6 July 2026
Loan Recovery in Germany
Loan recovery in Germany can be successfully completed by our lawyers in Germany. Please contact us if you need assistance in debt collection in Germany.
With vast experience in various cases, our debt collection lawyers in Germany can help in loan recovery situations.
| Quick Facts | |
|---|---|
| Legislation applicable to loans | – the German Civil Code (BGB), including the consumer credit rules in Sections 491 et seq. |
Types of loans in Germany | Consumer and commercial loans are available for natural persons, respectively companies. |
Types of loans that can be chased in the case of natural persons | – consumer credits, – overdrafts, – mortgages, – loans issued by non-financial institutions. |
| Types of loans that can be chased in the case of companies | – loans issued by banks, – industrial loans, – investment loans. |
| Who can recover loans in Germany? | – debt collection agencies, – law firms, including our debt collection lawyers. |
| Law to respect in loan recovery procedures | – the Civil Code, – the General Data Protection Regulations (GDPR). |
| Rules to respect when it comes to financial loans | – fair practices when it comes to contacting the debtor, – transparency related to the recovery procedure, – possibility to offer the debtor new payment conditions. |
| Availability of amicable procedures (YES/NO) | Yes, this is one of the most common practices in debt recovery in Germany. |
| How many warnings can a recovery agent send a debtor? | 2 or 3 in the form of dunning letters. |
| Mediation availability (YES/NO) | Yes, it is usually employed in debts associated with commercial loans in Germany. |
| Availability of court proceedings (YES/NO) | Yes. |
| Types of court proceedings | – the expedited procedure, – civil law actions. |
| Debt statute of limitation | 3 years from the end of the year in which the claim arose and the creditor learned of it (Sections 195 and 199 BGB); 30 years for claims confirmed by a final judgment or enforcement order (Section 197 BGB). |
| Possibility to recover debts related to loans contracted abroad (YES/NO) | Yes, in accordance with international regulations and treaties entered into by Germany. |
| Support in loan recovery (YES/NO) | Yes, our debt recovery lawyers in Germany can assist in collecting both personal and commercial loans. |
What are some common types of loans in Germany?
There are several types of loans available for natural persons and companies. The most employed ones are for personal use, as there are several forms of borrowing money. Among these, we mention:
- overdrafts;
- mortgages;
- credit card loans.
Are there any special procedures that apply in loan recovery in Germany?
No, the same procedures as in any other debt collection case.
What are my options as a creditor to collect a loan?
You have 3 options:
- the amicable procedure;
- the payment order procedure;
- the civil lawsuit.
How can I recover an outstanding loan amicably in Germany?
The stages of amicable loan recovery in Germany are:
- the first contact with the debtor during which he/she is informed about the outstanding amount of money;
- then, the agency or lawyer usually sends 2 or 3 dunning letters (this is practice, not a legal requirement) to the debtor in which he/she is asked to pay the remaining amount of money;
- the agency or law firm can also try to contact the debtor by email and/or phone during this stage of the loan recovery;
- if the debtor answers, an amicable settlement can be established and new terms for the debt can be created;
- if the debtor fails to answer, the amicable procedure can be transformed into a legal proceeding which means a judge will rule in such a case.
Our debt collection lawyers in Germany can explain the rights of both creditors and debtors and can assist in amicable procedures related to loan recovery.
Here is also an infographic on this subject:
What does loan recovery through litigation entail in Germany?
Loan recovery in court can be completed in two ways: in an accelerated procedure, which implies obtaining an enforcement order that, if not appealed in a few weeks by the debtor, can be enforced immediately, or in a civil proceeding, which implies the following steps:
- the claimant will first need to file a petition in which the case is presented to the court;
- the judge will then send a notification in which the action against him/her is brought to the attention of the debtor;
- both parties are then invited to submit evidence to sustain their cases. In this case, the defendant can present his/her situation;
- in debt recovery cases, the court will hold at least one hearing; however, more hearings can be held;
- the judge will issue a judgment ordering payment, which serves as the enforceable title for the debt to be recovered.
It is important to note that the seizure of assets is a possibility if the debtor fails to comply with the enforcement order issued by the judge.
Can I apply directly for a payment order or start a lawsuit against a German debtor?
Yes. German law does not require prior conciliation before applying for a payment order or filing a lawsuit, although a reminder is advisable (it puts the debtor in default and avoids cost risks). Before doing so, you can send the debtor multiple notifications on the payment of the outstanding amount. Then, all the evidence can be kept for the initiation of the payment order procedure.
Is there a minimum amount that determines a company to start loan recovery in Germany?
No, the law does not impose any minimum amount. However, cases like multiple failed payments, such as mortgages or consumer loans, are quite common for creditors to start the debt recovery process in Germany. Usually, 2 or 3 missed deadlines can lead to the beginning of the loan recovery procedure.
We also invite you to watch a video on this topic:
What is the fastest way to recover a loan in Germany?
The amicable procedure, if the debtor is willing to cooperate.
How long does it take for the payment order procedure to complete?
If the debtor does not contest the order, the creditor can apply for an enforcement order (Vollstreckungsbescheid) once the 2-week objection period has expired.
Can I reach a settlement with a creditor if I am a debtor and I failed to pay 2 or 3 instalments of my loan?
Yes, you can. However, our German debt recovery lawyers recommend that if you know you will not be able to pay an instalment, you inform the creditor to benefit from an extension of the payment date.
Can a creditor ask for the money to be withheld from my personal bank account?
Yes; however, this normally requires an enforceable title (an enforcement order or a judgment); in urgent cases a pre-judgment attachment is possible.
Are there any assets a creditor can go after, even if it is a small loan?
Yes, if the amount has added up, the court can dispose of other personal assets to be used to repay the debt. This could be your car or any other possession.
What happens if I can no longer pay a loan? Is there any protection measure I can use?
You can file for personal bankruptcy.
What is the law governing loan recovery in Germany?
The primary legal framework includes the German Civil Code (Bürgerliches Gesetzbuch – BGB), which outlines the fundamental principles of contract law and governs the rights and obligations of both borrowers and lenders.
How can you help me in the loan recovery process?
Engaging our experienced lawyers for debt collection in Germany can significantly increase your chances of successful recovery while ensuring that you remain in compliance with local laws and regulations. Their expertise and familiarity with the legal system can expedite the process and protect your interests throughout the journey of loan recovery in Germany.
For assistance in loan recovery, you can rely on our debt collection lawyers in Germany, so do not hesitate to contact us. We will explain every phase of the amicable or court procedure, but most of all we will try to settle any debt collection case in the shortest time possible.