Costs Calculation for the Enforcement of a 5,000 EUR Claim Through Court-Issued Payment Order and Subsequent Enforcement Measures

Enforcing an unpaid claim of 5,000 EUR through legal channels can become complex and costly if the debtor persistently refuses to pay. Under German procedural law, a two-step procedure is provided: initially a judicial dunning procedure (consisting of a payment order and, subsequently, an enforcement order) is initiated to obtain an enforceable title. If the debtor continues to refuse payment after issuance of the enforcement order, the next step is to initiate enforcement measures.

Below you will find a comprehensive, structured overview of the anticipated costs based on current fee schedules (the German Attorney Remuneration Act – RVG, and the Court Fees Act – GKG). This overview is intended to give creditors a detailed insight into the fees and expenses they may incur so that they can better assess the financial implications of pursuing their legal claims.

Please note that the calculations given are approximate guidelines. Actual costs may vary depending on differences in judicial fee schedules, amendments to the RVG, additional disbursements, and specific steps taken in the proceedings. Moreover, value-added tax (VAT) must be included in attorney fees if the creditor is not entitled to input tax deduction.

Overview of the Procedure

The process of enforcing a 5,000 EUR claim generally involves the following steps:

1. Initiation of the dunning procedure: Filing an application for a payment order with the competent court.
2. Issuance of the enforcement order: If the debtor does not respond to the payment order, an enforcement order is requested and granted.
3. Enforcement based on the enforceable title: Should the debtor still not pay, enforcement measures can be taken based on the enforcement order (for example, through a bailiff, garnishment and transfer orders, or attachment of bank accounts).

Each of these steps entails various fees and expenses, including:

– Court costs (under the GKG)
– Attorney’s fees (under the RVG)
– Enforcement costs (bailiff, garnishment measures, other court fees related to enforcement)
– Potential additional expenses (service costs, telecommunication flat charges, travel expenses, etc.)

Judicial Dunning Procedure: Fundamentals and Fees

The judicial dunning procedure is designed to obtain an enforceable title without a contentious court proceeding. It has two stages:

1. Payment order (Mahnbescheid): Filed with a central dunning court. The debtor can pay, acknowledge the claim, or file an objection within two weeks.
2. Enforcement order (Vollstreckungsbescheid): If the debtor does not respond to the payment order, the creditor applies for an enforcement order after the statutory time limits have passed. The enforcement order is issued without a hearing and creates an enforceable title from which enforcement action can be taken immediately.

Court Costs in the Dunning Procedure for a 5,000 EUR Claim

Court costs for the dunning procedure are regulated by the GKG and depend on the claim’s value, here 5,000 EUR. Compared to ordinary court proceedings, the dunning procedure generates lower initial fees.

For a claim value of 5,000 EUR, a court fee (0,5) is about 80,50 EUR (approximate figure). 

Attorney’s Fees in the Dunning Procedure

Attorney’s fees for the dunning procedure are determined by the RVG. The amount depends on the claim value (5,000 EUR) and the fee categories in the RVG fee schedule (VV RVG).

Typically, the following fees apply in the dunning procedure:
– A 1.0 procedural fee for applying for the payment order
– An additional 0.5 fee for applying for the enforcement order

Total: 1.5 fee units.

For a 5,000 EUR claim, the 1.0 fee is approximately 330 to 340 EUR. A guideline figure is about 334 EUR.

– 1.0 fee: approx. 334 EUR
– 0.5 fee (for the enforcement order): approx. 167 EUR (half of 334 EUR)

Total fees: 334 EUR + 167 EUR = 501 EUR.

Additionally, there is usually a lump-sum expense (e.g., telecommunication flat fee) of about 20 EUR.

Net sum: approx. 521 EUR
Plus 19% VAT (if not entitled to input tax deduction): about 621 EUR.

Thus, total attorney’s costs for payment and enforcement order range around 620 to 630 EUR.

Costs of Enforcement Measures

Once the enforcement order is obtained and the debtor still does not pay, enforcement measures can be initiated. Options include:

– Engaging a bailiff for seizure of movable property
– Applying for garnishment and transfer orders (e.g., attaching bank accounts)
– Wage garnishment from the debtor’s employer
– Registering a compulsory mortgage in real property

Each of these actions incurs additional costs.

Bailiff’s Fees

Bailiff’s fees are statutorily regulated. Fees accrue for serving enforcement requests, conducting seizures, holding auctions, or obtaining a statement of assets.

As a rule of thumb, a basic seizure attempt by the bailiff may cost between 30 to 100 EUR, depending on complexity and expenses.

Court Fees for Garnishment and Transfer Orders

Applying for a garnishment and transfer order (e.g., account garnishment) usually incurs about a half fee of around 50 EUR in court costs.

Attorney’s Fees in the Enforcement Phase

Attorney’s fees also arise during enforcement. Typically, a 1.0 fee will be incurred for initiating and carrying out enforcement measures. For a 5,000 EUR claim, this is again approximately 334 EUR. Including lump-sum expenses and VAT, it comes to around 400 to 420 EUR per enforcement measure.

Multiple enforcement steps mean multiple sets of fees. In practice, creditors often try to minimize the number of measures.

Overall Cost Overview

Dunning procedure (including enforcement order):
– Court costs: approx. 150 EUR
– Attorney’s fees: approx. 620 EUR
Total: approx. 770 EUR

Enforcement action (for one typical measure):
– Attorney’s fees: approx. 400 to 420 EUR
– Bailiff’s costs: approx. 30 to 100 EUR
– Court costs for garnishment order: approx. 50 EUR

Total for a typical enforcement measure: approx. 470 to 570 EUR

Adding the costs from the dunning procedure and one enforcement measure, you reach about 1,200 EUR. If multiple measures are needed, costs can increase further, making total expenses of 1,200 to 1,500 EUR not uncommon for enforcing a 5,000 EUR claim against a resistant debtor.

Factors Influencing Actual Costs

1. Debtor’s Payment Behavior: If the debtor pays after the payment or enforcement order, further enforcement costs are saved.
2. Type and Extent of Enforcement Measures: Multiple seizures, bailiff visits, or asset investigations increase costs.
3. Input Tax Deduction: If the creditor can claim input tax, the effective burden of VAT on attorney’s fees is reduced.
4. Changes in Fee Schedules: Periodic legislative updates can alter the exact fee amounts.
5. Additional Individual Costs: Travel expenses, interpreters, or special services may add further costs.

Economic Considerations and Practical Benefits

Enforcing a 5,000 EUR claim may be worthwhile if the debtor is solvent and the costs can ultimately be recovered from them. However, if there are doubts about the debtor’s financial situation, it may be wise to first assess the likelihood of successful recovery or to consider out-of-court settlements.

Conclusion

When enforcing a 5,000 EUR claim through a dunning procedure followed by enforcement measures, total costs can easily amount to around 1,200 EUR or more, depending on the number of enforcement steps needed. These costs are generally recoverable from the debtor upon successful enforcement, but only if the debtor actually has assets or income to seize. Before proceeding, it is advisable to carefully evaluate whether the effort and expense are justified by the prospects of a successful recovery.