Enforcing claims in Germany: payment order proceedings, litigation and interim relief for foreign creditors

Payment order proceedings or litigation?

Commercial debt recovery in Germany begins with the choice between two court routes. For undisputed monetary claims, the court payment order procedure is fast and inexpensive: on application, the court issues a payment order (Mahnbescheid); if the debtor does not object, an enforcement order follows as an enforceable title. If the debtor contests the order, the matter proceeds to ordinary litigation; where the claim is disputed from the outset, the creditor sues directly and skips the order stage.

Interim relief for rapid protection

Where the debtor may move assets out of reach or otherwise frustrate enforcement, interim relief can be decisive. An attachment order is primarily used to secure monetary claims, while an interim injunction can provide other forms of temporary protection. Both require the applicant to establish the claim and the particular urgency on a prima facie basis. They do not replace the main proceedings, but they can create a security position within a short period that may no longer be available later.

Cost and time frame

For an undisputed claim, payment order proceedings are generally the fastest and least expensive route. If there is no objection, an enforceable title may be obtained within a few weeks. Litigation takes considerably longer, particularly where witnesses, expert evidence or several hearings are required. Attachment orders and interim injunctions may be granted very quickly, but they provide only temporary protection and often need to be followed by main proceedings.

Court and statutory lawyers' fees are generally calculated by reference to the amount in dispute. Under German civil procedure, the losing party normally bears the statutory costs of the proceedings. Before starting, a creditor should therefore assess not only the merits but also the debtor's solvency and the realistic prospects of enforcement.

What foreign creditors should clarify first

Effective enforcement starts with complete documentation of the contract, performance, invoice, due date and default. An early assessment of the debtor's assets is just as important, so that the creditor does not discover only after winning the case that enforcement is commercially pointless.

The appropriate procedure can then be chosen. An undisputed monetary claim will often justify payment order proceedings, while concrete objections point towards direct litigation. If there is a risk that assets will be moved, attachment or an interim injunction should be considered before the position deteriorates. Limitation periods must be monitored in parallel, as out-of-court negotiations do not reliably suspend time in every situation.