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Claim and recover debts in Madrid (2025)

Debts
Claim and recover debts in Madrid (2025)

If you are having trouble recovering a large debt in Madrid, you are not alone. Companies, freelancers, and individuals face the difficult challenge of claiming large amounts from defaulting debtors every day.

The good news is that effective legal tools exist to solve this issue. In this comprehensive legal guide, we explain step by step how to claim a large debt in Madrid in 2025 efficiently and without losing patience (or money).

1-Assess Whether the Debt Is Claimable in Madrid

Before initiating any legal procedure, it is essential to ensure that the debt is legally enforceable. To do so:

  • There must be a contractual obligation: a contract, invoice, delivery note, or any document proving the commercial or contractual relationship between the creditor and debtor.
  • The debt must be overdue and unpaid.
  • The debt must not be time-barred: in general, the statute of limitations for claiming debts in Spain is 5 years.
If these conditions are met, it is time to take action.

2-Extrajudicial Methods: The Fastest Solution for recover debts in Madrid 

Before resorting to court, it is advisable to try resolving the issue without litigation. There are three main options:

A)-Direct Contact with the Debtor

A simple reminder via phone, email, or certified letter may be enough to secure payment. However, recovering the debt can be challenging without the intervention of a debt recovery lawyer in Madrid, who can mediate and pressure the debtor to pay the owed amount.

In these cases it is always advisable to maintain a professional but firm tone. Establish a specific deadline for the response, as well as warn of possible legal action if there is no response.

B)-Burofax with Payment Request

If the debtor ignores all attempts at contact, the expert lawyer you have hired in Madrid must send a burofax with acknowledgment of receipt and certified content.

This serves as legal proof that a formal payment request has been made, which is crucial if the case goes to court.

C)-Mediation and Arbitration

If both parties are willing, a lawyer can negotiate professionally or conduct arbitration. This method is faster than going straight to court.

3-Judicial Procedures to Claim a Large Debt in Madrid

If amicable methods fail, it is time to go to court. There are different legal options depending on the type and amount of debt:

A)-Monitoring Procedure (For Clear and Documented Debts)

This is the fastest and simplest way to claim a debt if you have written evidence of it (invoices, contracts, emails, WhatsApp messages, etc.).

A monitoring procedure claim is filed in the competent court, the debtor has 20 business days to pay or present objections.

If no response is received, the court will issue a judicial ruling in your favor, allowing you to seize the debtor’s assets through an enforcement procedure.

B)-Ordinary or Verbal Trial (Depending on the Amount)

There have been important modifications to the amounts established in the Ordinary Trial and Verbal Trial procedures in Spain.

And after the reform carried out in the Civil Procedure Law (hereinafter, LEC) by Royal Decree-Law 6/2023, of December 19, which is currently in force, it was established that claims for an amount to be claimed greater than 15.000 € are processed by Ordinary Trial and when they are less than 15.000 € by Verbal Trial. 

Prior to March 20, 2024, the date on which the reform of the LEC came into force, the minimum amounts to initiate an ordinary trial procedure were 6.000 € a amount less than said amount were processed through a verbal procedure.

Both judicial procedures require a lawyer and a “procurador” and can last several months.

C)-Judgment Enforcement and Asset Seizures

If the court agrees with you, but the debtor still does not pay, you can request the execution of the judgment to seize bank accounts, payrolls, real estate, vehicles, etc.

This procedure will be carried out through a demand for execution, which will be processed by the same Court that issued the Judgment.

4-Lawyers experts in Debt Recovery in Madrid: A Viable Option?

If you don’t want to handle the entire legal process, you may consider hiring a law firm specialized in debt collection, such as Forcam Lawyers Madrid, or selling the debt to an investment fund that specializes in buying unpaid debts.

These firms manage the entire collection process and usually charge a fixed fee and a success-based commission if they recover the owed amount.

However, do thorough research before choosing a firm, as some use aggressive collection tactics that could harm your company’s or personal reputation.

The best option is to hire specialized professionals in debt recovery who can handle the case efficiently and legally.

5-Tips to Prevent Unpaid Debts in the Future

  • Verify the financial solvency of clients before signing agreements.
  • Sign clear and detailed contracts to avoid misunderstandings.
  • Offer incentives for early payment and penalties for late payments.
  • Maintain a strict payment and collection management system.
  • Act quickly when claiming a debt, as legal deadlines apply. It is always best to take action as soon as possible.

Claiming a large debt in Madrid is easier to do with the legal guidance provided in this article, and with the right legal advice, it is possible to recover your money efficiently. Remember that the sooner you start the non-payment claim procedure in Madrid, the greater your chances of success will be.

If you need professional help to claim a large debt this year 2025, having professionals will save you time and headaches. Don't let an outstanding debt affect your finances! Act intelligently and use legal mechanisms to your advantage.