What is judicial debt collection?

If a debtor does not pay its outstanding debts during the voluntary collection, the creditor has the right to have the case discussed before a court.

In practice, the aim of judicial debt collection is to have a court judgement concerning the outstanding debts, which allows the creditor to apply for an enforcement. A court judgement is regarded as grounds for enforcement, resulting in a bad credit record for the debtor. Judicial debt collection starts by applying for a summons before the district court of the debtor’s domicile.