German Payment Order – Das Mahnverfahren

What is needed in order to recover a debt from an unwilling debtor is an enforcement order – a title against your debtor and his property. That rule holds true for most parts of the world and also for Germany. Such an enforcement order can only be obtained from court. It entails the possibility to execute the order against your debtor's property to recover your debt. The actual practical enforcement is handled via authorized local bailiffs aided by police assistance, if necessary. The revenue from the selling of your debtor's assets is then used to satisfy the debt.

What exactly is a Mahnverfahren – an Order for Payment – now though? It is a genuinely German answer to the problem of outstanding, but uncontested, debts. The creditor applies for a Mahnverfahren with the competent district court of the debtor's place of residence. The court then sends an Order for Payment to the debtor, who is given two weeks to object to the order. If no objection is filed within these two weeks the court goes on to service an enforcement order on the debtor against which he is given another chance to object.That is, the court will only send an enforcement order if the creditor files for one. The procedure of the Mahnverfahren is thus two-staged.

How does the application work? The Mahnverfahren dispenses with any requirement other than filling out forms. That is, no evidence, such as bills or reminders may be attached to the forms to prove your claim. The Mahnverfahren's forms merely ask you for the type of evidence that could be put forward to back your claim up. Besides that all the form asks for is your name and address as well as your debtor's name and address. Please see our Submit a Claim section to find information on how to recover your debt if you do not have these details. Naturally, the amount of the claim must be stated as well, plus possible interest. Please see our non-official translation of the official German explanatory notes for the submittal of an order for payment application form for further details.

Once your Mahnverfahren application has been sent to court it will merely be checked for formal requirements. It is partly the omission of further, more detailed checks that makes the Mahnverfahren this efficient. Court ushers or even computers can carry out such formality checks. In case you have not met the required formalities standard forms will be used to notify you of the changes you will have to make and provides you with yet another standard form to correct your application. Once your application meets the proper standards, an order for payment will be serviced on your debtor, who is given two weeks to pay or object. As said above, if he decides not to object and does not pay within these two weeks you will be holding an enforcement title after another two weeks. You can enforce that title against your debtor and his property, even if he decides to object to the enforcement order that is sent to him once the two week period for an objection to the order for payment has run. Such an enforcement (execution) would then only be temporary however – enforceable nonetheless. Further information about the execution of titles and judgements can be found on our Enforcement site.

As with all legal proceedings, there is a cost factor. Due to the efficiency of the Mahnverfahren these costs come at a relatively low rate. Especially for foreigners the actual costs may come as a pleasant surprise. Please see our Costs section to get to our Cost Calculator.

One aspect regarding the costs of a case must be said at this point already, as it embodies one of the most striking differences between the legal system of Germany and that of most other states. Namely, the debtor has to cover all costs, not just his, as is the case in most places. Your debtor will therefore also have to cover your costs and expenses. He has to bear the costs of his own defence, the costs of your legal representation and your expenses as well as the court fees. Legal action is thus the preferred choice to debt collection agencies in Germany!

For these reasons it is fair to conclude that the German Mahnverfahren comes in the form of a swift and efficient system leading to a fully legal and enforceable title and that without any of the parties ever having to see a court room from the inside. In short, creditors can collect their debts without much legal ado. In fact the system is woven so easy you don't even need a lawyer for Mahnverfahrens pending with district courts (i.e. claims up to 5000,00 Euros).