Out-of-court or court collection: a comparison
The out-of-court settlement resolves most outstanding invoices without a court being involved. incaseof.law guides your claim through all stages and only goes to court if the first stage is not enough.
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Briefly explained
When is out-of-court collection enough, and when is a payment-order claim needed?
The out-of-court collection is sufficient as long as the debtor is able to pay and responds to letters: incaseof.law calls for payment as a licensed debt collection agency, 2026 it is on average around 21 days until payment is made. If the payment is not made, the order for payment follows, i.e. the application for a payment order to the district court.
Basis: Code of Civil Procedure, order for payment and order for payment. The 21 days are the average from the proceedings in the incaseof.law network. As of August 2026.
The course
From payment reminder to enforcement: the four stages.
Each stage starts only if the preceding one has not produced payment. The first two stages are out of court. For the detailed collection process, see how incaseof.law works.
Your own payment reminder
A factual reminder of payment, then a reminder with a clear deadline. Legally, a reminder with a deadline is sufficient, further payment reminders is optional and no obligation.
Without courtOut-of-court request
incaseof.law asks the debtor to pay as a licensed debt collection agency confirmed by the Supreme Court, followed by reminder and last payment reminder. Most cases end here.
The normal caseEnforceable court title
If payment remains outstanding, the next step is a payment-order claim filed electronically through ERV. The debtor has 14 days to pay or four weeks to object.
opposition period 4 weeksEnforcement
If the debtor does not respond, the payment order becomes final and enforceable. The title can support enforcement against receivables, bank accounts or movable assets.
Final stepNext step
The first stage leaves your principal claim intact.
You hand over the outstanding invoice, incaseof.law asks the debtor to pay and goes on only if it becomes necessary. No contract, no minimum volume, no costs for creditors.
In comparison
Out-of-court or court collection: a direct comparison.
Both paths lead to the same goal, they differ in duration, cost logic and effort. The table mentions both sides, also the disadvantages.
Situation as at: August 2026
| Characteristic | Out-of-court debt collection | Court proceedings (payment-order claim) |
|---|---|---|
| What happens | Invitation to pay, reminder and final payment reminder by a licensed debt collection agency. | Application for a payment order at the district court, submitted through electronic legal communications (ERV). |
| Duration | ca. 21 days up to the payout on average, often only a few days. | 8 to 10 weeks up to the legal validity of the order for payment, in case of objection months. |
| Cost logic | Late-payment interest and collection costs arise from default and form part of the loss caused by it. | Flat fee of the court according to the value of the dispute, from 5,000 euros with attorney's fees according to tariff. |
| Who is to pay the costs | The defaulting debtor. Your principal claim remains unabated. | The debtor pays if recovery succeeds. If the debtor is insolvent, the creditor bears the procedural costs. |
| Your effort | Invoice handed over, view status at any time in the portal. | You only hand over the claim: incaseof.law prepares and files the payment-order application. |
| Lawyer Needed | No, incaseof.law acts as a licensed debt collection agency itself. | Not for claims up to EUR 5,000. Above that amount, legal representation is generally mandatory and partner law firm Biedermann & Belihart takes over. |
| Result | Payment without trial, then payment of 100 % of the principal claim. | Enforceable title as the basis for enforcement. |
| When it makes sense | As long as the debtor can be contacted and can pay. This is the usual situation. | If the out-of-court stage ends without payment, a title is needed or the statute of limitations threatens. |
What fits for whom: When the debtor can be contacted and is able to pay, out-of-court collection is faster. The debtor bears late-payment costs and your principal remains unreduced. If the collection stages produce no payment, court proceedings focus on obtaining an enforceable title. Payment-order claim (Mahnklage). When it comes to open rents, operating costs or reserves, the Eviction claim may be appropriate. For collection costs, see the Summary of debt collection costs.
Comparison criteria: process, duration, cost structure, who pays, your workload, legal representation requirements, result and suitable use cases. Court information refers to the Austrian payment-order procedure. The 21-day figure is the average across cases in the incaseof.law network. As of August 2026.
The decision
How you can tell which way to go.
The question is rarely either or, but when. These characteristics decide whether the out-of-court level is sufficient or whether it needs the title.
The normal case
When out-of-court collection is enough
- The debtor can be contacted and is able to pay.
- The claim is undisputed, order, delivery and invoice are documented.
- An payment reminder with a term has come out, the term has elapsed.
- You want to avoid putting pressure on the customer relationship through court proceedings.
The exceptional case
When court proceedings become necessary
- The debtor has not responded at any stage of the out-of-court collection process.
- The claim threatens to expire; many current business claims expire in Austria after three years.
- You need an enforceable title, for example to enforce against receivables or bank accounts.
- The debtor denies the claim, it depends on the proof.
You do not have to make this decision alone: after the handover, incaseof.law checks which level is appropriate for your claim, and initiates the next one only when the previous one has not led to the goal. What you can do while the bill is still fresh is under Customer does not pay. How to submit a claim in a few minutes shows Debt collection services.
Both paths, one access
Submit your claim once and keep both options open.
After the handover, the course, not your calendar, decides: out of court first, court only if it becomes necessary. Both runs through the same access.
The Court's Way
What actually happens in the order for payment procedure.
The order for payment procedure is not a trial with negotiation, but a formalized request. These three points determine the course.
Request for a payment order
The order for payment procedure is a simplified civil procedure for uncontested money claims up to 75,000 euros. The district court examines formally, without oral proceedings and without taking evidence.
Four weeks for the debtor
The opposition period of four weeks begins with the notification. During this period the debtor pays, lodges an objection or remains inactive.
Legal force and enforcement
If the debtor fails to act, the order for payment becomes final and enforceable. In case of opposition, the case changes to ordinary proceedings.
Situation as at: August 2026
| Position | Calculation basis | Who bears the costs |
|---|---|---|
| Court fee, GGG | Flat fee according to the value of the claim due at the time of filing of the action | Recoverable from the debtor if successful |
| Delivery costs and expenses | are charged in addition | to assert with the principal claim |
| Lawyer's fees, RATG | Tariff according to the value of the dispute, only from 5,000 euros with legal guidance | Recoverable from the debtor |
In the event of success, the costs of proceedings must be imposed on the defendant and asserted with the principal claim in the order for payment. The condition is that the debtor is able to pay, otherwise the costs remain with the creditor. The exact court fee depends on the court fee law and changes regularly, the official sources are decisive. As of August 2026.
Up to a claim value of 5,000 euros, incaseof.law brings the Payment-order claim (Mahnklage) The partner law firm Biedermann & Belihart conducts the proceedings on this subject.
Customer voices
What clients say about handing over their claims.
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Right, money and rest, from one source
A solution that secures three things: your right, your money and your peace.
incaseof.law is a licensed collection agency in Austria and Germany with a model confirmed by the Supreme Court. Submit the payment-order claim digitally; we file it through ERV.
Licensed and confirmed by the Austrian Supreme Court
We prepare and electronically file the payment-order claim through ERV, under human supervision and within the legal framework. You do not need to attend court yourself.
100 % go to you
We retain no share of the principal. The debtor reimburses court fees and owes collection fees as an ancillary claim.
You keep control
You hand over the claim digitally and keep an eye on the status. If you want to be represented by a lawyer, you switch to the partner law firm with a click.
Start Now
Submit your outstanding claim in a few minutes.
Transfer your outstanding claim digitally, the rest will be carried out by incaseof.law, up to the request for payment order. If you have any questions, contact us in advance.
Common questions
Out of court or court: your questions.
From the duration to the costs to the legal obligation. Your question is not included? We answer personally.
Get in touchFrom our guides
Guidance for creditors and businesses.
How does debt collection in Austria work?
From handover to payment: the process of collection in Austria, step by step.
Read more
German payment orders: process and costs
If the out-of-court request is not enough, the way leads through the court to the enforceable title.
Read more
Customer does not pay: what you can do now
The quick way from open amount to payment. Which steps are useful and from when you pass.
Read moreSources and legal bases
- § 244 ZPO, payment procedure and value limit 75,000 Euro (RIS, 2026)
- § 248 ZPO, opposition to the order for payment, four weeks (RIS, 2026)
- Court Fees Act (GGG), Tariff Post 1 (RIS, 2026)
- § 1333 ABGB, late interest and late payment costs (RIS, 2026)
- Regulation on the maximum rates of debt collection institutions due, BGBl. No 141/1996 (RIS, 2026)
- § 118 GewO 1994, debt institutions (RIS, 2026)
- Order for payment procedure, explanation page of the Republic of Austria (2026)
- GISA, Business Information System Austria, GISA 32140156 (2026)
- Legal Services Register, Federal Office of Justice, Reg. No. 2024 0000 8388 (2026)
Last reviewed 21.08.2026