Skip to main content
Legal collection

Judicial recovery

What is judicial recovery

Judicial debt collection is a legal term for debt collection through the bailiff court or through civil court proceedings.

The opposite of judicial debt collection is extrajudicial debt collection, i.e. debt collection without the assistance of a court, either by the creditor himself or by the creditor's debt collection agency or debt collection lawyer.

Judicial debt collection has a number of advantages and possibilities that the out-of-court debt collection process does not have. However, contrary to popular belief, judicial debt collection does not guarantee that you as a creditor will get your money.

Judicial debt collection is often associated with a number of legal costs, which is why most creditors and debt collection companies also prefer an out-of-court debt collection process to the judicial debt collection process, provided that the debtor does not disagree with the claim or has not objected to the claim.

What is the difference between judicial and extrajudicial debt collection?

The vast majority of all debt collection in Denmark starts and is resolved in an extrajudicial debt collection process, i.e. where the creditor or the creditor's lawyer or debt collection company resolves the case without the help of the enforcement court. In most cases, this is by far the cheapest and most effective way to start a debt collection process when the debtor has not objected to the claim.

If the case is not resolved, i.e. the debtor does not react, the debtor does not agree with the claim or similar, the case will often move from an out-of-court procedure to a judicial debt collection procedure. This happens because it is often cheaper to try without the court's help and without having to wait for the court's possible processing times.

What is the advantage of judicial recovery?

Debt collection with the help of the enforcement court has many advantages, because the enforcement court has more options than you as a creditor.

Many people experience from time to time that a debtor does not respond to the actions of a debt collection company or the creditor himself in the extrajudicial debt collection process. This can also happen in the judicial debt collection process, but here the consequences are far greater. For example, if the debtor chooses not to appear in the enforcement court, the court has the option of asking the police to collect the debtor, this is also called a police presentation.

In addition, the enforcement court can also attach the debtor's property if the debtor is unable to pay or repay the amount due.

It is not always certain that you as a creditor will get your money from a debtor, even if the case has gone to court. However, your claim will generally be extended from 3 years to as much as 10 years once the case has been in the enforcement court, and this can be of great value if the debtor does not have the means right now to pay you.

In other words, the enforcement court has a wide range of other options and powers than debt collection agencies and debt collection lawyers - even when the debtor is unable to pay his or her debts.

How to get started with judicial debt collection?

There are several ways to start a legal process, either on your own with the help of your debt collection agency or with the help of your lawyer.

The vast majority of cases can benefit from starting in an out-of-court process. This can often resolve a case faster and cheaper than in the enforcement court. However, if a debt collection case is not resolved in the out-of-court phase, you should work with your debt collection company or lawyer to assess whether legal action may be necessary.

If your principal amount is less than DKK 100,000 and the debtor has not objected to your claim, a so-called simplified debt collection process can be initiated. Such a process is initiated on the basis of a payment demand, which you can find the form for on the bailiff court's website.

Free material

Subscribe to the newsletter

Latest posts