What are the rights and protections that Spanish law grants debtors during the debt collection process? Once the judicial proceeding has begun, the debtor has legal protection, which means that any possibility of seizure of assets to cancel what is owed is paralysed. In addition, you have the right to not have the debt continue to grow. Once the claim is already in process, interest no longer increases the debt already contracted, which is important in case the judicial process is delayed. To respect the debtor’s right to privacy, any information concerning this subject cannot be disseminated without their consent. How does the legal process of debt collection differ between consumer debts and business debts? It does not differ too much. In fact, the steps to follow are the same as I mentioned before. You must claim business debts, in this case with the 66 LAWYER MONTHLY NOVEMBER 2023 About Manuel Hernández Manuel Hernández is the managing partner of Vilches Abogados, a prestigious law firm in the city of Madrid. The firm boasts eight offices in Madrid and a staff of 21 lawyers, cementing Vilches Abogados as a leading law firm in the Spanish capital. Contact Manuel Hernández Vilches Managing Partner Vilches Abogados C. Jorge Juan 78, 5º B (28009), Madrid, Spain. Tel: +34 915 75 90 82 E: manuel@vilchesabogados.es www.vilchesabogados.com You have to arrive at a negotiation with an idea of the worst scenario you can face. is a big mistake that, in the long run, has consequences. Apart from that, it is important to negotiate with a certain flexibility, to take into account the situation of the other party and to try to reach an agreement, either through an alternative way of collection or an increase of the terms, for example. You have to arrive at a negotiation with an idea of the worst scenario you can face, knowing how far you are capable of giving in, always with the idea that it is better to charge a little less or take a little longer than not to charge at all, or not at all. presentation of the invoice or invoices, where the due date is clearly shown. This makes it clear that the company is in breach of one of the conditions of the acceptance of the services, i.e. delivering the payment before a specific day. If no news is received, the next step is to send a burofax requesting payment. It is important to use this means, because it justifies not only the content, but also the sender, addressee and date of sending – the best way to have a legal proof in court. At this point, if the company does not comply, you should take legal action. What legal remedies are available to creditors when attempting to collect a debt? Creditors, once they have proof of the debt owed to them, have all legal remedies in their favour. They have the right to file a judicial claim after going through a conciliation process to reach an agreement that we can call ‘amicable’, and that always benefits both parties. Can you give us some insight into the negotiation and settlement typically employed in debt collection cases? The first idea is more of a tip. Before any service is provided, it is very important that, if it is not a contract signed by more parties, there is another type of justification of what has happened. Often – because it may be a family matter, or between friends – you think that nothing will go wrong, and with a conversation (without witnesses) you move on. This
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