Understanding a Monitorio process in Spain or a Fast Track Unpaid Debt Claim

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Introduction

A monitorio process in Spain is a fast-track unpaid debt claim procedure. It applies when there are clear invoices or evidence). This judicial method allows clients to recover debts without the need for lengthy litigation provided the debtor does not contest the claim. It is often used for Communities wishing to claim community fee debts.

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What is a Monitorio?

A monitorio is a type of legal procedure used in Spain to claim outstanding debts. It can be initiated by an individual or a business against a debtor. The key advantage of the monitorio process is that it is generally quick and easy. This process is ideal for creditors who have a clear claim, such as an unpaid invoice or loan, but who have not received payment despite prior attempts to get paid.

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The Process of a Monitorio in Spain

1. The first step would be to send a legal letter by burofax and probably by email (even WhatsApp as well). This is the fastest way to try and reach an agreement before Court. The burofax has to be signed for and shows a serious attempt has been made with the debtor. The client pays a minor fee for this letter.
2. The next step for a monitorio is filing a legal claim with the local court. This claim must be accompanied by supporting documentation that is proof of the debt. This may include invoices, contracts, delivery notes, or any other relevant evidence that proves the debtor has to pay.
   Important: The claim is submitted to the court in the jurisdiction where the debtor is located or where the contract was executed. At this stage, the client will pay the barrister based on the amount of the claim. If the sum is relatively small, then we advise against filing a claim and our team could not assist.
3. Once the court has received the claim and reviewed the paperwork, it issues an order to pay the amount owed within 20 days. The debtor is informed of the claim and given a chance to settle the debt voluntarily. Although the Court should process the documentation quickly, they can be slow in our local areas.
   If the debtor agrees to pay within 20 days, the process ends, and the creditor is reimbursed. However, if the debtor does not respond or disputes the claim, the process continues.
4. Debtor’s Response During the 20-day period – the debtor has three options:
   o Pay the Debt: If the debtor pays the full amount owed, the case is finished.
   o Contest the Claim: The debtor can contest the claim by filing an objection to court. Then the case will proceed to a full civil trial where both parties present their arguments and evidence.
   o Do Nothing: If the debtor does not respond within 20 days, the creditor can request the court for a an enforcement order. This allows further action such as seizing assets to satisfy the debt.
5. Enforcement of the Judgment allows the creditor to take more aggressive steps to collect the debt. Such as placing embargoes on the debtor’s property or seizing wages. This enforcement procedure again takes time and carries an additional cost.
6. In the case of a contested monitorio: there will be a civil hearing where both parties will present their arguments. Then the Judge will issue a ruling. If the judge rules in favour of the creditor, again the enforcement process will begin.
   

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European Monitorio Process

In addition to the monitorio process in Spain, it is also possible to claim debts in other European countries using the European Order for Payment (Monitorio Europeo). This process allows creditors to recover cross-border debts within the EU in a simple and standardized manner. The European monitorio is particularly useful for businesses or individuals who need to claim debts from debtors located in another EU country. It avoids the need to engage in lengthy and costly litigation in foreign courts. If the debtor does not contest the claim, the order becomes enforceable in any EU member state. This legal procedure follows a similar structure to the Spanish monitorio. However is specifically designed for cross-border claims within the EU. Molina Solicitors can assist with all these types of claims.

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Benefits of the Monitorio Process

• Speed: The monitorio process is designed to be quicker than traditional litigation. There is no pre-trial then waiting for a main hearing (unless it becomes a civil process). However, courts are still slow at the moment. It can still take a long time but is better than a full civil trial.
• Low Costs: The procedure is less expensive than going through a full trial.
• Simple Process: The monitorio procedure is generally less complex than a full civil case.

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When Should You Use the Monitorio Process?

If you have a debt or loan that remains unpaid in Spain and you have a clear claim and proof, then contact us or a solicitor in the appropriate local area where the debtor is based or the contract was executed.

Please note that this procedure is usually used for cases of unpaid invoices, loans, or obligations by contract. It is not suitable for claims involving complex legal matters or when there is a dispute over the actual amount. We can still assist with these types of claims but it would be a different type of proceeding.

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