Enforcement title

What it means

An enforcement title is a decision or deed on the basis of which a creditor can enforce a claim through enforcement proceedings. Without it a bailiff may not act, however obvious and undisputed the debt.

The most common titles are an enforceable judgment, a payment order, a European order for payment, an arbitral award and a court-approved settlement. A notarial deed in which the debtor consents to enforcement is also a title, as are decisions of administrative authorities, including a tax assessment decision.

The title must be enforceable: the decision final, the deadline for performance passed and the obligation defined precisely enough. A vague title, for example without an exact amount, cannot be enforced.

How it works in practice

In debt collection for clients, obtaining a title is the first goal. For an undisputed debt a payment order is fastest, and for larger deals it pays to agree a notarial deed with consent to enforcement in advance, which replaces court proceedings altogether.

The state enforces its claims without a court: a tax assessment decision or a statement of arrears is a title for tax enforcement, conducted by the tax office itself. A company can therefore face a bank account garnishment sooner than it expects.

A claim awarded by a decision is time-barred after a longer period than an ordinary claim, but a limit still exists. If the debtor acknowledges the debt in writing, the running of the period changes, and an acknowledgement in a notarial deed can itself be a title.

What to watch out for

The title is only the beginning. If the debtor has no assets or income, enforcement ends without result and the creditor bears part of the costs. Before going to court we therefore check the debtor’s assets and creditworthiness so that costs do not exceed what can be recovered.

In enforcement against wages, payroll deductions are limited by a protected amount and an order of priority, so recovering from an employee takes years. In long-running enforcement the limitation of the right to enforce must also be watched, as it can arrive before the creditor notices.