PROTOCOL OF ACTION OF THE CREDITOR TO MAXIMIZE THE RECOVERY OF CREDITS

The non-payment of commercial debts in Spain is an increasingly frequent situation in the business sphere. Its immediate consequence is the loss of liquidity of the creditor company, which directly affects its operational and financial capacity. In addition, the management of an unpaid debt requires time, internal resources and a strategy that often distracts the company from its main objective: generating value and growing.

This guide for debt recovery aims to guide companies and professionals on the steps to recover an unpaid credit in Spain, explaining in a clear manner the phases of the process and the essential legal considerations that every creditor must take into account in order to maximize their chances of success.

PHASE 1: PRIOR DIAGNOSIS OF THE DEBT

The first step in any debt recovery in Spain is to carry out a legal and economic diagnosis of the debt. Before initiating any collection action, the creditor must verify that the credit meets the legal requirements to be claimed.

When can a debt be claimed judicially?

For a debt to be valid for the purposes of a claim, it must be:

• Liquid: The amount must be clearly determined or capable of being calculated by means of a simple mathematical operation.
• Due: The voluntary payment period has expired.
• Enforceable: The debt must not be subject to suspensive conditions nor have become time-barred.

If the debt does not meet these three conditions, there is no enforceable right of collection before the courts.

Key documents to claim a debt

It is essential that the creditor gathers all the evidentiary documentation that allows them to demonstrate the credit right. Among the most important documents are:

• Contracts and annexes regulating the commercial relationship.
• Invoices with concept, amount and due date.
• Delivery notes or work certificates that prove the provision of the service or delivery of the product.
• Proof of the debtor’s conformity, such as emails, signatures or communications.
• Express acknowledgements of debt, even in simple formats such as an email or a WhatsApp message.

An express acknowledgement of debt is a legal asset of great value, since it reduces the possibilities of opposition by the debtor in a future judicial proceeding.

Limitation periods for debts in Spain and Catalonia

One of the most important aspects when claiming a credit is to control the limitation periods:

• General period in Spain: 5 years from the due date of the invoice (article 1964 CC).
• Catalonia: 10 years for most debts according to the Catalan Civil Code.
• Other special cases: for example, 3 years to claim fees of lawyers, notaries and experts (art. 1967.1 CC).

To prevent the debt from becoming time-barred, the creditor may interrupt the period by sending a registered burofax with acknowledgement of receipt.

Solvency of the debtor: natural or legal person

In addition to the age of the debt, it is crucial to assess the solvency of the debtor:

• Natural persons: they are liable with all their present and future assets (universal liability).
• Legal persons (S.L., S.A., etc.): they are liable with their corporate assets, except in cases of fraud, where the directors may be personally liable.
• Useful sources of information to verify solvency:
• Land Registry (real estate).
• Commercial Registry (annual accounts, corporate bylaws).
• Commercial financial solvency reports.

Main causes of non-payment

Knowing the cause of non-payment allows the best strategy to be defined:

1. Administrative oversight → It is resolved with an out-of-court demand.
2. Lack of liquidity with willingness to pay → An amicable negotiation, deferrals or payment schedules are recommended.
3. De facto insolvency → It may require debt acknowledgement agreements with partial remission.
4. Insolvency proceedings → Act in accordance with the creditors’ protocol.
5. Disagreement with the service or product → Prepare solid evidence proving compliance with the contract.

In any scenario, an express acknowledgement of debt by the debtor significantly strengthens the creditor’s position and facilitates the future judicial recovery of the credit.

PHASE 2: OUT-OF-COURT RECOVERY OF THE DEBT – ADR AS A MANDATORY REQUIREMENT

Once the strategic diagnosis of the credit has been carried out, the next step in debt recovery in Spain is the out-of-court recovery phase.

Since April 2025, with the entry into force of Organic Law 1/2025, on measures regarding the efficiency of the Public Justice Service, it is mandatory to attempt prior negotiation for any judicial claim for debt recovery to be admitted for processing.

What are ADR in debt recovery?

Appropriate Dispute Resolution Mechanisms (ADR) are procedures that allow the creditor and the debtor to attempt to reach an agreement before initiating litigation.

The main options are:

1 Formal out-of-court demand and direct negotiation

Sending a burofax to the debtor demanding payment.

It serves to open a negotiation channel and also interrupts the limitation period of the debt (art. 7 LO 1/2025).

2 Mediation

A neutral third party (mediator) facilitates dialogue between the parties.

It is a confidential and voluntary process.

3 Conciliation before the Court Clerk (LAJ)

It is carried out at the court, without yet initiating litigation.

If there is an agreement, it is formalized by means of a decree with the same force as a judgment (enforceable title).

4 Negotiation before a Notary

It allows signing a payment agreement or acknowledgement of debt with high legal certainty.

If elevated to a public deed, it becomes an enforceable title (art. 12 LO 1/2025).

5 Confidential binding offer

The creditor submits a formal payment proposal to the debtor.

If accepted, the agreement is irrevocable and binding.

If rejected or there is no response within one month, the requirement to resort to judicial proceedings is deemed fulfilled (art. 17 LO 1/2025).

Which ADR to choose to claim a debt?

The choice will depend on the nature of the debt and the debtor’s situation:

• Debtor willing to pay but without liquidity → It is recommended to sign an acknowledgement of debt with a payment schedule, preferably notarized.
• Non-payment due to conflict over the service or product → It is advisable to opt for a formal demand, mediation or even a binding offer to speed up the solution.

Ultimately, ADR have become an essential step in the recovery of commercial credits in Spain, since they not only increase the chances of an amicable agreement, but are also a legal requirement to access the courts.

PHASE 3: FILING A JUDICIAL CLAIM FOR NON-PAYMENT OF DEBTS

If the ADR to claim a debt in Spain do not yield results, or if the situation advises going directly to the courts (after fulfilling the procedural requirement), it is time to file a judicial claim for debt recovery.

The Spanish legal system offers different procedures depending on the amount of the debt and the debtor’s response.

Order for payment procedure: fast recovery of documented debts

The order for payment procedure is an agile and simplified judicial procedure, designed to claim liquid, due, enforceable debts documented in writing.

Main stages of the order for payment:

1. Initial application → The creditor submits a written document with the identification of the parties, the origin and amount of the debt, as well as the supporting documents (contracts, invoices, delivery notes, etc.).
2. Admission and payment request → The LAJ requires the debtor to pay within 20 working days or to file opposition.
3. Possible scenarios:

• The debtor pays → The process ends successfully.
• The debtor neither pays nor opposes → The decree of the LAJ becomes an enforceable title to request immediate attachment.
• The debtor opposes → The order for payment transforms into declaratory proceedings (oral or ordinary trial).

Advantages of the order for payment: speed, simplicity and the possibility of obtaining an enforceable title in a short time.

Oral trial: recovery of debts up to €15,000

The oral trial is the ordinary declaratory procedure for claims under €15,000.

It begins with a written claim accompanied by documentary evidence.

The debtor has 10 working days to respond.

If necessary, an oral hearing is held; otherwise, judgment is issued directly.

Judgments are subject to appeal, unless the claimed debt is less than €3,000, in which case the decision is final.

Ordinary trial: recovery of debts over €15,000

The ordinary trial is the procedure applicable to claims exceeding €15,000. Phases of the ordinary trial:

1. Claim and defence → 20 working days for the defendant to respond.
2. Preliminary hearing → An agreement is attempted, disputed facts are set and evidence is admitted.
3. Oral trial → Evidence is examined (witnesses, experts, interrogations).
4. Judgment → Subsequently subject to appeal.

It is a more complex and lengthy procedure, recommended for high-amount debts or those requiring exhaustive evidence.

Lawyer, court representative and costs of judicial recovery

The intervention of a lawyer and court representative will depend on the amount:

• In the order for payment procedure, it is not mandatory to file the initial application.
• In case of opposition by the debtor or enforcement of judgment, it is mandatory if the debt exceeds €2,000.
• In oral and ordinary trials, the assistance of lawyer and court representative will be mandatory when the claimed debt exceeds €2,000.

Main costs of a debt recovery procedure:

• Lawyer’s fees, which may be agreed with a fixed fee, success percentage or mixed formula.
• Court representative’s fees, calculated according to tariff depending on the amount.
• Court fees, mainly applicable to legal persons (€100 in order for payment, €150 in oral trial and €300 in ordinary trial).
• In case of a favourable judgment, it is usual for the debtor to be ordered to pay the procedural costs, which allows recovery of a good part of the investment in the procedure.

In conclusion, the judicial claim to recover debts in Spain offers different avenues depending on the amount and the available documentation. The correct choice of procedure, together with the appropriate procedural strategy, significantly increases the creditor’s chances of success.

PHASE 4: ENFORCED COMPLIANCE WITH A FAVOURABLE JUDGMENT

Obtaining a favourable judgment in debt recovery confirms the creditor’s right to collect their credit. However, in many cases the process does not end there, since if the debtor does not pay voluntarily within the legal period of 20 days, it will be necessary to initiate the enforced execution of the judgment.

What is enforcement of judgment in debt recovery?

Enforcement of judgment for non-payment is the judicial procedure that allows the creditor to request the attachment of the debtor’s assets and rights until the amount owed is covered.

Main stages of the enforcement procedure:

1. Enforcement claim → The creditor requests enforcement before the same court that heard the proceedings.
2. Enforcement order → The court issues an order authorizing enforcement.
3. Attachment of debtor’s assets → The LAJ locates bank accounts, real estate, vehicles or other attachable assets.
4. Forced realization of assets → Normally through judicial auction, although it may also be done through specialized entities.
5. Payment to the creditor → With the money obtained, the principal, interest and costs of the process are paid.

Costs of enforced execution of judgment

Enforcement generates additional expenses, which in principle are borne by the debtor:

• Lawyer and court representative’s fees.
• Expert valuations.
• Publications on auction portals.

All these costs are added to the principal amount of the debt and must be paid by the enforcement debtor.

What happens if the debtor has no attachable assets?

One of the most frustrating scenarios is unsuccessful enforcement. In this case:

• The enforcement is not closed; it remains open.
• The creditor may periodically request new asset investigations.
• If the debtor acquires assets in the future (inheritances, salaries, prizes, etc.), they may be immediately attached.

When the insolvent debtor is a company, the creditor may explore other avenues:

• Action for liability against directors if they failed to comply with their legal duties.
• Application for compulsory insolvency proceedings to orderly liquidate the company’s assets.

How long does a judicial debt recovery procedure last?

The duration depends on multiple factors:

• Type of procedure → The order for payment and oral trial are usually faster than the ordinary trial.
• Workload of the court → Each judicial district has different timelines, which generates large differences between territories.

As an indicative reference, an oral trial may be resolved in around 8 months in a court with little congestion, while in another it may last up to 14 months or more.

In conclusion, enforcement of judgment in Spain is an essential mechanism to guarantee the effective collection of credits. Although it may extend over time and does not always guarantee immediate results, it allows the creditor to keep their right alive until the debtor has sufficient assets to face the debt.

CONCLUSIONS: HOW TO MAXIMIZE DEBT RECOVERY IN SPAIN

Debt recovery in Spain is not a simple formality, but a complex and strategic legal process that requires acting diligently from the very beginning.

Each phase of the procedure —from the initial diagnosis of the debt and the assessment of the debtor’s solvency, through the mandatory out-of-court claim through ADR, to the eventual judicial claim and enforced execution of the judgment— presents particularities that may make the difference between recovering the credit or assuming the loss.

To increase the chances of success in a commercial debt recovery, it is key to have the support of a lawyer specialized in credit recovery, capable of designing a strategy adapted to the nature of the debt, the debtor’s profile and the applicable legal deadlines.

Ultimately, having a tailor-made action protocol not only protects the creditor’s rights, but also optimizes resources and improves the real possibilities of collection.

Final note

This article is for informational purposes and does not replace professional legal advice. To receive personalized guidance on how to claim debts in Spain or legal assistance in credit recovery processes, you may contact our team at info@gimenez-salinas.es.

FAQ – FREQUENTLY ASKED QUESTIONS ABOUT DEBT RECOVERY IN SPAIN

What is the deadline to claim a debt in Spain?

In Spanish common law, the general period to claim commercial debts is 5 years from the due date of the invoice. In Catalonia, the period is 10 years in most cases. There are specific periods for certain debts, such as 3 years to claim lawyers’ or notaries’ fees.

Is it mandatory to attempt an agreement before suing for non-payment?

Yes. Since April 2025, with the entry into force of Organic Law 1/2025, it is mandatory to attempt an Appropriate Dispute Resolution Mechanism (ADR), such as mediation, conciliation or out-of-court demand, before filing a judicial claim.

Which judicial procedure is used to claim a debt?

It will depend on the amount and available documentation:

Order for payment procedure → For documented, liquid and enforceable debts.

Oral trial → For debts up to €15,000.

Ordinary trial → For debts exceeding €15,000.

What happens if the debtor has no assets to attach?

If the debtor is insolvent, enforcement is not closed and remains open. The creditor may periodically request new asset investigations. If in the future the debtor receives assets or income, they may be immediately attached.

Is it necessary to have a lawyer to claim a debt?

The intervention of a lawyer and court representative is not always mandatory in the initial phase of the order for payment. However, it will be mandatory in case of opposition by the debtor, in oral and ordinary trials exceeding €2,000, and in the enforcement phase of judgment.