Could you provide an overview of the legal framework for debt collection in Spain? Yes. I will begin by clarifying that, in Spain, the collection of a debit is a right that any person has, whether natural person, legal entity, or public or private entity, for the fact of having performed a service. This person – the creditor – can request payment from the debtor out of court before taking the next stop and going to court. This is an amicable claim, as an action prior to going to court. Acting in this way is in a point in favour of the creditor, since it leaves a record that they have tried it orally; something that, for the judgment, favours them. What are the main laws and regulations governing debt collection practices? The legislation that protects those who suffer from delinquency, i.e. the nonpayment of an amount by another, is the articles of the Civil Code. Two of them stand out in this area: Article 1101 states that anyone who “incurs in fraud, negligence or default in the fulfillment of his obligations” from that moment has the responsibility to compensate for the damages caused. In addition, and complementing the above, Article 1096 determines: “when what is be delivered is a specific thing, the creditor may require the debtor to make the delivery”. With both, Spanish law gives full right to verbally request what is owed to you. 64 LAWYER MONTHLY NOVEMBER 2023 Proper Debt Collection Practice in Spain Thought Leader Business continuity and many individual livelihoods rely on the timely payment of debts. When payment is not forthcoming, the subsequent collection of debt by creditors is invariably subject to a highly constrained legal process. Manuel Hernández, managing partner of Vilches Abogados, answers our questions about the practice of debt collection in Spain and provides insight on proper conduct.
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