Debt collection, debt enforcement and payment order in Austria

Poor payment practices – what to do about unpaid bills?

In recent years, the payment behaviour of many debtors has deteriorated. Outstanding invoices remain unpaid and reminders are often ignored. In such cases, a reminder letter from an attorney can help. Such a letter sets the debtor a short deadline for settling the outstanding claim, including interest and any costs incurred. Many defaulting payers respond to a reminder from a lawyer and settle their debts.

Do you have outstanding debts? Act quickly and seek professional help.

Payment order and enforcement by Austrian courts

If, for instance, a reminder letter is unsuccessful, the creditor can file a claim for payment with the court. However, an out-of-court reminder letter is not a prerequisite for initiating court proceedings.

How does a claim for payment work in Austria?

An out-of-court written reminder is not a prerequisite for a dunning lawsuit. For claims up to EUR 75,000, a conditional payment order ("bedingter Zahlungsbefehl") is issued after the creditor filed a dunning lawsuit (Mahnklage"). In most cases, debtors do not lodge an objection ("Einspruch"), so that the order becomes legally binding. With a legally binding payment order, enforcement proceedings ("Exekution") can be initiated against the debtor in order to collect not only the original claim, but also interest and procedural costs.

What enforcement options are available in Austria?

The main means of enforcement are:

• Seizure and auction of real estate (condominiums, houses, land)

• Wage and salary garnishment, as well as seizure of bank deposits or cash

• Seizure and sale of movable assets such as vehicles, electrical appliances and jewellery

• Seizure of securities or company shares

• Seizure and realisation of internet domains, trademarks or industrial property rights

Debt collection, debt enforcement and payment order in Austria

How does a conditional payment order work in Austria?

A conditional payment order is a court order for payment issued in Austria as part of the dunning procedure for monetary claims. The purpose of a payment order in Austria is comparable to that of a German dunning notice ("Mahnbescheid"). If no objection is lodged within four weeks, the payment order comes into force and can be enforced.

A payment order is issued, if a claim for payment is aimed exclusively at the payment of a sum of money not exceeding EUR 75,000. The court issues this order without prior oral proceedings or hearing the debtor. Debt collection, debt enforcement and payment order are therefore effective means of getting your money quickly as long as the debtor is still solvent.

When is a payment order not issued?

A payment order cannot be issued if:

• the claim is to be dismissed on formal grounds,

• the claim is not yet due or legally enforceable,

• the debtor's whereabouts are unknown or they are abroad,

• the claim is inconclusive in terms of content.

The court does not examine on its own initiative whether the claim is actually justified – this is only dealt with in the event of an objection.

What is an objection to the order for payment?

The debtor can lodge an objection to the payment order within four weeks after effective delivery of the order. If an objection is lodged, the payment order ceases to be valid, unless it is only lodged against a partial amount. If the objection is lodged too late, it will be rejected by the court.

What if no objection is lodged against the payment order?

If no objection is lodged, the order for payment becomes legally binding and can be enforced. In this case, the claimant can initiate enforcement measures to collect the claim, including interest and legal costs.

Statistically, objections are raised in only about 9% of cases, while 91% of payment orders become legally binding and enforceable.

Debt collection and enforcement – lawyer in Vienna

Debt collection, debt enforcement and payment order in Austria are quite straight-forward: You can seek legal assistance in asserting an outstanding claim (debt collection and debt recovery) by means of a dunning lawsuit and obtaining a payment order. Your attorney will also enforce legally binding and enforceable enforcement orders (judgments) in enforcement and insolvency proceedings.

Lawyer for debt collection and debt enforcement in Vienna

Lawyer Dr Simon Harald Baier LL.M. and his law firm in Vienna will be happy to assist you throughout Austria in asserting and enforcing your outstanding claims.

Contact us for a legal assessment of your debt situation – law firm for debt collection in Vienna.