International collections
U.S. Debt Collection for German Companies
Updated 2026-10-24
When a U.S. company owes your German business money, start with amicable collection by a U.S. agency that verifies the debtor, sends a formal demand and negotiates directly with its management. Most collectible accounts resolve without court. If the debtor refuses, a lawsuit is generally filed in the U.S. state where the debtor is located. Fees are usually on contingency, and German procedures such as the Mahnverfahren do not reach U.S. debtors.
| Who this is for | German businesses owed money by U.S. businesses (B2B only) |
|---|---|
| Where suit is filed | Generally in the U.S. state and county where the debtor is located |
| Pricing | Contingency fee on amounts recovered; legal costs quoted in advance |
| Legal costs rule | Each side usually pays its own lawyers unless a contract or statute provides otherwise |
| Time difference | U.S. Eastern time is 6 hours behind Germany; Pacific time is 9 hours behind (most of the year) |
| Language | English; we can work from German documents with translation |
Why German procedures do not carry over
German creditors are used to an efficient court payment order procedure, statutory default interest and recoverable collection costs. Those tools are part of German law and German courts. When the debtor is an American company with no assets in Germany, the claim usually has to be pursued in the United States, under U.S. procedure, and often under the law of the U.S. state named in the contract or connected to the deal.
That does not make U.S. collection slow or uncertain. It does mean the strategy is different. The first step is negotiation by a U.S. agency, and the second, if needed, is a lawsuit filed by an attorney in the debtor's state.
How amicable collection works
- Verify the debtor's exact legal entity through state business registries
- Check for bankruptcy filings, existing judgments and liens
- Send a formal written demand with your invoices attached
- Call the owner, CFO or accounts payable lead who can approve payment
- Negotiate payment in full or a written plan, with settlements sent to you for approval
- Provide a written legal recommendation, with costs, if the debtor refuses to pay
Suing a U.S. company
A collection lawsuit is generally filed in the state, and usually the county, where the debtor is located, unless your contract names another court. Each of the 50 states has its own court rules, limitation periods and enforcement tools, so the case is handled by an attorney licensed in that state. Limitation periods for contract and sale-of-goods claims often fall between three and six years, but they vary, so older invoices should be placed quickly.
Two points tend to surprise German companies. First, U.S. courts generally follow the American rule: each side pays its own lawyers, win or lose, unless a contract clause or statute shifts fees. An attorney fee clause in your terms can therefore matter a great deal. Second, both Germany and the United States are parties to the UN Convention on Contracts for the International Sale of Goods. Unless your contract excluded it, the CISG may govern a cross-border sale of goods, which can affect issues such as notice of defects and interest. Your U.S. attorney will check this.
Pricing
Amicable collection is billed on contingency, typically somewhere between 15% and 50% of the amount collected depending on the age, size and difficulty of the account. You pay nothing if nothing is recovered. Legal escalation carries a higher contingency rate plus court costs such as filing and service fees, which are quoted to you and require your written approval before suit. Recovered funds are remitted by international wire, usually in U.S. dollars unless agreed otherwise.
Documents to send
- The debtor's legal name, address and contact persons
- Contract, order confirmation or general terms, including governing-law and jurisdiction clauses
- Invoices and account statements
- Delivery notes, bills of lading or proof of services
- Correspondence showing the debt was acknowledged or not disputed
- Any German judgment already obtained against the debtor
Language and time zones
Your documents can be in German. We will tell you which ones need translation, usually only those that become evidence in a lawsuit. Reporting is in English and in writing, so your team can review progress during German business hours. If you already hold a German judgment, its recognition in the U.S. depends on the law of the state where enforcement is sought; most states have adopted a version of a uniform act on foreign money judgments, and a U.S. attorney should confirm the route.
Frequently asked questions
Can I use the German Mahnverfahren against a U.S. company?
In practice it rarely helps against a U.S. company with no assets in Germany, because the resulting order would still need to be enforced in the United States. Most German creditors are better served by U.S. collection and, if needed, a lawsuit in the debtor's state.
Can I recover my legal costs in the U.S.?
Only if your contract or a statute allows it. U.S. courts generally make each side pay its own lawyers. An attorney fee clause in your terms can change that, so send us your terms with the file.
Does the CISG apply to my claim?
It may, if the claim arises from a sale of goods between a German and a U.S. business and the contract did not exclude it. A U.S. attorney will review the contract if the file goes to court.
Do my documents need to be translated?
Not for amicable collection in most cases. If a lawsuit is filed, key documents used as evidence will need English translations, and we will tell you which ones.