Judicial Debt Collection in Spain

Before recommending court action, IJ Creditor prepares —whenever possible— a judicial feasibility report. The report assesses the strength and validity of the documentation, the debtor's solvency and whereabouts, applicable limitation periods, and the realistic prospects of success in court. Its purpose is to avoid putting the client through the cost and effort of a procedure that, given the circumstances, should not be initiated.

If the feasibility report advises against filing, this is communicated to the client with reasoned support. The lawyer's intellectual work on the report is never invoiced. Where external information with cost is required —debtor asset reports, registry certifications, specific searches in public or private databases— that cost is passed on to the client, with prior express approval.

In most cases, judicial fees are already covered by the rates agreed with the client in the engagement contract signed at the start of the relationship. In that case, before initiating proceedings only express authorisation from the client to proceed is required; the fees applicable are the rates already agreed and no new quote is needed.

Where judicial fees are not covered by the contract, IJ Creditor issues to the client a lump-sum quote in writing before any action is initiated, calculated according to the procedure involved, the amount claimed and the expected complexity, and requests express approval to continue.

In either case, ancillary items related to the procedure are identified upfront, including applicable court fees and foreseeable disbursements.

Since the entry into force of Spanish Organic Law 1/2025, most civil and commercial court proceedings require evidence of a prior attempt at an Alternative Dispute Resolution method (MASC) —negotiation, mediation, conciliation, binding offer, or any other form set out by the law— before a claim can be filed. The law also sets out exceptions: insolvency proceedings, bill-of-exchange procedures, enforcement, preliminary precautionary measures and certain non-contentious jurisdiction procedures. Where the requirement applies, the claim will not be admitted without evidence of the prior MASC attempt.

IJ Creditor handles this requirement in each file where it applies. The standard form is a formal notification to the debtor, typically by Spanish burofax with a specific payment proposal. The burofax allows documentation of both the despatch and, through the Spanish postal service, the delivery and full content of the communication, thereby evidencing the attempt required by the law. The cost is agreed with the client.

The specific procedure that IJ Creditor will initiate in each case depends on the subject matter of the claim and on the conditions set by the Spanish Civil Procedure Act for each route. Not every claim admits every procedure —for instance, an action for termination of a contract does not admit the order-for-payment (monitorio) procedure. The firm assesses, case by case, which procedure is legally possible and commercially most appropriate.

Judicial timeframes depend on the procedure, the competent court and the debtor's response. As an orientation, an unopposed monitorio can be resolved within a few months. In contested procedures —verbal proceedings, ordinary proceedings, enforcement— timeframes may extend depending on the procedural stages required and the court's workload.

At the start of proceedings, IJ Creditor provides the client with a reasonable estimate of timeframes based on the firm's experience with the relevant court and on the type of procedure foreseen.

Although the legal representation of every procedure is led from IJ Creditor in Madrid, the firm maintains a consolidated network of local lawyers with specific experience in their respective judicial districts. Where the nature of the procedure, the debtor's location or the technical complexity of the matter make it appropriate, IJ Creditor relies on these professionals to secure the best representation in each case.

Coordination is always maintained from the central office, so that the client retains a single point of contact for the entire file.