Most commercial debts recovered in Spain never see the inside of a courtroom. They're resolved in the pre-legal phase — the structured period between your first overdue notice and the moment a Spanish attorney files a court petition. Understanding how this phase works explains why it's the most cost-effective stage of debt recovery and why rushing to litigation is usually a mistake.
The Pre-Legal Timeline
Days 1–30: Initial professional contact. Your collection agency makes first contact with the debtor within 48–72 hours of engagement. This isn't a polite reminder — it's a structured communication establishing that a professional is now managing the case, that the creditor has engaged local capability, and that specific legal options are available if payment isn't forthcoming. The tone is firm but professional. The goal is to move the debtor from ignoring you to engaging with the agency.
Days 15–45: Escalating pressure. If initial contact produces promises but not payments, the agency increases pressure through multiple channels: additional phone calls, formal written demands, and — where warranted — a field visit to the debtor's premises. The visit is particularly effective in Spain, where commercial culture places significant weight on face-to-face interaction. A debtor who can comfortably ignore emails from abroad struggles to ignore an agent standing in their reception area.
Days 30–60: Formal demand with legal reference. A burofax (Spain's certified mail with legal weight) or formal demand letter referencing specific provisions of Ley 15/2010 and the debtor's statutory obligations. This communication explicitly states that legal proceedings will be initiated if payment isn't made by a specified deadline. It serves dual purposes: applying direct pressure and creating the documented record of good-faith collection attempts that Spanish courts expect to see before litigation.
Days 45–90: Pre-legal attorney demand. If the formal demand doesn't resolve the matter, a Spanish attorney issues a pre-legal warning. This is the last step before filing. The attorney's letterhead signals that legal preparation has begun and the creditor is committed to enforcement. For many debtors, this is the tipping point. The cost (€300–€800) is modest relative to the signal value.
Why Pre-Legal Resolution Is Worth Prioritising
Cost. Pre-legal resolution on no-win, no-fee terms costs 5–15% of the recovered amount. Legal proceedings add €1,000–€15,000 in attorney fees and court costs depending on the claim. The cost differential is substantial.
Speed. Pre-legal resolution typically takes 30–90 days. Legal proceedings add 2–18 months depending on whether the debtor contests. For cash-flow-sensitive creditors, the time value alone justifies prioritising amicable resolution.
Relationship preservation. A professionally handled amicable collection can preserve the commercial relationship. Litigation almost never does. If the debtor is a client you'd work with again — once the payment issue is resolved — pre-legal resolution offers a path back to normal business.
When Pre-Legal Isn't Enough
Some debtors won't pay without a court order. The signs: complete silence after multiple contact attempts, tactical disputes raised for the first time months after delivery, or explicit refusal to pay. For these cases, the pre-legal phase has done its job — it's documented your good-faith efforts, established the debtor's unwillingness to engage, and prepared the ground for the monitorio payment order that follows.
A competent agency recognises when pre-legal efforts have reached their limit and recommends legal escalation with a clear cost-benefit assessment. Prolonging amicable efforts against a debtor who has no intention of paying voluntarily wastes time and recovery probability.
FAQ
How do I know if my case is still in the pre-legal phase?
If no court documents have been filed, you're pre-legal. The transition point is when your agency's attorney formally files a petition (typically a monitorio payment order) with a Spanish court. Everything before that — phone calls, demands, field visits, attorney warning letters — is pre-legal activity.
Can the debtor use the pre-legal phase to hide assets?
It's a legitimate concern. Debtors who suspect legal proceedings may attempt to restructure their finances. Your agency should monitor for warning signs: unusual transactions, changes in corporate structure, or transfers of assets. In extreme cases, a precautionary asset seizure (embargo preventivo) can be requested before formal proceedings begin.
María Solé
💥 Madrid-based Legal Counsel / Spanish Commercial Law & Cross-Border Enforcement Specialist
