Before claiming: know the debt and the debtor
Every professional knows that, at some point, a client may not pay an invoice. How you handle that situation makes the difference, both in getting paid as soon as possible and in reducing the loss if full payment is not possible.
The first step is to check two things. First, that the debt can be proved: an accepted quote, a contract, signed delivery notes or emails in which the client acknowledges the order. Second, that it is not time-barred, meaning the period the law allows for claiming it has not run out. That period varies with the type of debt and is interrupted by a claim sent with legal proof of delivery, so it is best not to let it slip.
It also helps to know who you are dealing with. A debt owed by a solvent client who disputes the work is not handled in the same way as one owed by someone with no known assets. With the information in public registers, you can judge whether going to court is worthwhile and which route makes most sense.
The friendly but firm claim
A good out-of-court claim resolves many unpaid debts without setting foot in court. It should be sent by a method that records the content and the delivery date, such as a burofax (a certified letter with proof of content and delivery).
In addition, since Ley Orgánica 1/2025, de eficiencia del Servicio Público de Justicia (the Justice Efficiency Act), came into force, in many civil matters you must first try an appropriate dispute resolution method (MASC) before you can file a claim. A well-drafted demand can meet that requirement in some cases. That is why I draft it with a possible court case already in mind.
Court routes to get paid
The payment order procedure
The proceso monitorio (payment order procedure) is the most common procedure for claiming money debts that are due, payable and supported by documents, of any amount. The court requires the debtor to pay or object within twenty days. If they do neither, you can apply directly for the seizure of their assets. If they object, the matter moves to a verbal or ordinary trial depending on the amount. For small debts, the law allows the application to be filed without a lawyer or a court agent (procurador), although advice helps a great deal if the debtor objects.
The bill of exchange procedure
If you were paid with a promissory note, a cheque or a bill of exchange that has bounced, there is a specific procedure, the juicio cambiario, which allows you to apply for a precautionary seizure from the outset.
The criminal route, only where there are signs
Not paying a debt is not a crime. Only where there are signs of deception from the start, or that the debtor is hiding assets to avoid paying, can a criminal complaint be considered. It is a serious tool that should not be used as a way of putting on pressure.
Interest and recovery costs between businesses
If your client is a business or a professional, Ley 3/2004, de lucha contra la morosidad en las operaciones comerciales (the Spanish Late Payment Act), applies. It sets a maximum payment period that cannot be extended by contract and gives you the right to late payment interest, calculated on the European Central Bank rate and updated every six months. It also provides for compensation for recovery costs. Including these items in the claim usually helps the debtor take payment seriously.
If the debtor is a company with no assets, in some cases you can claim against the director. And if the problem keeps happening with many clients, it is worth reviewing your quotes and standard contracts so you get paid more reliably from the start. You can begin with an online consultation with the paperwork for the debt.
