Simplified debt collection process

Every year, thousands of Danish companies need debt collection when one or more payments are not received from their customers.

Fortunately, debt collection is often an effective way to get your money back - both when the creditor chooses to handle the collection process themselves, has a debt collection company or a lawyer handle it, or when the bailiff is involved through judicial debt collection.

With the simplified debt collection process, all cases under DKK 100,000 can be brought before the bailiff court relatively easily. The bailiff court can help you with everything from the basis to the execution of any attachment.

If your claim is over 100,000 DKK, the simplified debt collection process cannot be used and you will have to file a civil lawsuit instead.

Judicial and extrajudicial debt collection

Debt collection can generally be divided into two types: extrajudicial debt collection and judicial debt collection.

Extrajudicial debt collection is carried out by the creditor, the creditor's debt collection company or the creditor's lawyer - without the help of the bailiff.

Out-of-court debt collection is the form of debt collection most companies resort to when a customer fails to pay. Often, the company handles all or part of the collection process themselves, or they outsource the task to a debt collection agency or lawyer.

However, as a creditor, you also have the option of legal debt collection, i.e. with the help of the bailiff.

Judicial debt collection can either be carried out without prior extrajudicial proceedings or in continuation of an extrajudicial process.

We often see that judicial debt collection is initiated after the creditor or creditor's debt collection company/collection lawyer has first attempted extrajudicial debt collection.

Judicial debt collection offers options that extrajudicial debt collection does not, such as attachment of the debtor's assets and interruption of the statute of limitations. In addition, agreements made in the bailiff's court generally have the same effect as a judgment.

Debt collection in the enforcement court

The vast majority of debt collection cases that require legal collection involve amounts under 100,000 DKK.

If the case is under DKK 100,000 (excluding interest and legal costs), it can be conducted as a simplified debt collection process.

With the simplified debt collection process, you get help from the enforcement court to recover your debt. What's special about this process is that you only need to go to one place - the enforcement court - which can help you with the basis and execution of any attachment of the debtor's property and belongings.

If the claim exceeds DKK 100,000 and is therefore not covered by the simplified debt collection process, a civil lawsuit must be filed.

It is also a requirement for using the simplified debt collection process that you have a clear expectation that the debtor agrees with your claim - i.e. that no objection has been raised.

How to start a simplified debt collection process?

Basically, anyone can start a simplified debt collection process - the creditor, the creditor's lawyer or the creditor's collection agency.

However, there are a number of formalities that need to be in place first. It is particularly important that the creditor has a clear expectation that the debtor agrees with the claim and thus has not objected to the amount. In addition, the claim must not exceed DKK 100,000 excluding legal costs and interest.

In order to start a simplified debt collection process, you need to fill out a demand for payment form, which must contain a number of information.

In the payment demand, you must state whether a demand letter has been sent beforehand - cf. section 10 of the Danish Debt Collection Act. If this has not been done, the case cannot be started.

You can find the demand for payment form on the bailiff's website.