Unpaid invoices are not a bookkeeping problem. They are a liquidity problem.
And with every month they become harder to enforce — not because the law changes, but because the debtor's ability to pay changes and the evidence fades.
Those who send reminders consistently and early are paid more often. Not because of the legal effect, but because of the order of priority: a debtor short of cash pays first the creditors with whom inaction has consequences.
Once in default, the debtor owes more than the invoice amount: default interest, the costs of pursuing the claim and, in business transactions, an additional flat fee of 40 euros. The interest rates differ considerably between transactions involving consumers and those between businesses — to the detriment of the business debtor.
Default occurs at the latest thirty days after the due date and receipt of the invoice — for consumers, however, only if the invoice pointed this out. A reminder can also trigger default earlier. That is why the first reminder should be more than a courtesy note.
If the debtor does not respond, two routes lead to an enforceable title (Titel):
The summary payment procedure (Mahnverfahren) is fast, formalised and inexpensive. It does not examine the merits of the claim. If the debtor files an objection, the matter moves into contested proceedings. If not, an enforcement order (Vollstreckungsbescheid) is issued — a fully valid title.
A lawsuit is the route when an objection is to be expected or the claim requires substantiation. It takes longer, but settles the matter conclusively.
Which route is right depends less on the amount than on whether the debtor genuinely disputes the claim or simply does not pay.
A common misconception: once there is a judgment, the matter is closed. In fact it is only beginning. The title entitles you to enforcement — garnishment of bank accounts, garnishment of wages, the bailiff, the debtor's declaration of assets (Vermögensauskunft). Where there is nothing to recover, the title does not help for the time being.
But it does help in the long run. Claims established by a title only become time-barred after thirty years. Financial circumstances change. A title that comes to nothing today may be enforceable in ten years. That is why we recommend obtaining a title even when enforcement seems hopeless at the moment.
The standard limitation period is three years, counted from the end of the year in which the claim arose. In practice this means: every year on 31 December, all claims of an entire year become time-barred at a single stroke.
For clients with larger portfolios of receivables, we check in the autumn what is at risk of lapsing at the turn of the year, and suspend the limitation period in good time. It is unspectacular and regularly saves five-figure sums.
Instead of individual engagements, we can take over the entire collection process on request: defined reminder stages, fixed deadlines, automatic handover to court proceedings. You retain control over every step, but do not have to initiate it yourself.
The reverse case belongs here too. We take action against unjustified reminders, excessive collection agency fees and orders for payment (Mahnbescheid) based on claims that do not exist — and we do so within the objection period stated on the order for payment, which is easily overlooked.
Fees under the German Lawyers' Remuneration Act (RVG), based on the amount of the claim. The economically decisive point: if the debtor is in default, they owe the costs of pursuing the claim. With justified claims against solvent debtors, the debtor therefore regularly ends up bearing our fees as well.
After a reminder sent once payment is due (§ 286 Abs. 1 BGB), or without a reminder if a payment date is fixed by the calendar (§ 286 Abs. 2 Nr. 1 BGB). At the latest, default occurs 30 days after the due date and receipt of an invoice — for consumers only if the invoice points out this consequence (§ 286 Abs. 3 BGB).
Five percentage points above the base interest rate (Basiszinssatz) if a consumer is involved, and nine percentage points above the base interest rate for transactions between businesses (§ 288 Abs. 1 und 2 BGB). In business transactions, a flat fee of 40 euros is added (§ 288 Abs. 5 BGB).
If the debtor is already in default when the lawyer is instructed, the debtor must reimburse the costs of pursuing the claim as damages for default (§§ 280 Abs. 2, 286 BGB). With solvent debtors, the debtor therefore regularly ends up bearing the lawyer's fees.
The order for payment states an objection period of two weeks from service (§ 692 Abs. 1 Nr. 3 ZPO). An objection is still possible after that, as long as the enforcement order has not been issued (§ 694 Abs. 1 ZPO); a late objection is treated as an objection to the enforcement order (Einspruch) (§ 694 Abs. 2 ZPO). Against an enforcement order, an Einspruch can still be lodged within two weeks (§§ 700, 339 ZPO).
Claims established with final and binding effect — for example by a judgment or an enforcement order — only become time-barred after 30 years (§ 197 Abs. 1 Nr. 3 BGB). Excepted are recurring payments falling due in the future, such as ongoing interest; these continue to become time-barred after three years (§ 197 Abs. 2 BGB). A title can therefore make sense even when there is nothing to recover from the debtor at the moment.
Through measures that suspend the limitation period — in particular the service of an order for payment or the filing of a lawsuit (§ 204 Abs. 1 Nr. 1 und 3 BGB); negotiations about the claim also suspend limitation (§ 203 BGB). The application must be filed in good time before 31 December.
Answers as of October 2026. They state the general statutory rule; individual cases may differ.
This text is a general overview and does not replace advice on your individual case. Which rules apply to your matter depends on circumstances that can only be clarified in a consultation.
