Debt Collection

No Win No Fee

The Intelligent Debt Recovery Service provided by the English-speaking lawyers on the Advocate Abroad network allows you to take control and to begin the process of recovering outstanding debts in Spain – regardless of where you are located in the world.

Furthermore, you can do so without having to make any advanced payment for the services of any kind when choosing the no-win-no-fee option*.


The Debt Recovery Service

The primary objective of the Intelligent Debt Recovery System is to obtain repayment of monies owed with the minimum investment of further resources. In the best case scenario you don’t need to risk ANY further capital to recover the debt!

Initially the focus is on delivering fast and lower cost results that reduce the need for expensive court actions.

Your debt is pursued by experienced lawyers contacting the debtor both by telephone and sending letters of demand for the recovery of the debt. The letter of demand serves two purposes.

First, it warns the debtor of your intention to begin legal proceedings should payment not be made and gives the debtor one more opportunity to pay.

Immediate payment of the debt is, of course, the best case scenario.

Secondly, if the non-judicial route is unsuccessful, the letter is a document which may be tendered in evidence during court proceedings as written proof of your claim of the debt owed and your attempt to settle the matter.


Negotiation With Spanish Debtors

Should the need arise, the lawyers on the Advocate Abroad network are experts in carrying out negotiations with debtors and will negotiate on your behalf for the return of the debt and will manage a debt plan with the debtor where you have provided us with full prior authorisation.

Obtaining all of the monies that you are owed is of course the primary objective here though you may decide that obtaining a percentage or the full amount over a period of time are acceptable alternatives.

In any case, for carrying-out the initial engagement with your debtor as well as negotiating with debtors on your behalf we offer the following payment options:



No Win – No Fee Option

With this plan you pay nothing at all to initiate the process started.

In the event of successfully recovering all or part of the debt a commission rate of 22% + IVA of the amount recovered is charged.

Upon successfully recovering all or part of the debt the minimum charge in any case will be €350 + IVA for the work carried-out.

Small Down-Payment Option

Here you make an upfront payment, based on the complexity of the case, at the beginning of the process with a final payment of 12% + IVA of the full amount successfully recovered.

This Debt Recovery Service can be tailored specifically to meet the individual needs of each creditor. It is quicker and less expensive than mercantile agents who cannot appear in court or draft court documents.

Both of these options presuppose that Court proceedings are not required. If Court proceedings are required then, under Spanish law, a Procurador is required and potentially court taxes (for companies only), both of which vary in accordance with the amount of debt that is to be recovered.

Financial Report Before Going to Court

Going to court is a last resort but one that can be necessary in order to obtain a successful outcome. We should only really consider going ahead when all of the information relating to the debtor tells us that this will be a worthwhile strategy.

It is possible to obtain valuable information about the financial position of Spanish individuals and companies from a number of important sources. This would include:

  • The commercial register which contains a host of information about companies such as fixed assets and annual returns;
  • The property register which holds information on any assets registered in the names of individuals including sole traders;
  • The RAI register which contains valuable reports of any previous failure by the company to pay creditors

Advocate Abroad can arrange for a report to be drawn-up and a recommendation to be provided – by specialist lawyers – on whether to pursue the debtor in the Spanish courts.

It is strongly recommended to obtain a financial report before proceeding to take court action.


Court Process

If the measures taken extra-judicially fail to recover the debt and the financial report (recommended) suggests that it would be worthwhile to continue pursuing the debtor, the next stage is to bring the matter before the courts.

This effectively means using the ‘Proceso Monitorio’ which is a special court process specifically set-up for the speedy resolution of outstanding debts which cannot exceed €250,000.

Upon presentation to the court of the petition together with supporting documentary evidence (contracts, invoices etc) the court will decide whether there is a sufficiently substantial case for the debt to be repaid.

The debtor is then informed by the court of the petition and at this stage there are three possible outcomes:

1. Debtor Agrees To Pay The Debt

In 45% of cases brought via the ‘proceso monitorio’ the matter is resolved at this point with the debtor agreeing to pay the creditor the amounts owed.

2. Debtor Does Not Respond or Appear in Court

If the debtor fails to respond to the court action or doesn’t turn-up at the hearing then the judge may place an embargo on any assets or income of the debtor to force repayment of the amount owed. 39% of cases are resolved in this fashion.

3. Debtor Opposes Payment of the Debt

If within a timeframe of twenty days the debtor opposes the action and does so in writing then it becomes necessary for the court to hear arguments from both sides. The debtor will require documentation to support their case. The debtor opposes the debt in this way in 16% of cases.


Legal Representation in Court

The English-speaking lawyers on the Advocate Abroad network are especially well placed to assist in any court action and will be able to provide you with all of the legal support in English that you require to bring a successful lawsuit via the Spanish Courts.


Other Costs

Other charges that will need to be considered include the cost of sending, legalising and translating any documents not written in Spanish that will be needed to support your claim that a debt is owed.


Other Considerations

It is extremely useful if you know the current location of the debtor and have documentary evidence to support your claim. This might be a document signed by the debtor to that effect or it might be a document that is ordinarily issued in the course of business dealings such as invoices, delivery notes or other such items.


Who are the lawyers providing this service?

Highly experienced and regulated lawyers across Spain and the islands are responsible for this service. You can find more information on the individual law firms by going to our: lawyer locator section.


Innovative Support Services – Free of Charge

If you decide to contract debt recovery services from the lawyers on the Advocate Abroad network you will also benefit from the additional protection afforded by our innovative support services that are included free of charge.

These support services include:

  1. Documentation detailing regulatory status of your lawyer.
  2. Fees within guidelines established by Law Societies in Spain.
  3. Legal fees specified in advance and legally guaranteed.
  4. Services levels agreed in advance and guaranteed.
  5. All lawyers must hold professional indemnity insurance.
  6. Lawyers’ standard of English checked.
  7. Continuous quality controls and reviews.

* Does not include costs involved with Court Proceedings