Document background
The Formal Demand Letter (Mahnschreiben) is a fundamental document in German debt collection practice, used when informal attempts to secure payment have been unsuccessful. It serves as a formal prerequisite to legal proceedings under German law and must comply with specific requirements outlined in the German Civil Code (BGB). The document is typically used when a payment is significantly overdue and the creditor wishes to formally establish the debtor's default status. It must include precise details about the debt, clear payment instructions, and a reasonable deadline for payment. The letter triggers important legal consequences, including the ability to claim default interest and collection costs, and serves as evidence in any subsequent legal proceedings. Its format and content are heavily influenced by German legal requirements and business practices, making it distinct from demand letters in other jurisdictions.
