What measures should a creditor take prior to initiating debt-collection proceedings in Spain?
- Spain
- 06/12/2002
A creditor holding a valid debt, which is due and payable, should first send a written notice to the debtor of its intention to collect the debt. It is recommended that such extrajudicial debt-collection correspondence be carried out by means that verify its delivery and receipt, such as certified mail with return receipt confirmation.
Prior to initiating legal proceedings, it is also important to collect an analyze all documents evidencing the existence of the debt, such as purchase orders, invoices, bills of lading, warehouse and delivery receipts, written correspondence, payment instruments, bank notices of nonpayment, etc.
Finally, it is worthwhile to conduct an investigation as to the identification, location and solvency of the debtor, by obtaining various reports on the debtor available through the Real Estate and Mercantile Registries, the Social Security Department, etc., to assess whether the debtor has sufficient property or assets to satisfy the debt.
