skip to content
What are the legal procedures that apply to credit defaults Spain?

What are the legal procedures that apply to credit defaults Spain?

defaults Spain

Dealing with credit defaults Spain can be overwhelming. Knowing the legal procedures that apply in these situations is essential. So how do you protect your financial interests and what legal steps should you take? Discover the answers and expert advice to navigate this process in an informed manner. Read on to take control of your financial situation!

How is Spain coping with credit defaults? 

One of the main challenges that every company must face is the effective management of collections related to unpaid debts. Specifically defaults Spain. This being so, this task is fundamental to maintain the financial health and operational continuity of any business.

After informal attempts at communication, such as phone calls or e-mails, a more formal procedure usually follows. This involves sending a demand letter, which represents a further step in the direction of obtaining the outstanding payment.

However, if these first attempts do not achieve the desired success, in Spain it is necessary to resort to the courts. This is due to the fact that Spain’s non-payment legislation does not provide for a specific mechanism for out-of-court debt collection.  Unlike in countries such as France, where this process is carried out through huissiers de justice.

You may also be interested in: Spanish companies and ICO guarantees

Legal procedures for credit defaults Spain 

In Spain, there are four main types of legal proceedings designed for the recovery of commercial debts.

These vary depending on the supporting documentation available, the nature of the debt and the amount to be recovered. Each of these procedures has its own dynamics and applicability, adapting to the specific needs of each case.

That said, it is crucial to understand that collections management not only has a direct financial impact. It also affects reputation and the business relationship with debtors. The judicial procedures for defaults Spain are as follows: 

defaults Spain

Order for payment procedure

When you have a debt reflected in one or more overdue invoices, it is possible to initiate the payment order procedure. In case the invoice does not have the signature or stamp of the debtor, you must present other means of proof. Some that support the defaults Spain. Such as delivery notes, certifications or other documents confirming the existence of the debt.

Through this procedure you can also claim debts in favor of the Communities of Owners. You must provide specific documentation issued by the Secretary (or Administrator) of the Community.

In this scenario, the debtor has 20 days to make payment, deny the debt or take no action. If the debtor does not respond, the procedure will continue. Entering the execution phase and carrying out all necessary seizures to completely settle the debt.

However, if the debtor denies the debt, another phase to dispute the validity of the debt takes place: declaratory proceedings (see next section).

Declaratory proceedings

These procedures for non-payments in Spain include the verbal Judgment and the ordinary Judgment. Debts up to 6,000 € are handled through the verbal Judgment. Higher debts are handled through the ordinary Judgment.

The verbal trial is a simpler process that seeks a quick resolution of defaults Spain. The debtor will have 10 days to respond in writing to the creditor’s claim. A hearing is only held if either party requests it or if the court deems it necessary.

On the other hand, the ordinary lawsuit is a more extensive procedure. In addition to the 20-day period for the debtor to respond to the claim, there are generally two hearings. One to discuss procedural issues and another where the parties, witnesses and experts are examined. Finally, the attorneys present their conclusions on the matter.

In any case, there is a key point to consider in Spanish non-payments. If the court finds in favor of the creditor, a judgment is issued to enter the enforcement phase mentioned above. This is in case it is not complied with voluntarily. 

Enforcement proceedings

In certain cases, Spain’s procedural legislation on non-payment allows claiming a debt through the execution procedure. In this the debtor’s assets are seized and converted into money to cover the claimed debt.

The main case that allows recourse to this type of process are debts that are documented in public deeds. These are made before a notary, as in loan contracts or debt acknowledgments.

Exchange procedure

A less common procedure for defults Spain is the exchange procedure. The creditor may resort to this when its claim is backed by an unpaid check, promissory note or bill of exchange.

The judge will require the debtor to make the payment within 10 days. Also agreeing to the seizure of his assets for the total amount of the debt. In addition to interest for late payment, expenses and costs of any of the non-payments Spain.

For his part, the debtor has the option of making payment, denying the debt or taking no action. If payment is made, the debtor must also pay the court costs. If he/she opposes, a new stage will be opened, which will be governed by the procedures of the verbal trial previously explained. In that sense, if the debtor does not take any action, the garnishments will continue until the debt is completely satisfied.

You may also be interested in: From the MOSS regime to the OSS regime: what is it all about?

Is it necessary for lawyers to be physically present to recover large amounts of unpaid receivables in court?

New technologies have revolutionized many aspects of everyday life. Including the way we interact with governmental and judicial services (in this case Spain). Therefore, it is necessary to recognize that the Administration of Justice has not yet reached its full potential in terms of technological implementation. 

Although telematic filing of lawsuits and pleadings is allowed, there are certain limitations. Either in the complete automation of these processes or in the courts at present.

In this context, it is essential to highlight that: fully automated systems for the electronic filing of lawsuits and pleadings in the courts have not yet been established. 

Physical presence and direct interaction remain crucial to ensure efficiency when processing files. This balance between technology adoption and physical presence is crucial for success in managing legal proceedings. Such as the ones we have explained above, aimed at credit defaults Spain.

You may also be interested in: What is the new Insolvency Law about?

Dealing with credit defaults Spain can generate uncertainty and stress. Having the support of experts and understanding the legal procedures is crucial to overcome this challenge. You are not alone in this journey.

Do you need specific guidance for your financial situation? Don’t hesitate to seek help and ask for personalized advice. We are here to guide you through every step of the process, don’t put off your financial peace of mind and take action now, write to us at!

To which companies does the VAT Differentiated Sectors Regime apply?

To which companies does the VAT Differentiated Sectors Regime apply?


You should know that VAT is not applied uniformly. The Regime of Differentiated Sectors in this tax is a key element because it modulates its application.  This depends on the nature of the business activities. We will explain this regime and we will see which companies it directly affects. Do you want to clarify your doubts about value added tax in Spain? Keep reading!

Did you become a partner with a share premium? Don't ask for dividends!

Did you become a partner with a share premium? Don’t ask for dividends!

share premium

Are you part of a company and your incorporation involved contributing a share premium? If so, it is vital to understand how this situation influences the taxation of the dividends you might receive. In this article, we will explain the key aspects you need to know in order to optimize your tax burden. Read on and make informed decisions for a better financial performance!

What you should know about social roots in Spain

What you should know about social roots in Spain

social roots

Social roots is a fundamental concept in the field of immigration. If you are in Spain or planning to come, it is essential to understand what it is and how it can affect your situation. In this article, we will provide you with the relevant information about social roots in the country. From its requirements to its importance once you start your life in the Iberian country, are you ready to learn more? Continue reading.

How is your income tax return affected if you received an inheritance?

How is your income tax return affected if you received an inheritance?

Have you benefited from an inheritance? Understanding how this event influences your income tax return is essential to make the right financial decisions. We explain how an inheritance affects your tax obligations and how you can manage it efficiently. Read on to make sure you maximize your benefits and comply with current tax regulations, let’s go!

Are there sectors in which it is easier to start a business?

Are there sectors in which it is easier to start a business?

start a business

Are you considering starting a business in Spain? It’s natural to look for opportunities that will provide you with a more accessible path to success. Fortunately, there are sectors in which market conditions and demands can ease the way for entrepreneurs. Do you want to know what these sectors are and how you can capitalize on these advantages to start your business more smoothly? Read on and get valuable information!

Why are ISD and ITP the taxes most affected by the Anti-Fraud Law?

Why are ISD and ITP the taxes most affected by the Anti-Fraud Law?

Anti-fraud Law

The Anti-Fraud Law has left a significant mark in several respects. Especially under the fight against tax fraud and tax evasion. In that sense, we will explain you why ISD and ITP-AJD are among the taxes most impacted by the Anti-Fraud Law. In addition to how these modifications may affect taxpayers, read the details!

What is senior entrepreneurship in Spain and why does it offer so many opportunities?

What is senior entrepreneurship in Spain and why does it offer so many opportunities?


More and more people over 50 are choosing to start their own businesses. What is driving this phenomenon and what opportunities do our country offer? Learn in detail about the concept of senior entrepreneurship in Spain and the reasons behind its growing popularity. If you are interested in learning how this path can open new doors in your professional life, read on!

When are the self-employed entitled to unemployment benefits [2023]?

When are the self-employed entitled to unemployment benefits [2023]?

the self-employed are entitled to unemployment benefits

Since it is important for you to know under what circumstances you are entitled to unemployment insurance in 2023, in this post we will explain it to you. Find out here when the self-employed are entitled to unemployment benefit and how you can benefit from this if you need it. Don’t miss out on this valuable information that could make a difference to your financial security, read on and find out the details!

How to capitalize your one-time unemployment payment to start your business?

How to capitalize your one-time unemployment payment to start your business?

One-time payment

The “one-time payment” emerges as an opportunity for those facing unemployment and dreaming of starting their own business. Would you like to discover how to transform this benefit into an initial boost to start your project? Read on to find out what you need to know and how to take the first step towards your entrepreneurial path, join us!