When you invoice a German client and the payment simply doesn't come, the silence can feel particularly disorienting from abroad. You may be unsure whether your standard debt collection process applies, whether German courts would even hear your case, and what happens if you push too hard and damage the relationship. The good news: German law gives creditors strong tools, and the process is more efficient than you might expect.
Under German law, a debtor is typically in Verzug (default) 30 days after a payment is due and demanded — or immediately upon a formal warning letter (Mahnung). Once in Verzug, you are entitled not only to the outstanding amount but also to statutory default interest, which is currently set at 9 percentage points above the base rate for commercial transactions. This adds up quickly and creates a real financial incentive for debtors to settle early.
First, send a formal written reminder (Mahnung) by registered post. While not always strictly required as a matter of law, it establishes the date of default and creates an unambiguous paper trail. German courts take documentation seriously, and a properly dated reminder can strengthen your position considerably.
Second, consider the gerichtlicher Mahnbescheid — the German court dunning procedure. This is a fast-track process through a specialised court (Mahngericht) that allows you to obtain an enforceable payment order without a full trial, typically within a few weeks. The procedure is largely automated, costs a fraction of full litigation, and is particularly well-suited to undisputed claims. If the debtor does not object within two weeks, the order becomes enforceable and you can proceed directly to asset enforcement in Germany.
Third, if the debtor does object or the claim is genuinely disputed, the matter moves to ordinary civil proceedings before the competent German court. For commercial claims, jurisdiction is normally determined by the contract. If there is no jurisdiction clause, German courts will apply EU rules on international jurisdiction. For claims up to €5,000, the local Amtsgericht (district court) handles the matter; above that threshold, the Landgericht (regional court) takes over — and at that level, legal representation by a German-qualified lawyer becomes mandatory.
If the debtor holds assets only in Germany and you already have a judgment from a foreign court, EU Regulation 1215/2012 makes enforcement in Germany relatively straightforward provided both countries are EU member states. For non-EU judgments, German courts apply bilateral or multilateral treaty frameworks and, where none exists, national German conflict-of-laws rules — which still permit enforcement in most circumstances, though the process takes longer and procedural requirements are stricter.
HUFELD is a Munich-based business law firm that advises international founders, companies, and entrepreneurs on German legal matters — entirely in English. We handle commercial disputes and debt recovery for clients who need pragmatic, results-oriented advice without the language barrier. Whether you need a strategically worded demand letter, representation in German court dunning proceedings, or full litigation support, we know how to move German debtors efficiently and protect your interests at every stage.
Contact HUFELD for an initial consultation in English — we'll give you a clear picture of your options under German law.
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