Document background
The Demand for Payment (Mahnbescheid) is a critical document in German debt collection procedures, used when standard invoicing and informal payment requests have been unsuccessful. It represents a formal step before initiating court proceedings and is regulated under the German Civil Code (BGB) and Code of Civil Procedure (ZPO). This document is typically used when a debt is overdue, undisputed, and the creditor wishes to establish a legal basis for enforcement. It must contain specific information including the exact debt amount, interest calculations, and payment terms. The document can be used for both business-to-business and business-to-consumer relationships, though additional requirements apply when dealing with consumers. A properly prepared Demand for Payment can lead to an enforcement order (Vollstreckungsbescheid) if the debtor fails to respond or pay within the specified timeframe.
