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Legal title: Objective in judicial dunning proceedings

A legally binding title is the document that the entire judicial dunning procedure is aimed at obtaining. Such a title is valid for a full 30 years and gives its owner (the creditor) access to the debtor's assets for just as long. In this blog post we show what is important for a legally binding title and how the title actually turns into money.

The entry into the judicial dunning procedure is always the entry into the acquisition of a title. Because basically there are exactly three possibilities in the judicial dunning procedure, how an unresolved claim matter can develop:

  1. The debtor pays after he has received the order for payment or the enforcement order
  2. The debtor files an objection or objection, and the claim goes through the litigation
  3. The debtor does not act at all, and the title is deemed to have been obtained with the uncontested enforcement order

Depending on how a matter of claim creditors have either a final title, their money, or a lawsuit in prospect. But even if the matter develops in the direction of a process, there is a legally binding title in the room. Because even Comparisons, Judgments and Resolutions to fix costs are considered a title under German law. This means that holders of such documents have the same access to the debtor's assets as holders of titles from the court order for payment procedure.

Realize demands

A title secures the outstanding claim, but is not yet cash. In order to actually make money out of a legally valid title, there are several decisive factors:

  • continuous credit monitoring
  • Knowledge of constitutional access options, e.g. in foreclosure
  • Professionalism in debt communication
  • Patience and persistence because getting a title to life can be a lengthy process

When dealing with a legally binding title once it has been obtained, professionalism and continuity are essential. Because only if the work on existing titles is carried out in a targeted manner, there is a good chance of converting it into cash and covering outstanding claims from debtors' assets.

Conclusion

A legally binding title is a mandatory requirement in post-court claims management, even if it is not yet an end point in an unpaid claim. In order to make money from a title, you need professionalism and perseverance in order to use access options in a targeted manner.