We look below ways to recover a claim that a foreign person has in Spain, both against a natural person and against a legal person:

• the extrajudicial route;
• the judicial route.

Out-of-court recovery of credit

The aim is to find an amicable solution between the parties that avoids going to court: it is therefore the most desirable option and, in practice, the fastest and cheapest.

We will try to reconcile and suggest proposals with suitable solutions, representing to the debtor the economic benefits of accessing an agreement that avoids the higher court costs.

Judicial recovery of credit

If the path of amicable settlement is not feasible, thus rendering the objective of credit recovery unattainable, both in the event of refusal to negotiate and in the event of inadmissible claims by the debtor, the judicial path remains open with the assistance of a lawyer. A court proceeding involves several stages, which is why it can take longer.

Some key points of judicial credit recovery are the following:

• identification of the territorially competent Court
• identification of all the documents suitable to establish the claim
• appropriate powers attributed to the professionals (lawyers) who represent the holder of the claim during the legal proceedings
• make the correct choice of the judicial procedure appropriate to the specific case
• From this point of view, it is usually advisable, as it is faster, the so-called order for payment procedure, which begins in the territorially competent Court – i.e. the court of the debtor’s domicile or residence. The Judge will order the debtor, within 20 days, to pay the applicant, providing proof before the Court, or to appear before it by attaching, in a well-founded and reasoned form, in a statement of opposition, the reasons why, in his opinion, he should not pay, in whole or in part, the amount requested.

If the debtor does not carry out, within the indicated period, any of the actions above, he will be judicially ordered to pay and the execution will begin, that is, the search for assets to extinguish the debt and satisfy the creditor.

If the debtor should file a written notice of opposition, a judicial proceeding will begin with longer phases that will culminate in a judgment with which it will be possible to demand payment or search for assets to be foreclosed (current accounts, real estate, receivables from third parties, vehicles… etc.).

Recovery of receivables from the Spanish Public Administration

If the debtor is a Public Administration, the procedure will be different and may sometimes be slower and more complex.

Any natural or legal person who performs a work or renders a service or has a concession of any kind from a Public Administration, whether state, autonomous or local, has the right to issue invoices for the services rendered to the Public Administration, which will be obliged to pay the amount of the invoice within thirty days from the sending of the invoice itself.

If the Public Administration does not pay within the period, default interest and the right to reimbursement of procedural costs will be generated and a prior administrative complaint may be filed in which the payment of the amounts due will be requested in writing from the Public Administration concerned.

The Public Administration will have one month to respond expressly and if it does not, the creditor may take contentious-administrative legal action in which the immediate payment of invoices may be requested as a precautionary measure.

It is required, as in the case of debts between natural persons, the assistance of a lawyer and, once the favourable judgment is obtained, there are also enforcement recovery mechanisms through foreclosure and administrative rules to ensure recovery.

In conclusion: if you are a foreigner and need to recover debts in Spain, do not hesitate to contact us at the following email: info@fiatlux.legal. Our lawyers and consultants will be happy to put their experience and skills at your disposal to meet your needs in the best possible way.

Juan Manuel Pérez de las Vacas Galán, Lawyer in Madrid – Fiat Lux Legal