Enforcement notice
What is an enforcement notice?
An enforcement notice is a legal document issued by a court, allowing a creditor to initiate enforcement measures against a debtor.
Issuance: It is issued upon the creditor’s request if the debtor does not respond to a dunning notice within the prescribed deadline.
Creation: The notice is granted if the debtor fails to object within two weeks of receiving the dunning notice.
Contents: It includes details of the claim, such as the principal amount, interest, and associated costs.
Legal effect: An enforcement notice is an enforceable title, granting the creditor the same rights as a court judgment to initiate enforcement measures.
Objection deadline: The debtor can object to the notice within two weeks of delivery. If this period is missed, the notice becomes legally binding and enforceable.
An enforcement notice is a serious document with significant legal consequences, requiring prompt and accurate action to avoid enforcement measures.
What are the costs associated with an enforcement notice?
The issuance of an enforcement notice incurs additional costs, which may include:
Court fees:
Fees for issuing the enforcement notice are based on the claim amount (dispute value). These fees are typically higher than those for a dunning notice.
Attorney fees:
If the creditor has engaged an attorney, additional attorney fees apply. These are regulated by the German Attorneys’ Fees Act (RVG) and also depend on the claim amount.
Enforcement costs:
If enforcement measures are initiated, further costs may arise, including fees for bailiffs, asset seizure measures, or other procedural expenses.
Default interest:
As with a dunning notice, default interest may be charged from the date of default until the claim is fully settled.
These additional costs can significantly increase the total claim amount. Prompt response and resolution are crucial to avoid further financial burdens.
Can I object to an enforcement notice?
Debtors can file an objection to an enforcement notice, providing an opportunity to challenge unjustified claims and request a legal review.
Key points for objection:
Objection period:
The objection must be submitted within two weeks of receiving the enforcement notice. This deadline must be observed to avoid legal disadvantages.
Form of objection:
The objection must be filed in writing with the competent court. Include the enforcement notice’s reference number to ensure proper handling.
Consequences of objection:
Upon objection, the case is typically referred to the competent district court, where it proceeds as a regular litigation process. This includes a hearing to review the claim.
Can I reach an agreement with the creditor after receiving an enforcement notice?
Even after an enforcement notice has been issued, it is still possible for the debtor to negotiate a settlement with the creditor.
Options for resolution:
Direct negotiation:
The debtor can contact the creditor directly to seek an out-of-court resolution, such as paying the full amount, agreeing to a payment plan, or reaching a settlement.
Advantages of an agreement:
An agreement can reduce costs for both parties and prevent time-consuming enforcement actions. The creditor may receive payment faster, while the debtor avoids additional costs and measures.
Form of agreement:
It is advisable to document any agreement in writing to ensure clarity and legal certainty. Both parties should sign the agreement.
Informing the court:
If enforcement measures have already been initiated, the debtor or creditor should notify the court of the settlement to halt enforcement actions.
Through timely communication and negotiation, debtors can often mitigate the financial and legal impact of an enforcement notice.