Initiation of the realization of receivables — quick guide.
Stage 1
If the debtor does not meet the payment deadline agreed on the invoice, notify him by registered letter/return receipt that you will exercise your statutory pledge of rights in accordance with § 1220, 1234 BGB and threaten public auction in accordance with § 1235 BGB with one month’s notice. In the case of commercial debtors, the deadline is reduced to one week in accordance with § 368 HGB. Experience has shown that many debtors pay after receiving this letter. If you do not know the debtor’s address, the threat of sale can be omitted (because it is not necessary). You are not obliged to find out the debtor’s current address.
Stage 2
If the debtor does not pay within 14 days of receiving your letter (one week in the case of commercial debtors), you can initiate the auction procedure simply and free of charge via our website. You send us the relevant data with all known value-determining information (e.g. mileage, manufacturer, model, year of manufacture, equipment, MOT, accident damage, vehicle documents available yes/no, etc.) about the items to be auctioned. To advertise the public auction, we require photos in jpg format; cell phone photos are usually sufficient. In the case of motor vehicles, we require images of the front, rear, both sides and the interior. Once we have received your information, we will send you the auction contract. As soon as you have signed the contract and sent it to us, we can start working for you immediately. We must report the public auction to the Chamber of Industry and Commerce and the public order office. The debtor must also be informed of the upcoming auction date. Some debtors pay as soon as they receive our letter.
Level 3
As required by law, we will sell the pledged property for you by public auction. The proceeds of the auction must be offset against your claim and all costs incurred by you in the proceedings. Any excess amount must be paid to the deposit office of the competent local court.
In our industrialized society, objects and things quickly lose value over time. That’s why the rule is: don’t wait too long to collect. The faster you take action, the higher the proceeds from the auction.
