the claim; if the debtor does not object within two weeks, the creditor obtains an enforcement order that works like a provisionally enforceable default judgment.

What interest can I charge a German company on a late invoice?

For business debts, nine percentage points above the base rate under s288(2) BGB. With the base rate at 1.52% since 1 July 2026, that is 10.52% a year, plus a flat €40 per payment claim.

Can a UK company use the European Order for Payment?

No. It applies only where at least one party is domiciled in an EU member state other than the court's, and the UK is outside the EU. A UK creditor can still use the German national Mahnverfahren through the Amtsgericht Wedding.

How long do I have to collect a debt in Germany?

Usually three years from the end of the year in which the claim arose and you knew the facts (ss195 and 199 BGB), so invoices due in 2023 expire at the end of 2026. Filing a payment order or claim suspends limitation if service follows promptly.

How much does a German payment order cost?

Half a full court fee under the GKG, at least €38: €141.50 on a €10,000 claim and €319 on €50,000. If the debtor objects, the fee is credited against the 3.0 fee for ordinary proceedings.

What happens if the German debtor becomes insolvent?

Once proceedings open, individual enforcement is barred and you lodge your claim in writing with the insolvency administrator. Security obtained by enforcement in the month before the insolvency application becomes ineffective when proceedings open.

Is an English judgment enforceable in Germany?

For proceedings started on or after 1 July 2025, generally yes under the 2019 Hague Judgments Convention. Older English judgments depend on German national rules, so many UK creditors simply file a payment order or sue in Germany instead.

Sources

1. Bürgerliches Gesetzbuch (BGB), gesetze-im-internet.de
2. Zivilprozessordnung (ZPO), gesetze-im-internet.de
3. Deutsche Bundesbank, Basiszinssatz nach § 247 BGB
4. Mahngerichte.de, applicants based abroad
5. Regulation (EC) No 1896/2006, European order for payment, EUR-Lex
6. Regulation (EC) No 861/2007, European Small Claims Procedure, EUR-Lex
7. Gerichtskostengesetz (GKG), gesetze-im-internet.de
8. Insolvenzordnung (InsO), gesetze-im-internet.de
9. Hague Conference, status table of the 2019 Judgments Convention
10. Global Law Experts, Cross-border Debt Recovery Between Germany and France (2026)

About this article

This guide was researched and written by The Corporate INTL Newsroom, which covers cross-border legal, regulatory and business developments for lawyers, professional advisers and financiers in over 150 jurisdictions. Every deadline, interest rule, court fee and procedural step has been checked against the German statutes on gesetze-im-internet.de, the Bundesbank's base rate table, the German dunning courts' portal, the EU regulations on EUR-Lex and the Hague Conference's treaty records. It is general information, not legal advice; take advice from a qualified German lawyer before starting proceedings. Last reviewed 13 November 2026. For more analysis like this, visit the Corporate INTL newsroom or subscribe to Corporate INTL.