Cost reduction in the realization of receivables through statutory pledge of rights
Using pledges of rights strategically — legally compliant, efficient, assertive.
Statutory pledges of rights arise directly and automatically by law as soon as a debtor defaults on payment — without any further (court) action or contractual agreement. If you act consistently at this moment and commission us as publicly appointed, sworn auctioneers, you will realize your claims as quickly as possible, in a legally secure and economically sensible manner.
The legally enshrined realization based on a pledge of rights in accordance with Section 1235 BGB by public auction is an economically viable alternative to lengthy dunning and legal proceedings — it saves time, reduces costs and prevents risks of damages on the part of the management (see: Duty to minimize damages
For the creditor, a payment default is an exceptional situation — for us, it is daily practice. Our proven structures guarantee an efficient and cost-optimized process. We reach thousands of potential buyers through our network. The public auction — required by law to protect the rights of all parties involved — ensures that the highest price in line with the market is achieved.
However, no two cases are the same. Each realization is a case-specific measure that also takes into account the interests of the debtor, taking into account Section 254 BGB. The costs incurred depend on the type, scope and economic potential of the pledged property — always with the aim of achieving appropriate realization proceeds. In suitable cases, even legal expenses insurance will cover the costs.
Cost savings
By involving the auctioneer in good time, you save on the cost of:
- Collection agencies
- Debtor identification
- Attorney’s fees
- Dunning notices
- Legal proceedings
- Court and out-of-court settlements
- Advances and fees for bailiffs
- Interest because you do not have to wait for the installment payments agreed with the debtor by the bailiff
- Expert opinion.
Cost information
The auctioneer regularly receives a premium from the buyer.
Note: The Auctioneer shall be personally liable without limitation for culpable breaches of duty. The client cannot release the auctioneer from this liability for damages. The auctioneer’s remuneration is therefore always also a liability remuneration.
Important to know: All costs incurred by the creditor from the entire procedure can be offset against the auction proceeds.
Expenses that cannot be realized can be claimed for tax purposes by the creditor.
