A standard collection agency makes phone calls, sends demands, and applies pressure. A commercial collection law firm does all of that and can also file a monitorio, represent you in court, execute an asset seizure, and enforce a judgment. The difference matters when your debtor calls your bluff — and in Spain, they often do.
When You Need a Law Firm vs. a Standard Agency
Standard agency territory: debts under 90 days old where the debtor is communicating, the amount is undisputed, and amicable resolution is likely. For these cases, a competent collection agency with no-win, no-fee terms is the right choice. The legal capability exists as a backstop but probably won't be needed.
Law firm territory: debts where the debtor has stopped communicating, raised a tactical dispute, threatened insolvency, or where the amount exceeds €100,000 and the stakes justify more aggressive legal positioning from the outset. Also essential when pre-emptive asset protection measures (embargo preventivo) are needed before the debtor restructures.
The ideal setup is an agency with integrated legal capability — collection professionals handling the amicable phase with attorneys on staff for seamless escalation. This avoids the handoff delays and information loss that occur when an agency refers a failed case to an external law firm that's seeing the file for the first time.
What Commercial Collection Lawyers Do Differently
Monitorio filing with strategic positioning. An attorney doesn't just file the paperwork — they structure the claim to anticipate the debtor's likely objections. If the debtor is expected to contest, the filing is prepared with evidence that addresses those objections proactively, reducing the risk of a successful challenge.
Precautionary measures. Spanish law allows creditors to request embargo preventivo (precautionary asset seizure) when there's a risk the debtor will dissipate assets before judgment. This is a powerful tool that requires legal expertise to execute properly — the court needs to be convinced that the risk is real and the creditor's claim is well-founded.
Insolvency navigation. If the debtor is approaching or has entered concurso de acreedores (insolvency proceedings), your position as a creditor depends on legal expertise. Filing claims within the insolvency timeline, challenging the debtor's proposed creditor rankings, and negotiating within the concurso framework all require specialised legal knowledge.
Cross-border enforcement. Enforcing a Spanish judgment in another EU country — or enforcing a foreign judgment in Spain — requires understanding both the EU enforcement framework and Spanish procedural law. A commercial collection law firm navigates both.
Costs and Fee Structures
Commercial collection law firms in Spain typically operate on one of three models:
Contingency (no-win, no-fee) for amicable phase. Standard 5–15% commission on recovered funds, same as collection agencies. The legal capability is included but not separately charged unless court proceedings are initiated.
Fixed fees for legal proceedings. Monitorio filings typically €1,000–€3,000. Juicio ordinario representation €3,000–€15,000 depending on complexity and claim amount. Court costs (tasas judiciales) are additional and proportional to the claim.
Hybrid models. Reduced contingency commission plus fixed legal fees, or contingency that covers both amicable and legal phases at a higher percentage. The right model depends on the debt amount, complexity, and your risk tolerance.
FAQ
Do I need a separate law firm if my collection agency has in-house lawyers?
Usually not. An agency with qualified Spanish attorneys (abogados) on staff provides the same legal capability as an external law firm, with the advantage of continuity — the same team that handled amicable collection manages the legal phase. External firms are only necessary if the case involves unusual legal complexity or conflicts of interest.
Can a Spanish law firm handle my case if I'm based outside the EU?
Yes. Spanish courts and legal procedures are accessible to creditors regardless of nationality. You provide documentation and a power of attorney; the firm handles everything in Spain. You don't need to be an EU company or have any Spanish presence to pursue legal recovery.
María Solé
💥 Madrid-based Legal Counsel / Spanish Commercial Law & Cross-Border Enforcement Specialist
