Default actions
Out-of-court/Commercial default action
Out-of-court or commercial default action is carried out in writing, by telephone or through personal contact (see ‘Field service [collection]’). If the debtor is a private individual, at least one written reminder must be sent before litigation default action can be initiated. However, if it is indicated on the invoice that default in payment will commence 30 days after receipt of the due invoice, no reminder is necessary. Among business people, litigation default proceedings can be initiated with no additional reminder as soon as the legally stipulated payment term of 30 days has expired if the debt has not been paid.
Litigation default proceedings
Litigation default proceedings give the creditor the option of obtaining an executory title / writ of execution in the event of an uncontested claim (see ‘Titling’). However, this works only if the debtor has filed neither an objection nor a protest in the course of proceedings. Otherwise, the creditor has to file an action. If the debtor has filed neither an objection nor a protest within the set deadlines of a default action and the creditor has obtained a legal writ of execution (title), execution may proceed. Irrespective of this, the parties may come to a settlement at any time.