Debt Collection in Denmark
Debt Collection in DenmarkUpdated on Wednesday 29th January 2020
based on 2 reviews
In certain cases, companies opened in Denmark don't pay their debts to the suppliers, even in a strong economy as Denmark has nowadays. In order to recover these debts, special measures have to be instituted to force the debtor to cover the claims.
Debt collection stages in Denmark
Just like in any other jurisdiction, there are two phases of the debt collection procedure in Denmark: a pre-judicial stage and a judicial stage.
In the first stage, the creditor is sending a reminder to the debtor with the request to pay no later than 1-2 weeks. If the debtor is not paying, the creditor is advised to use the help of a debt collection agency or a lawyers in Denmark.
The lawyers in Denmark are requesting the debtor to pay the debts through a written notification and by phone, in a maximum term of 10 days.
In certain cases, an amicable settlement is signed between the debtor and the creditor and the payment is made in installments or after a longer period of time. The amicable settlement is also containing the debtor’s confirmation that he agrees to pay those debts and the payment conditions. In case of non-payment, this document can be used against the debtor in the judicial phase.
Please watch the video below for more information on debt collection in Denmark:
The judicial stage in Denmark
In the legal phase of a debt collection procedure you will definitely need the help of a Danish law firm. The Danish courts procedures can be simple or ordinary. The simplified procedure is used when the claims are not exceeding 50000 DKK. The bailiff is sending a request for payment that can be contested no later than 14 days. If it’s not contested, the Bailiff can endorse the request of payment.
If the debtor is contesting the request, the ordinary procedure must be instituted. The ordinary procedure is also used in case the debts are above 50,000 DKK.
The district courts of Denmark are hearing the cases related to the debt collection.
The bailiff is serving the writ drawn up by the attorney to the debtor. The attorney is submitting this writ at the Court Registry.
The hearing of the case is made no later than 1 to 3 months after submitting the writ. In this period of time, the debtor can pay its debts. If not, the court is ordering him to pay the debt, the court fees and the attorney’s fees. If the payment is not made, the judgment is enforced no later than 14 days and without other notification to the debtor.
The bailiff is carrying the enforcement at the request of the attorney.. First, the debtor is called in front of the court to present his financial situation and a list with his assets. If the debt cannot be paid at once, installments for a period of 10 months can be decided.
If the payment is not made again, the assets of the debtor are subject of auctions.
If the assets are not sufficient to cover the claims, an insolvency procedure is initiated. An insolvency declaration is preventing the creditors to start a new process against the debtors for a period of 6 months.
If you need assistance in a debt collection case, do not hesitate to get in touch with our attorneys in Denmark.