Unpaid bill or debt collection letter in Germany: what to do
2 min read · 7 steps · Updated 2 October 2026
Do not ignore it. Check first whether the claim is real: did you order this, and from this company? If yes, pay or ask for instalments at once, because every further letter adds fees. If no, object in writing. If a yellow envelope from a court arrives, you have two weeks to object.
A missed payment in Germany moves through fixed stages: reminder, formal warning, collection agency, court order, bailiff. Each stage costs more, and each can be stopped. Fake collection letters also circulate, so the first job is always to check.
Rules, amounts and deadlines change. Check the official source named at the end before you act, and ask the office in your city, because procedures differ from town to town.
This is general information, not legal advice. For your own case, speak to a lawyer or an advice centre.
Step by step
Know when you are late
An invoice names a date or a period, for example payable within 30 days. After that you are in default, even without a reminder. Companies usually send a reminder and then a formal warning (Mahnung) with a fee, but they do not have to.
Check a collection letter
A letter from a collection agency (Inkassounternehmen) must say which company is owed the money, what for, the date of the contract or order, and how the amount is made up. The agency must be registered. You can look it up free of charge at rechtsdienstleistungsregister.de.
If the claim is right: pay or negotiate
Pay the original company or the agency and keep the proof. If you cannot pay at once, write and offer instalments you can really keep up. Do not sign an acknowledgement of debt you do not understand.
If the claim is wrong: object in writing
Write that you dispute the claim and why, for example that you never ordered, already paid or cancelled in time. Send it by registered post or with proof of sending. The consumer advice centres offer a free online tool, Inkasso-Check, that tests the letter and drafts your reply.
Never ignore a court letter
A court order for payment (Mahnbescheid) comes in a yellow envelope with the delivery date written on it. If you do nothing, the claim becomes enforceable, whether it was right or not. You have two weeks from delivery to tick the objection (Widerspruch) on the form inside and send it back to the court.
If an enforcement order follows
After the Mahnbescheid comes the Vollstreckungsbescheid, again with two weeks for an objection. After that a bailiff can come or your account can be frozen.
Get debt counselling early
Free debt advice centres (Schuldnerberatung) are run by towns, charities such as Caritas and Diakonie, and consumer advice centres. They negotiate with creditors and help protect the money you need to live on. Beware of commercial "debt helpers" who charge fees.
Good to know
Unpaid, undisputed debts can be reported to Schufa and make it hard to rent a flat or get a phone contract: Schufa in Germany: what it is and how to get your free report.
If your account is frozen, ask your bank at once to convert it into a protected account (P-Konto). A basic amount each month is then safe from seizure.
Threats of arrest, deportation or a visit "tomorrow" in a collection letter are a sign of a dubious sender. Only a court can order enforcement.
Subscriptions you forgot are a common cause: forgotten subscriptions: how to find and cancel them.
In short: Check the claim and the agency, pay or agree instalments if it is right, object in writing if it is wrong, answer a yellow court envelope within two weeks, go to free debt counselling.
- Handbook Germany: Unpaid Bills
Rules and prices change. Check the official source before you act.