Document background
The Debt Demand Letter (Mahnschreiben) is a fundamental document in German debt collection practice, serving as a formal prerequisite before initiating legal proceedings against a debtor. It is typically used when informal payment requests have been unsuccessful and the creditor needs to escalate the matter. The document must comply with German civil law requirements, particularly the German Civil Code (BGB), and should clearly state the amount owed, the basis for the claim, and provide a reasonable payment deadline. A properly drafted Debt Demand Letter establishes the debtor's default (Verzug) and can trigger legal consequences such as default interest and collection costs. It's essential for businesses and individuals operating in Germany to understand the proper format and content requirements of this document, as it can significantly impact the success of subsequent legal actions for debt recovery.
