If you are involved in debt collection and debt recovery in general, it is very good to know about a payment order. But what can you as a company and creditor actually use a payment order against a debtor?
A payment order is a legal document or form that you, as an individual, company, debt collection agency or lawyer, can send to the enforcement court if a debtor owes you money and you now want the enforcement court's help.
If you, as a business, expect that your debtor agrees with the claim and therefore has not objected beforehand, you can make use of the simplified debt collection process.
To make use of the simplified debt collection process, the principal amount of the claim (excluding interest and any costs) must not exceed DKK 100,000.
The payment order is a form that you can find on the website of the bailiff court.
You have the option of submitting the form in physical form or by email.
A payment order is a form issued by the enforcement court, under the Danish courts. The form is made up of 9 sections to be filled in by you as a creditor, your debt collection company or your lawyer.
The boxes in the form contain:
In this box, you as a company (or its representatives) must provide information about the creditor and who is owed money.
Here you provide the creditor's general information, name, address and, if the creditor is a company, it is important to indicate its legal form.
In this field, you must provide information about your debtor.
Please provide as much of the information you have on the debtor as possible: name, address, telephone number - and if the debtor is a company, you should give its legal form.
If the debtor is more than one person - or legal entity - all contact details must be provided in the demand letter.
In the 3rd box of the payment order, you have to choose the enforcement court where the case should be brought.
The order for payment must normally be delivered to the judicial district in which the debtor lives. In other words, if your debtor lives in Frederiksberg, the claim must be sent to the enforcement court in Frederiksberg.
If there are several debtors living in different jurisdictions, the creditor is free to choose the court of enforcement of his choice.
In exceptional circumstances, it is possible to choose a different enforcement court from the one to which the debtor belongs, however, the reasons for this must be written in the payment order by the debtor.
Box 4 of the payment order must indicate the principal amount of the claim. The amount indicated does not include interest and any charges. If you, as the creditor, have charged interest and fees, these must be indicated separately.
Please note that the principal amount of the claim (without interest and fees) may not exceed 100,000 kroner.
In box 5 of the payment order, the creditor must indicate how the claim arose and the composition of the claim.
Make sure you describe the case in such a way that neither the bailiff nor the debtor is unaware of the claim and what the claim is about.
For example, make sure to indicate that the claim is an invoice claim, the amount, the date of the invoice and the due date, if applicable.
It is also a good idea to attach the invoice as an annex to support your claim.
In this field you have to indicate whether a debt collection notice has been sent to the debtor.
It is very important that you as a creditor or his representatives; debt collection company, lawyer or other third party, have sent a legally valid debt collection notice to your debtor prior to sending the debt collection notice.
If this is not sent to the creditor, the payment claim will be rejected.
In this section, you must tell the court what you want the enforcement court to help you with. This could be, for example, an attachment or the initiation of legal proceedings.
There is currently a court fee of DKK 750 to be paid to the bank account of the court of enforcement. See the always current court fees on the website of the bailiff court.
In this box, enter the date when the form was completed (today's date).