How are Debts Collected in Spain

When you have unpaid debts in Spain, it is crucial to understand the debt collection process. Handling international debts can be problematic, it is highly recommended that you seek professional legal advice from experienced Spanish lawyers based in the UK to guide and assist with the debt collection you are undertaking.

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In this guide, we will explore how debts are collected in Spain, the available legal routes, timeframes, options in case of unsuccessful collection, and the advantages of seeking expert legal assistance, as practised by Giambrone and Partners.

• What Happens when You Have Debts in Spain?

Discover the steps you can take if you have debts owing in Spain that you need to recover

• What are the Legal Routes of Debt Collection in Spain?

Find out more about the different routes to recovery you can take

• How Long Does Debt Recovery in Spain Take?

There are time considerations to make when recovering debts in Spain

• What are your Options if Debt Collection in Spain is not Successful?

If you cannot retrieve the debts initially, there are legal steps you should take

• Why Should I Consult Lawyers to Help with Debt Collection in Spain?

Seeking professional legal advice is the best option when trying to retrieve outstanding debts from Spain

• How Giambrone and Partners Can Help

Here’s how we can assist

What Happens when You Have Debt in Spain?

If you have outstanding debts in Spain the consequences can impact on both individuals and businesses. To tackle the situation, it is essential to understand the various courses of action open to you regarding debt collection in Spain.

Initially, a creditor should attempt to contact the debtor, reminding them of the outstanding debt and requesting payment within a given number of days. If the debtor remains unresponsive, a formal demand for payment is usually sent, a letter before action, from a law firm. This letter outlines the details of the debt and sets a deadline for payment. If the debtor continues to ignore the debt or refuses to pay, legal action can be initiated. This will involve filing a lawsuit against your debtor in a Spanish court to obtain a judgment. Once a judgment is obtained, various methods can be used to enforce it, such as wage garnishment where a percentage of the debtor’s salary can be obtained, seizures from the debtor’s bank account, or property liens against a person’s or business property, but not against the debtor

Giambrone and Partners can assist you in retrieving your unpaid debt using a range of different methods, from drafting your letter before action, instructing tracing agents if the address of the debtor is unknown and issuing legal proceedings against your debtor. You can find out more about our multijurisdictional debt collection services here.

What are the Legal Routes of Debt Collection in Spain?

Debt collection in Spain can take both judicial and extrajudicial routes. These avenues are crucial to understand in order to determine the most suitable approach for your particular situation.

Extrajudicial debt collection involves negotiation and settlement as the first step. This may involve agreeing on a payment plan or reducing the amount owed in order to resolve the debt amicably. Debt collection agencies are commonly employed by creditors. They use various techniques, including phone calls, letters, and negotiation, to persuade debtors to pay.

Judicial debt collection includes legal action and filing a lawsuit if all attempts at extrajudicial debt collection fail. The court will review the evidence and issue a judgment. Once a judgment is obtained, the creditor can enforce it by requesting the seizure of the debtor's assets, wage garnishment, or other measures.

Giambrone & Partners’ Spanish lawyers, based in the UK, are easily accessible and understand all aspects of Spanish law, making the firm the best choice for creditors in the UK trying to obtain the debts owed to them. You can book a consultation and make a claim with our Spanish lawyers today.

How Long Does Debt Recovery in Spain Take?

The duration of the procedures for debt recovery in Spain can vary significantly depending on various factors such as the complexity of the matter, debtor cooperation, and the legal route chosen.

Extrajudicial Debt Collection is usually the quickest option, a settlement is often reached promptly.

Judicial Debt Collection nearly always more time-consuming. Initiating legal action, from filing a lawsuit to obtaining a judgment, can take several months to over a year.

Enforcement of Judgment, after obtaining a judgment, can also vary in terms of time required. It depends on the complexity of the type of enforcement chosen as well as the type of asset to be seized and the level of cooperation the debtor delivers.

What are your Options if Debt Collection in Spain is not Successful?

If your efforts to collect a debt in Spain prove unsuccessful through both extrajudicial and judicial means, you still have options to consider.

The debtor’s entire assets can be accessed, for example, if they have assets in other countries. You can explore international debt recovery options through legal procedures in those jurisdictions.

Bankruptcy proceedings may be an option in cases where the debtor is an individual or a company facing insolvency. Participating in bankruptcy proceedings may allow you to recover a portion of your debt.

Another option is selling the overdue debt to a debt collection agency, this is another choice some creditors make. The debt is sold to a third-party debt purchasing company at a discounted rate enabling the creditor to recover at least a portion of the owed amount.

Why Should I Consult Lawyers to Help with Debt Collection in Spain?

Seeking legal assistance when dealing with debt collection in Spain offers numerous advantages. Lawyers with expertise in Spanish debt collection laws can provide valuable guidance as to the best option in your circumstances and can guide you through the process.

The language barrier may be a challenge when communicating with debtors or navigating the Spanish legal system. Multi-lingual, multi-jurisdictional Lawyers can bridge language issues and have a wide scope of knowledge of Spanish law. Customised strategies can be developed by lawyers, ensuring the best chance of successful recovery.

Lawyers can protect your rights as a creditor and ensure that all legal procedures are followed correctly.

How Giambrone and Partners Can Help

Giambrone and Partners is a reputable law firm with extensive experience in international debt collection, including debt collection in Spain.

We provide legal advice to guide you on the best approach to recover your debt in Spain. Our lawyers are skilled negotiators and can engage with debtors to reach settlements on your behalf. If it becomes necessary, we can represent you in Spanish courts to obtain and enforce a judgment. With our specialisation in cross-border debt collection, we are well-equipped to manage international cases efficiently.

To find out more about the debt collection procedure in Spain, or to book a consultation with our Spanish lawyers, please visit us here.

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