Debt Recovery and its Judicial Execution in Spain

Debt Recovery and its Judicial Execution in Spain

The recovery and enforcement of foreign debts in Spain offer significant advantages. They optimize financial recovery, strengthen trust in international transactions, and ensure compliance with obligations. These processes, backed by Spanish legislation, provide an effective avenue for resolving cross-border financial disputes, fostering robust commercial relationships.

Debt Enforcement in Spain: What does the recovery process involve?

The execution of debts in Spain is a complex legal process that involves the recovery of debts incurred both in our country and abroad, but whose debtor is a natural or legal person who, due to some of the options granted by law, may be sued in Spain.

For example, when a Spanish company makes a B2B purchase of goods from a foreign company, but after receiving the merchandise it does not proceed to pay for it. The same could happen in the context of an unpaid B2B or B2C service provision.

The lawyers that make up the BCVLex team are experts in cross-border debt recovery and enforcement procedures in Spain, which are governed by a series of national and international regulations that seek to facilitate credit recovery.

Steps in a Foreign Debt Enforcement Process in Spain

Far from treating all cases in a standard manner, at BCVLex we consider it essential to analyze each case separately; recent debts do not require the same treatment as old ones, nor do debtors in complicated circumstances arisen than “professional debtors”, nor do solvent debtors require the same treatment as insolvent ones.

To initiate the steps of a foreign debt enforcement process in Spain, it is necessary to proceed with:

  • Determination of the debt to be recovered: The first step is the clear determination of the outstanding debt. This involves collecting all relevant documentation that can prove the debt, such as contracts, invoices, payment agreements and any correspondence related to the debt.
  • The assessment of jurisdiction: Before starting the execution process, it is crucial to determine the competent courts; that is to say, in which places we can launch the claim. Said jurisdiction is determined by prior contractual agreements, the residence or registered office of the debtor, or any other legally provided forum.
  • Debt Registry: In some cases, and after investigating the debtor’s assets, it may be advisable to seize his assets.
  • Friendly debt recovery: At BCVLex we give priority to the needs of our client, and based on them, we can proceed with the attempt to recover the debt amicably, either through negotiation between professionals or directly with the debtor.
  • ADR: Alternative dispute resolution consists of a procedure that allows conflicts between individuals, professionals or companies to be resolved outside of court, with the help of an impartial and independent dispute resolution body; BCVLex has international mediators and arbitration experts on its team.
  • Judicial Process: When friendly attempts to recover the debt do not proceed, the corresponding judicial procedure will begin by filing a lawsuit before the competent Spanish court, which, depending on the amount of the debt and the debtor’s defense, will be resolved with a specific type of process.
  • Judgment and execution: When the competent court issues a ruling in favor of the creditor and it becomes final, after twenty business days a forced execution process can be initiated by seizing bank accounts, real estate or other assets.
  • Recognition of foreign judgments in Spain: In some cases, it may be necessary to obtain recognition of a foreign judgment in Spain before starting the enforcement process. Again, it is necessary to know in detail the legal mechanisms established to guarantee the validity of international judicial decisions in Spain

Experts in extrajudicial and judicial procedures for the execution of debts in Spain.

It is important to note that the process of executing national or foreign debts in Spain will vary depending on the nature of the debt, the debtor and the specific circumstances of the case. Specialized legal advice is essential to follow the appropriate procedure in order to obtain favorable results and recover the debt.

Do not hesitate to contact BCVLex. Our trilingual specialists (English-French-Spanish) will study your debt recovery case in Spain.