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Overdue Payment Letter for Germany

Overdue Payment Letter Template for Germany

A formal written demand for payment under German law, specifically designed to address overdue accounts and establish the legal basis for default proceedings. The document incorporates key requirements from the German Civil Code (BGB), including specific references to payment terms, default interest rates, and statutory requirements for payment demands. It serves as both a collection tool and a legal prerequisite for further enforcement actions, containing all necessary elements to establish the debtor's default status (Verzug) under German law while maintaining professional business relationships.

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What is a Overdue Payment Letter?

The Overdue Payment Letter is a crucial document in German business practice, used when payment obligations remain unfulfilled after their due date. It serves as a formal reminder and demand for payment, incorporating specific requirements under the German Civil Code (BGB). This document is typically issued after informal reminders have been unsuccessful and before initiating legal proceedings. It must include precise details about the outstanding amount, original due date, and applicable default interest rates as per §§286 and 288 BGB. The letter establishes the legal status of default (Verzug) and is often a prerequisite for further legal action. It's designed to balance the need for effective debt collection with maintaining professional business relationships, while ensuring compliance with German legal requirements for payment demands.

What sections should be included in a Overdue Payment Letter?

1. Sender Details: Full legal name, address, and contact information of the creditor

2. Recipient Details: Full legal name and address of the debtor

3. Date: Current date of the letter

4. Subject Line: Clear indication that this is an overdue payment notice (Zahlungserinnerung/Mahnung)

5. Outstanding Amount: Clear statement of the total amount due, including the original amount and any accrued interest or fees

6. Payment Details: Original invoice details, due date, and length of delay

7. Legal Basis: Reference to relevant contract or legal basis for the debt

8. Payment Instructions: Bank account details and deadline for payment

9. Consequences: Statement of legal consequences if payment is not received by the specified deadline

What sections are optional to include in a Overdue Payment Letter?

1. Previous Communications: Reference to previous payment requests or communications - include if there have been prior reminders

2. Interest Calculation: Detailed breakdown of how default interest has been calculated - include if charging interest

3. Payment Plan Option: Offer of installment payments or alternative payment arrangements - include if willing to negotiate terms

4. Legal Action Warning: Specific warning about impending legal action - include if this is a final notice before legal proceedings

5. Collection Costs: Statement about additional costs that may be incurred through collection proceedings - include if relevant under the circumstances

What schedules should be included in a Overdue Payment Letter?

1. Invoice Details Schedule: Detailed list of all unpaid invoices with their respective numbers, dates, and amounts

2. Interest Calculation Schedule: Detailed breakdown of interest calculations showing base amounts, rates, and periods

3. Payment History Schedule: Record of any partial payments made and remaining balance calculations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Invoice Form

Sector

Sales

Cost

Free to use

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