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Below you will find a glossary of important terms for the dunning and compulsory enforcement proceedings. If you still have any questions, please send us an email. We will explain the term and possibly add it to our glossary. A, B, C, D, E, F, G ,H, I, K, L, M, N, O, P, R, S, T, U, V, W, Z |
| A |
| Accessory claims – Claims which arise in addition to the principal claim due to the debtor’s default of payment (e.g. collection fees). |
| Adversary proceedings – Proceedings where the court checks whether the creditor’s claim towards a debtor is valid or or not. If proceedings continue despite the doubt of validity, the contended proceeding on the part of the creditor is automatically applied for when the debtor files an objection against the court order. |
| advoprax AG - Kanzlei Agnesstraße – Our law office in Bochum, Germany. You can also visit us online at: http://www.advoprax.de |
| Attorney in the dunning procedure – See lawyer in the dunning procedure |
| Automated dunning procedure – See Data carrier exchange software program |
| B |
| Bailiff – Executory officer and delivery officer who collects the creditor’s claim by order of the creditor and under instruction of the court (e.g. a garnishment order). |
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Browser – Computer program to display internet and to interact with online services. |
| C |
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Claim – See demand |
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Collection procedure – Collection of receivables, in particular mature bills, which is partly carried out by commercial collection firms (debt collection agencies). |
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Compulsory execution – Procedure in which claims for benefits and liabilities are enforced by means of government force (e.g. with the help of a bailiff). |
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Creditor – A person who is qualified to demand a service from another person (debtor) which stems from a legal obligation. |
| D |
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Data carrier exchange program – This software program processes the information needed to issue a court order. The information is saved on disk and transferred to the dunning courts. It is also possible to transfer the data via electronic data transfer to dunning courts. The use of data transfer is possible only with the accreditation of the dunning court. |
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Default – Default occurs when a debtor does not fulfill his or her obligation to pay after receiving the creditor’s court order with a payment deadline. |
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Default interest – Interest which the creditor failed to receive because the debtor did not settle the payment claim. It is assumed that the creditor could have invested the debtor’s interest-bearing claim following the due date if the debtor had paid the claim. The interest is usually fixed at a 4% rate for contracts between private persons and at a 5% rate for contract between businesses. |
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Default of payment – See default |
Demand – The debtor pledges to perform a service for a creditor because of an obligation (e.g. contract). Cash payments are the object of demands paid by means of a court order. |
Dunning court – Court which is exclusively responsible for issuing court orders and enforcement orders. |
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Dunning procedure – Legal procedure in which one-sided claims on payments or services are asserted. |
| E |
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Enforcement order – If the debtor does not settle the claim following the deadline I set in the court order and does not file an objection, it is possible for the creditor to apply for an enforcement order. With this order a bailiff can be assigned to collect the debts from the debtor. The debtor may file an objection against the enforcement order within two weeks. |
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Execution warrant – The execution warrant is a title (unless the debtor files an objection) with which the creditor becomes entitled to settle his or her claim from the debtor (and default interest) over a period of 30 years using compulsory enforcement measures. |
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Expenses – Expenses which occur in the course of the dunning procedure (e.g. delivery costs, attorney fees, etc.). |
| F |
| G |
| Garnishee – Debtor (e.g. bank or employer) against which the debtor has claims (e.g. payment of deposit or loan). These payments can be seized by the creditor. |
| Garnished order – Adjudication which commits the third party debtor (e.g. employer, bank) to garnish e.g. income or bank balance deposit and transfer it to the debtor to settle outstanding debt. |
| Garnishment of bank accounts – Seizing of a debtor’s current deposit at a commercial bank, or future payments into the debtor’s account. |
| Garnishment of wages – Seizing of the debtor’s loan or seizing of future loans. Where necessary the limits of exemption from execution must be observed. |
| H |
| Help – Should you have questions about completing our forms, please contact us by email. If you require urgent assistance, please call us at (0049-234-9586526) or send us a fax (0049-234-9586527). |
| I |
| Insolvency – When a debtor cannot settle the claim demand or it is not possible to exact payment legally (e.g. capital abroad). It is possible to check the solvency of a potential customer or the customer’s willingness to pay before beginning business by using one of several online databases (e.g. Supercheck). |
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Interest – See default interest |
| J |
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Joint tortfeasor – Here there are at least two debtors for one claim because of a special legal relationship (e.g. married couples, owners of a proprietary association). It is possible to assert the claim for one debtor only. |
| K |
| Kanzlei Agnesstraße - advoprax AG – Our law office in Bochum, Germany. You can also visit us online at: http://www.advoprax.de |
| L |
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Lawyer in the dunning procedure – If the services of a lawyer are used to issue a court order, the attorney expenses and the court fees will be paid by the debtor. The debtor must pay these fees together with the principal claim that has been legitimately asserted by the creditor. |
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Legal court order – Legal application for payment which is issued by a dunning court and which calls on the debtor to settle the demand within two weeks following delivery of the court order. If the debtor does not pay and does not file an objection, it is possible to issue an enforcement order. |
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Limit for exemption from execution – Limit up to which the debtor’s income or account balance may not be garnished to allow a minimum subsistence level. |
| M |
| N |
| O |
| Objection against enforcement order – If the debtor of a claim files an objection against an enforcement order within 2 weeks, the compulsory enforcement against the debtor is provisionally closed. In case of an objection, the legitimacy of the claim is checked by the court if either debtor or creditor apply for this at the court (transfer into adversary proceedings). |
| Online-dunning procedure – Procedure to issue a court order based on an online application. |
| Online-dunning system – Online-system which allows the issue of court orders based on an online application. |
| P |
| PGP (Pretty Good Privacy) – Procedure to encrypt emails and prevent them from being accessed by unauthorized third parties during online data transfer . |
| R |
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Reminder – Creditor’s request to a debtor to settle an outstanding debt within a certain time limit. |
| S |
| Service – A service represents the object of the outstanding debt. If for example a contract is agreed between two partners, the following obligation comes into existence: One party owes the other a benefit in kind (e.g. a car) and in return the other party owes a cash benefit (e.g. € 35.000). |
| SSL (Secure Socket Layer) – Encryption process for data that is exchanged between a browser and internet site. This process is used to protect data transfer from being accessed by third parties. |
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Statutory agent – Agents of a legal person (e.g. business or associations) or an underage person (e.g. father or mother) or a well-known person (e.g. legal advisors). |
| T |
| Title – See execution warrant |
| U |
| Unjustified claim – A claim is legally seen unjustified when it is invalid based on the legal regulations of a court or when the validity of the claim cannot be proved because of a lack of information. |
| V |
| W |
| Z |
| All information is presented to the best of our knowledge. We assume no responsibility for its correctness. |