Debt Collection
If you have a claim against a Danish debtor, and you want to ensure satisfactory handling of the case, Law Firm Fabritius Tengnagel & Heine offers expertise, experience and professionalism.
Transnational debt collection
Recovery of debt is a legal discipline known and applied in all jurisdictions. Over the years transnational trade has become dominant, and when a dispute arises the creditor is challenged with an unfamiliar legal system. Legislative acts are often difficult to comprehend; especially if the legislative act is foreign. Consequently a creditor may, if he does not comply with the domestic debt collecting procedures of the country of the debtor, lose his claim. It is therefore vital to entrust a claim to an attorney, who specialises in the matter. Law Firm Fabritius Tengnagel & Heine has many years of experience with debt collection and has recovered claims on behalf of countless of creditors. Furthermore Law Firm Fabritius Tengnagel & Heine specialises in cases involving international disputes and the attorneys are therefore accustomed to the legal handling of foreign cases.
Preliminary steps
Before initiating debt collection the creditor must send a reminder to the debtor informing him that payment has not been received, and that failure to pay will lead to legal proceedings. If the reminder does not lead to immediate payment the case is handed to an attorney, who will send a reminder to the debtor with a 10-day payment period in coherence with Danish law. The debtor may offer to pay in instalments which, in some cases, may be the best and cheapest solution. If the debtor does not pay or react to this reminder, another reminder is sent, warning the debtor of the commencement of judicial debt collection.
Court procedure – undisputed claims
If the claim is undisputed, or a dispute is not expected, and it does not exceed DKK 100,000.00 a simplified procedure may be applied and a request for payment may be sent directly to the bailiff (instead of trying the case before a civilian court). The debtor is notified and is given the opportunity to contest the claim. If he fails to do so, the request will be treated as a judgement and will be enforced accordingly. If the claim is contested the case will be tried in a civilian court.
Court procedure – disputed claims
If the claim is disputed or it exceeds DKK 100,000.00 the attorney will send a reminder to the debtor with a 10-day payment period. If the debtor does not comply, the attorney will commence legal proceedings by suing the debtor before the district court to obtain a judgment that can be enforced.
Enforcement
When an enforceable judgment is obtained, whether by way of the simplified procedure or the ordinary court procedure, a hearing is held with the purpose of questioning the debtor regarding his financial situation as well as assets on which execution can be levied. The debtor is obliged to answer the questions truthfully under penalty of the law.
If the debtor owns assets on which execution can be levied the court allows the creditor to put a lien on said assets. Subsequently the debtor is obliged to pay the owed amount at once, or, if this is not possible for the debtor, in instalments for a period of maximum 10 months. If the debtor fails to comply, the creditor can request that the assets on which execution has been levied be sold at an auction.
Law Firm Fabritius Tengnagel og Heine is an official partner of RKI, the largest debtor register in Denmark.
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If you have a claim against a Danish debtor, and you want to ensure satisfactory handling of the case, Advokatkontoret Fabritius Tengnagel & Heine offers expertise, experience and professionalism.
