Payment-order claims in Austria: process, deadlines and costs

At this point, many Austrian companies end up with the question of whether the order for payment is now the right step. This guide explains how the court order procedure in Austria works, what it costs, how long it takes and in which cases an out-of-court collection is the faster solution.

One unpaid invoice is frustrating. Three can become a liquidity problem. When repeated written reminders receive no response and calls go unanswered, Austrian creditors can consider court proceedings. Payment-order claim (Mahnklage) is usually the first step in court and it is significantly less complicated than many entrepreneurs fear. It is a simplified procedure without oral proceedings, without taking evidence and in the end with an enforceable title.

This guide shows how the court action in Austria actually takes place, what conditions must be met, what costs and deadlines you should expect and when an out-of-court collection is the better way.

What a payment-order claim is and when it is used

The order for payment is the opening of the Austrian order for payment procedure. The order for payment procedure is a simplified civil procedure for uncontested money claims. You send the competent district court a completed form with your claim, the court formally examines and then issues a Order for paymentThe debtor then has four weeks to pay or appeal. There is no oral proceedings in the order for payment procedure.

The delimitation to other steps in the collection of receivables is important:

• Out-of-court payment reminder. Your own letter or that of a collection provider. It has no judicial effect, but documents the delay and triggers legal consequences such as late-payment interest. How many reminders are usual before a collection, is a subject of its own; there is no legal minimum number in Austria.
• payment-order claim. The court's request for a payment order is a simplified procedure without taking evidence.
• Court claim in contested proceedings. It becomes necessary if the debtor objects to the order for payment or if your claim appears disputed from the outset.

For most unpaid B2B and B2C invoices with clear facts, the payment reminder is the right way. It is cheaper, faster and less formal than an ordinary civil suit.

Payment-order claim or debt collection? A guide for creditors

Before starting court proceedings, compare the options carefully. A payment-order claim is efficient, but takes time and money and becomes a court matter once filed. An extrajudicial collection procedure In practice, we see at incaseof.law that a significant part of all claims are already paid after the first professional letter without legal action. The reason is simple: as soon as a debtor sees that the matter has been removed from internal accounting, the pressure increases noticeably. This saves you court fee, advance payment costs and time.

The payment reminder is the means of choice when:

• You don't get a response to payment reminders and reminders
• the debtor also does not respond to the collection letter or does not deny the claim, but still does not pay
• you need an enforceable title because later compulsory enforcement may be necessary
• the claim is clearly documented and not contested (outstanding invoice with undisputed performance)

Collection is the better way if:

• You haven't tried an escalation yet and you don't want to confront the customer with a court letter from the start
• You want liquidity quickly without going into court fees or attorney's advances
• the claim is of an order in which court costs are disproportionate
• You have an ongoing business with the debtor and want to continue the relationship if possible

In many cases, both paths are linked. A debt collection service provider can even bring the order for payment procedure through a contract attorney if the out-of-court procedure does not lead to success. As a creditor, you do not have to work yourself through forms and deadlines. receivables management in Austria and Germany.

Practical tip: If the debtor is another business, check its creditworthiness before court action. Suing an obviously insolvent party adds costs with little prospect of recovery. KSV1870 provide valid information for this purpose.

Prerequisites: When a court action in Austria is admissible

Not every claim is suitable for the order for payment procedure. In order for the district court to issue a payment order, the following conditions must be met:

• A monetary claim only. A payment-order claim is available for monetary claims, not claims for delivery, an injunction or performance of work.
• Claim value up to 75,000 euros. Claims above this threshold must be pursued directly in contested proceedings.
• National residence or registered office of the debtor. For debtors in EU countries, the European order for payment is eligible; for third countries, the Austrian order for payment procedure is excluded.
• The claim must be supported by a coherent statement of facts. You must make the reason and amount of the claim comprehensible in the application, including the date of the invoice, due date and any reminders of payment.
• No proceedings already pending. The same claim must not be subject to legal proceedings.

If these conditions are met, the path is clear. By the way, there is no prescribed minimum number of reminders before the action in Austria. Even without prior written payment reminder, a reminder claim may be admissible as soon as the delay has occurred; in practice, however, at least have preceded a documented reminder, because this supports the legal basis of your claim.

Procedure step by step: From request to order for payment

The order for payment procedure is deliberately simple. It can be divided into five phases.

1. Preparing the application

They fill out the payment reminder form, which the judiciary on JustizOnline Information is required on you as a plaintiff, on the debtor as a defendant, on the amount of the claim, including interest and costs, and on the basis of the claim.

2. Filing to the competent court

As a rule, the district court is responsible for the defendant's domicile or place of business. District Court of Commercial Matters Vienna is increasingly filed electronically through ERV. Filing in person or by post remains possible.

3. Formal examination by the court

The court checks that the formal requirements are met and that the facts coherently support the claim. There is no taking of evidence or oral hearing at this stage, which makes the procedure fast.

4. Adoption and service of the order for payment

If there is nothing against the action, the court issues the order for payment and assigns it to the defendant. Thus, the opposition period of four weeks begins for the debtor. This service is the decisive moment in the proceedings, from which the clock runs.

5. Finality and an enforceable title

If the defendant has not done anything for four weeks, the order for payment becomes final and enforceable. From this moment on, he is an enforcement title with which you can initiate wage attachment, account attachment or other enforcement measures. How the debtor can behave from this point on describes our contribution to this, what happens when you don't pay a debt collection letter.

What a payment-order claim costs in Austria

The costs are composed of two blocks: the lump sum fee of the court and, where appropriate, the attorney's fee. Both depend on the value of the dispute.

The exact court fee depends on the Austrian court fee rate and becomes due when the action is brought. The concrete amounts change regularly and can be viewed via the official sources, such as the explanation page of the Republic of Austria on order for payment.

If successful, procedural costs are charged to the defendant and can be included with the principal in the payment order. Recovery still depends on the debtor’s ability to pay; otherwise the costs remain with you.

Practical tip: In your application, remember to include the Late-payment interest and reminder and collection costs actually incurred as an ancillary claim. Amounts omitted from the application cannot simply be added later.

How long the order for payment procedure in Austria lasts

In practice, it often takes only a few weeks from the filing of the order for payment to the delivery of the order for payment.

After that, the opposition period of four weeks in which the debtor can react will run. If he is silent, the order for payment will become final. A total of eight to ten weeks from the application to the enforceable title is a realistic expectation value, unless there are any difficulties in service.

If the debtor objects, the proceedings change to the contested stage and the duration increases significantly. Therefore, you should check before the action whether the claim is really undisputed and whether all documents are cleanly documented.

What happens after the order for payment: opposition, validity, enforcement

Three scenarios are possible as soon as your payment order has been sent to the debtor.

• The debtor pays. This is more common than many expected. The letter from the court has effect. In this case, the proceedings will be settled as soon as the amount has been received by you.
• The debtor objects. The payment-order procedure ends and the case moves to ordinary civil proceedings. You must then present the claim at a hearing and provide evidence where required. A lawyer is generally involved when the claim exceeds EUR 5,000.
• The debtor doesn't respond. Four weeks after service, an uncontested payment order becomes final and provides an enforceable title. If the debtor does not pay, you can enforce against receivables, bank accounts or movable assets.

enforcement is a separate procedure with its own costs and requirements. In the majority of cases, however, the threatening backdrop of the payment order is sufficient to bring about movement, especially when a debt collection service provider keeps up pressure in parallel.

File a payment-order claim yourself or instruct a debt collection provider

In principle, you can bring the lawsuit in Austria yourself if the value of the dispute does not exceed 5,000 euros. Above this value, the representation by a lawyer is necessary. Practically this means: In case of small claims against private individuals or small companies, the own application is possible, for B2B disputes usually not.

The question is whether this really needs to be your job. A debt collection service such as incaseof.law takes over the out-of-court part completely, entrusts the contract attorney with the payment-order claim in the escalating case and takes care of deadlines, service and follow-up measures. You get reports, see the status, but do not have to enter the ERV or district court logistics yourself.

In practice, the quota of unpaid claims that we clarify before the judicial step is high. Whoever nevertheless makes it happen to the order for payment benefits from the fact that the entire procedure runs from one source, from the first phone call with the debtor to the enforceable title. We describe how we implement this specifically in Vienna and throughout Austria in the article Debt collection in Vienna: how to recover your money.

Conclusion: Know the toolbox, then escalate it specifically

Those who have to collect outstanding claims in Austria should know the entire toolbox, from the first reminder of payment to the out-of-court collection to the order for payment and enforcement. Payment-order claim (Mahnklage) is usually not the first step, but can be decisive. Assess the specific case to decide whether court action is worthwhile or out-of-court recovery would be faster. Doing nothing is the least useful option. At incaseof.law accompany you all the way, from the first letter to the enforceable title.