Business debt collection in customer insolvency: what to do before and after the filing

The technical question is when a claim becomes enforceable and which ancillary claims arise. The basis is the due date, default and the contractual agreement, supplemented by the statutory rules on default interest and recovery costs.

This overview does not replace legal advice in the individual case. It does show which points should be settled before any escalation. Companies with a steady volume of receivables benefit from a fixed handover cycle rather than one-off ad hoc instructions. In practice, reliability pays off faster than pressure.

What needs checking is the conclusion of the contract, the service rendered, a proper invoice and the payment term. Only when this chain is unbroken do the consequences of default apply. Against consumers, the notice about the 30-day rule is added.

The debtor also has to be identified unambiguously: correct company name, legal form and address. Mix-ups cause delays in the dunning procedure. In business-to-business trade, nine percentage points above the base rate plus the EUR 40 flat fee are the usual ancillary claims. The thematic core stays the same: what to do before and after the filing.

Interest is calculated to the day from the onset of default on the outstanding amount. The applicable base rate plus the statutory margin is decisive. Where default runs past an adjustment date, the period is calculated in sections.

Partial payments are recorded with their date and reduce the interest amount from the day of receipt. Without that allocation, differences arise that have to be explained later. The larger the volume, the more important standardised data formats and clearly defined service levels become. Standardisation reduces effort here far more than additional checking does.

Inconsistency is the main risk. If dunning levels are applied differently depending on the customer, a pattern emerges that debtors adapt to. Add missing deadlines, unclear amounts and letters with no traceable sender in the system. Small improvements here work through the entire receivables portfolio.

Equally critical: receivables left unmentioned out of consideration for the customer relationship. The amount does not disappear, but the default risk rises. For business customers, a credit check before granting new payment terms is worth the effort. That brings the starting point back into view: what to do before and after the filing.

The practical consequence is changed payment behaviour. Customers who know that deadlines are monitored and default consequences are calculated pay earlier on average, without any dispute arising.

In ongoing customer relationships, clear but factual communication of the consequences works best. Transparency before the due date is more effective than pressure afterwards. Framework agreements should state how partial performance and interim invoices are handled. This care costs minutes and saves days if the matter is ever disputed.