Debt collection is the set of practices used to recover longstanding overdue payments from various parties. In certain delicate cases, companies established in Austria might face the impossibility of paying their debts to suppliers and creditors. In this case, creditors can collaborate with a debt collection agency to recover the money. This article explains some of the procedures linked to debt collection in Austria. Plus, our team of lawyers in Austria can help you in all cases involving commercial debt collection.
| Quick Facts | |
|---|---|
| Who can collaborate with our debt collection lawyers in Austria? | Individuals and business owners who want to recover debts |
|
How is debt collection made in Austria? |
Through amicable procedure or in the court of law |
|
Legislation |
– Civil Law in Austria, – Insolvency Law in Austria |
| The first step in debt recovery | Sending a letter requesting payment. Our Austrian lawyers with experience in debt collection can manage the process. |
| Credit verification of the debtor’s company |
Recommended when starting the debt collection procedure |
| Working with a debt collection lawyer or debt recovery agency in Austria |
Both options are available for our customers. |
| We can prepare the case for legal actions (YES/NO) |
YES |
| Personal negotiations with the debtor in question |
Handled by our attorneys in Austria |
| New payment schedule proposed |
Possible |
| Specialists in international debt collections implying Austrian citizens | We offer dedicated strategies to our customers. We know the legislation linked to foreign debt collection. |
| How long does it take to recover money through the amicable procedure in Austria? |
A few months or years, depending on the case and circumstances |
| Warning letter before initiating a civil court procedure to collect debts |
Not required |
| Communication with our clients regarding the case |
Open and constant communication with our customers who will know each step of the debt recovery process. |
| No win no fee services |
A specific fee is paid by clients once the money is recovered and the case is concluded. |
| Why work with our law firm in Austria? | We provide in-depth legal advice and guidance in the debt recovery process. |
Table of Contents
How to recover the debt in Austria
Local debt collection in Austria is a multi-step process that starts with a common notification and can escalate to more complex procedures if the debtor still refuses or is unable to pay. The process will usually start with out-of-court procedures. These can include:
- Contact the debtor: an initial amicable notification is usually the first step for recovering debts in Austria.
- Have a meeting with the debtor: our team of attorneys in Austria can help represent you during a face-to-face meeting with the debtor.
- A formal letter of demand: the formal letter of demand is usually the last amicable action and it clearly states the intentions to take the case to court should the debtor refuse to pay;
- Court proceedings: if the debtor refuses to pay, you have the right to take the case to an Austrian court; special assistance can be provided by our lawyers in case of inter-state debts.
Hiring a debt collection agency in Austria is usually advantageous mostly because these agencies are not paid if the claimant does not recover its pending amount of cash from the indebted and are usually paid with a percentage of these amounts.
The methods used by the agency are usually not different from those used by the claimant, but many debtors pay their debts once the situation becomes official. Usually, the debt collection agencies have the following responsibilities:
- sending official announcements to the debtor,
- fulfilling all the necessary claims before a trial,
- representation during the trial,
- taking all the steps necessary for the enforcement of the decision made by the court.
Usually, the claimants agree with the debtors to pay their debts in installments or in full after a period of time before a judicial procedure is raised against them. More about the procedures involved can be explained by our Austrian lawyers with experience in debt collection. You can also discover this infographic with information on this topic:
Procedures for debt collection in court
If the previous methods are not working, the claimants are advised to start the court proceedings by empowering the debt collection agency to pursue or initialize the actions at the Commercial Court. The average waiting time for a decision in such a case is six weeks if the debtor does not contest the claim. If the debtor contests the decision, an appeal can be raised in the Supreme Court, and the period of time until the final decision is raised with another six weeks.
The enforcement procedure may start if the court takes this decision. To accomplish this, a bailiff informs the debtor regarding the decision and tries to get all the information regarding the debtor’s assets that can be auctioned if there are not sufficient funds to cover all the claims. The debtor’s property is seized if necessary (if the claim was not paid) ,and its assets are offered in a public auction in an attempt to cover the claims. Please check this video presentation with details about the debt recovery process in Austria:
Why choose a debt recovery agency in Austria?
A debt collection agency in Austria only deals with claims of this kind and can offer solutions at hand to all those who want to recover their debts. Both individuals and legal entities can turn to debt recovery agencies in Austria and specialists who know the legislation and what procedures are recommended. Moreover, international debt recovery cases can also find their solution, if you collaborate with a debt collection agency in Austria, as you will find specialists at our company. Here are some of the steps involved in debt recovery in Austria:
- Clients contact us for a claim.
- The next step is to analyze the presented case, regardless of whether it is debt recovery in Austria or in other countries.
- We can set in motion the amicable procedure of recovering debts and send notifications to debtors.
- All the while, clients are informed by our debt recovery agency in Austria about the status of the process.
- If debtors have responded to our requests and are open to renegotiations, new payment terms can be established.
- Clients are notified of payments, followed by an agency fee to be paid.
These are some of the steps involved in debt recovery in Austria through the amicable procedure. If this is not an option at hand, the case is referred to the court of law, where a payment order can be issued with immediate effect. We advise you to contact our specialists in debt collection in Austria with confidence and learn more about legal aspects and related procedures.
Statistics about debt recovery in Austria
In the following lines, we present some statistical data related to debt collection in Austria:
- Claims for debt collection recovery in Austria are resolved in a maximum of 2-3 years, with a recovery rate of around 80%.
- Various social and economic factors led to a high risk of insolvency in the period 2020-2023 in Austria, which caused debt recovery claims to be found in various sectors.
- There are over 80 debt recovery agencies in Austria, according to data for 2024.
We recommend our legal services in other matters besides debt recovery in Austria. You can choose us if you want to immigrate to Austria. We can explain all the conditions for obtaining a residency in Austria. Moreover, you can apply for citizenship in Austria with the help of our immigration experts. Do not hesitate to contact our law firm in Austria and discover complete legal services at affordable prices.