More and more companies in Barcelona are opting for internationalisation and the export of goods or services. However, along with the opportunities for growth in new markets, there are also significant risks, such as non-payment by foreign clients. Claiming an international debt can be a complex process, as different legal systems, languages, international regulations and cultural barriers are involved.
In this article, BUFET GÓMEZ FERRÉ, lawyers specialising in international debt claims, explains how to claim a debt from a foreign company from Spain, what legal channels exist for exporting companies, and what the most effective steps are for recovering non-payments outside the country, especially if you operate from Barcelona.
Legal options in Spain to claim international debts
There are different legal mechanisms for claiming international debts, both within the European Union and in third countries, and the choice of the most appropriate procedure will depend on several factors: the debtor’s country, the existence of a contract with a jurisdiction clause, the type of commercial relationship and the documentation available.
Below, we explain the main legal options in Spain for claiming non-payment in exports and the available routes with greater guarantees of success depending on your case.
1. European order for payment procedure: a quick solution for debts within the EU
The European order for payment procedure is a particularly useful tool for claiming uncontested debts between companies located in different countries of the European Union (except Denmark). This procedure allows the creditor to obtain an enforceable title that is directly valid in the debtor’s country, without the need to go through an ordinary court case. It is ideal for claiming clear, overdue and enforceable debts, such as unpaid invoices for services or products delivered.
2. Ordinary court proceedings in Spain: when the contract allows for it
If there is a signed contract between the parties that establishes the jurisdiction of the Spanish courts, an ordinary lawsuit can be initiated in Spain, even if the debtor is domiciled in another country.
In this case, it will be necessary to file a claim in the commercial courts of the competent city (for example, in Barcelona if it is the domicile of the creditor company), accompanied by all the documentation proving the debt. This process may take longer, but it is advisable when the debtor contests the debt or when the European order for payment procedure cannot be used.
3. Enforcement of foreign judgments in Spain
Another legal option available is the enforcement of a foreign judgment in Spain. This occurs when a favourable court decision has already been obtained in the debtor’s country and you wish to recognise and enforce it in Spain to recover assets or funds.
In this regard, the process will depend on whether the country in question belongs to the EU, has a bilateral agreement with Spain or is a party to the 1958 New York Convention on the Recognition of Foreign Judgments. The enforcement of a foreign judgment may require an exequatur procedure, whereby a Spanish court validates the judgment. This mechanism is effective if the debtor has assets or bank accounts in Spanish territory that can be seized as security for payment.
In any of these legal avenues, our international debt claims lawyers could assist you in assessing theviability of any of them,
ensuring that deadlines are met, evidence is properly presented and theappropriate legal follow-up is carried out.
Recommended steps for successfully claiming an international debt
Once the most appropriate legal route has been chosen, it is essential to follow a number of recommended steps to increase the chances of success in recovering the non-payment. Claiming debt from a foreign company requires a well-structured strategy that will generally take the following process:
1. Friendly and formal communication
Before resorting to legal action, it is recommended to send a formal request for payment, preferably in the debtor’s language (or at least in English, which is widely accepted in international trade agreements), detailing the outstanding debt, the due date and any penalties for late payment. The purpose of this communication is to provide the debtor with a final opportunity to settle the debt voluntarily.
It will be necessary to ensure that the letter is delivered in a formal manner, whether by registered mail, bureaufax or any other means that provides reliable proof of receipt.
2. Gathering evidence: Essential to support the claim
Once the first attempt at amicable settlement has been made, the next step is the collection of evidence. For any legal action to be effective, it is essential to have documentation to support your case. This includes:
- Signed contracts: It is necessary to have the original contract setting out the payment terms and conditions agreed between both parties.
- Unpaid invoices: Unpaid invoices are a clear testimony of outstanding debt. Make sure you have a copy of each one.
- Correspondence: All previous correspondence between the parties, whether by email, telephone or any other means, should be retained to prove that an attempt was made to resolve the dispute amicably before resorting to litigation.
Having all this evidence strengthens your position in a possible litigation, as the judge will be able to prove the existence of the debt and the agreed conditions for its payment.
3. Out-of-court complaint: The next step before going to court
If amicable communication is unsuccessful, the next stage is the out-of-court claim, in which a formal demand for payment letter is sent to the debtor informing him that if he does not comply with the payment within a certain period of time, legal proceedings will be initiated.
4. Legal action: The legal remedy in case of non-payment
If after the out-of-court claim the debtor still does not pay the debt, it is time to resort to a judicial claim. This process may vary depending on the country in which the debtor company is located, as each jurisdiction has its own regulations and legal procedures.
If the debtor is in the European Union, the European Order for Payment Regulation provides a simple and quick judicial mechanism for claiming cross-border debts. In other cases, such as in countries outside the EU, the 1958 New York Convention on the Recognition and Enforcement of Foreign Judgments should be considered, which may complicate matters a little more.
5. Recognition and enforcement of the international judgment
After winning a judgment, the next move is the enforcement of the judgment. After obtaining a favourable ruling from the court in the debtor’s country, you must ensure that the debt is properly enforced in that country, which may involve seizing the debtor’s assets or using similar mechanisms to secure payment.
In any case, at BUFET GÓMEZ FERRÉ, we have experience in debt collection and we can guide you through this process
to ensure that the procedure is carried out in accordance with the local laws of the debtor’s country. The aim is to obtain a favourable judgement so that the
debt is recognised and enforced and even to put pressure on the debtor to make payment without the need to enter into costly litigation.
Frequent problems and recommendations when claiming non-payment in exports
To prevent claiming an international debt from becoming a complex and tedious process, especially for exporting companies in Barcelona, we recommend that you anticipate the following common pitfalls in order to improve your chances of success.
Communication can become difficult if the debtor does not speak the same language or has different business customs; we recommend adapting recovery strategies to the cultural particularities of the debtor’s country to avoid misunderstandings and improve the chances of success.
Each country has its own legal framework for cross-border debt collection, so it is essential to be familiar with the laws of the debtor’s country to ensure that the proper requirements and procedures are followed. In some cases, it may be necessary to obtain certified translations of documents to make them legally valid in the debtor’s country.
Initiating legal proceedings in another country can involve high financial costs and delays. Legal costs can vary from country to country and you may face additional costs such as legal fees, filing of lawsuits, travel expenses and other expenses associated with litigation.
When the foreign company changes its domicile or goes on the run, finding it can be complicated. Countries often have international cooperation agreements and rules that facilitate this process and, depending on the case, specialised tracking and tracing services may be necessary to increase the likelihood of success.
Frequently Asked Questions
Yes, it is possible to attach assets abroad, but it will depend on the law of the country where the debtor’s assets are located. To do this, you will first need to obtain a favourable judgment in that country or have it enforced through a foreign judgment recognition procedure, such as exequatur if you are outside the European Union, or through the relevant European Regulation if you are inside the EU.
When a foreign company does not comply with your demands for payment or does not respond to formal communications, you can initiate a legal claim. If the debtor is within the European Union, a quick and efficient option is the European Payment Order Procedure, provided that the debt has not been contested. In other cases, it will be necessary to go through the ordinary courts or use international treaties such as the 1958 New York Convention to enforce your rights.
The duration of an export default claim depends on several factors: the country of the debtor, whether there is cooperation from the debtor’s side, the type of procedure used (extrajudicial, order for payment or ordinary judicial) and the complexity of the case. In general, a European order for payment procedure can be resolved in a few months, whereas an international dispute can take longer if it requires translations, recognition of judgments or attachments. Our lawyers will be able to advise you on the estimated time frame depending on your specific situation.
Free Lawyer Consultation – Lawyers specialising in international debt claims
Your company has suffered an export default and you don’t know where to start?
Consult a lawyer free of charge at our law firm in Barcelona. At BUFET GÓMEZ FERRÉ, we specialise in international debt claims and the recovery of export defaults. We offer a free consultation to study your case and guide you on the best legal options.
You can rely on our expertise in international law and cross-border debt recovery, and we have an outcome-based billing model, which means that the collection of our services will be based on the success of the claim, fully adapting to the economic proposals and least-cost policy in your circumstances. Recover what is yours with the backing of our international debt lawyers.