Debt Collection in Spain
When the need for legal protection arises, the exercise of these rights, must comply with the strict procedural mechanisms laid down under our legal system.
In the field of Private Law judicial proceedings provide an indispensable basis to protect the exercise of such rights, to adjudicate on the origin or legality of the various parties’ claims and to preserve some of the fundamental principles of our legal system such as contractual freedom, private ownership, the safeguarding of commercial trading and the protection and promotion of credit facilities; the real engine of the economy, and the collateral provided for this.
The current prolonged economic and political crisis, that at the time of writing, we continue to find ourselves immersed in and which shows little sign of abating in the short term, has both undermined and called into question the established reputation and justification for certain institutions and the foundational basis for some of the legal principles previously referred to.
One of the inevitable consequences arising from the slowdown and deterioration in the economy, has been rising unemployment, the decreased purchasing power of households and businesses as well as an increasing level of indebtedness. The creditor’s position is not limited – in a simplistic and all too frequently recited mantra – to financial institutions or large companies; but on the contrary it is in the interest of all economic operators to have in place appropriate instruments to obtain effective and rapid legal redress, through the appropriate judicial or extrajudicial channels, to vindicate the necessary satisfaction of our rights.
This web has undertaken the undoubtedly meritorious challenge of facilitating access and understanding of the currently enforce procedural rules, to thereby improve the reader’s understanding in a flexible and practical manner, with regard to the abundance of legislation governing this area. Thus, whoever navigate in this site can avail of a practical and effective tool for the protection of our rights to collect outstanding debts and as the case may be to seek appropriate debt relief by way of civil or commercial proceedings.
This page, offer an in depth analysis of the appropriate legal procedures that can be employed to exercise individual rights, bearing in mind the idiosyncrasies of each of the procedures in terms of the nature of the relevant claim and its formal basis; the nature of the debt; the guarantees that may have been made in its favor; without neglecting the particular details that can arise in the course of an all too common procedure such as bankruptcy; as regards the public status or not of the debtor against whom the court proceedings are brought and the fundamental rules governing the various stages of the process.
Of particular interest, in my opinion, is the description of the regulations governing mortgaged and pledged assets and with regard to interim relief, in both cases given their relevance for the protection of effective debt collection.
Indeed, maintaining the mortgage and pledge as guarantors of financial transactions and instruments of acknowledged utility gives confidence to domestic and foreign investors alike, and should be confirmed both in terms of legislation and case law. It follows that it is essential to possess accurate and up to date knowledge of the possibilities arising from the enforcement of security interests, as a condition for the precise and effective employment of these procedural weapons and in attempting to establish the financial and legal limits with regard to the recovery of debts due that are the object of a claim.
Equally the possibility of recourse to extrajudicial means of conflict resolution – such as mediation or arbitration – should not be forgotten as an effective alternative to time consuming court proceedings in attempting to achieve an effective solution.
We hope that consultation and perusal of this site, will provide you with as much useful information as possible and that it will allow you to come to terms with procedural mechanisms.