International collections
Collect a Debt from a Company in Germany
Updated 2026-10-24
To collect from a German company, use a German-speaking partner who confirms the entity in the commercial register, sends a formal reminder and demand, and negotiates with the managing director or accounts team. Many German debtors pay at this stage. If not, a court payment order or lawsuit in Germany is often more practical than enforcing a U.S. judgment, which requires a separate German court ruling. Check options with German counsel.
| Language | German |
|---|---|
| Currency | Euro (EUR) |
| Legal system | Civil law (German Civil Code and Code of Civil Procedure) |
| Enforcing a U.S. judgment | Needs an enforcement judgment from a German court; reciprocity and public policy are reviewed, punitive damages generally not enforced |
| Company records | Handelsregister (commercial register) and insolvency notices |
| Typical amicable timeline | Often 30 to 90 days |
Collecting in a formal, document-driven market
German companies tend to respond to precise, well-documented demands. A reminder that names the invoice numbers, dates, amounts and contract terms, written in German, is taken more seriously than a generic letter in English. Disputes are usually raised in writing, so the response to a demand often tells you quickly whether the debtor is short of cash or genuinely contests the claim.
We start by confirming the legal entity in the commercial register. German company names carry a legal form such as GmbH, AG, UG or GmbH & Co. KG, and the form affects who is liable. We also check the public insolvency notices, because an insolvency filing changes how the claim must be handled.
Our German collection process
- Verify the company, legal form, registered seat and managing directors
- Check public insolvency notices before contact
- Send a formal reminder and demand in German through a local partner
- Follow up by phone and email with the accounts team or managing director
- Negotiate full payment or an installment agreement for your approval
- Prepare a legal recommendation with costs if the debtor will not pay
Interest and costs under German law
If German law governs the contract, a business debtor in default generally owes statutory default interest above the base rate and a fixed flat fee for collection costs. The exact rate and whether further costs can be claimed depend on the contract and the facts. If your contract is governed by a U.S. state's law, those German rules may not apply. A German lawyer can confirm what can be added to the claim.
Legal options in Germany
Germany offers a court payment order procedure (Mahnverfahren) for uncontested money claims. It is largely paper-based and can be started by a foreign creditor, with a central court in Berlin handling applications from creditors outside Germany. If the debtor objects, the case moves into ordinary court proceedings. For a claim that is clear and undisputed, this can be an efficient route.
A U.S. judgment, by contrast, cannot be enforced in Germany directly. The creditor must ask a German court for an enforcement judgment. The court does not retry the case, but it checks conditions such as whether the U.S. court had jurisdiction under German standards, whether the debtor was properly served in time to defend, whether reciprocity exists with the U.S. state concerned and whether the result offends German public policy. Punitive damages and some cost awards are commonly refused. Because of these checks, many creditors find it simpler to bring the claim in Germany from the start. German counsel should advise which route fits your file.
Documents to have ready
- Contract or signed order confirmation, including governing-law and jurisdiction clauses
- Invoices with VAT details where applicable
- Delivery notes or acceptance records
- Written correspondence showing the debt was not disputed
- German translations of key documents, if legal action is likely
Practical tips for U.S. exporters
Check your terms for a retention of title clause. Sales to German buyers often include one, and it can give you a claim to goods that have not been paid for, though its effect depends on the wording and on whether the goods have been resold or processed. Also confirm which law and which courts your contract names. A clause choosing German courts, or a U.S. forum, shapes every legal option above.
Time zones matter less than you might think. Germany is six hours ahead of U.S. Eastern time, and our partners handle calls during German business hours, then report back to you in your morning.
Frequently asked questions
Is a U.S. judgment enforceable in Germany?
Only after a German court issues an enforcement judgment. The court checks jurisdiction, proper service, reciprocity and public policy, and punitive damages are generally not enforced. Many creditors sue directly in Germany instead. Ask German counsel which route is better.
Can a foreign creditor use the German court payment order procedure?
Yes. Creditors outside Germany can apply for a payment order, and applications from abroad are handled centrally. If the debtor files an objection, the case continues as an ordinary lawsuit.
What happens if the German company files for insolvency?
Once insolvency proceedings open, individual collection stops and creditors file their claims with the insolvency administrator, usually within a deadline set by the court. We check public insolvency notices before and during the file so you can register the claim in time.
Do I need to write to the debtor in German?
It is not strictly required for amicable collection, but it helps. Our partners write and speak in German, which tends to get faster and more precise responses.