Top-Rated Debt Collection Agency in Luxembourg
Fast and reliable debt collection in Luxembourg - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
Recover your debt in Luxembourg conveniently with the simplest solution.
Debitura focuses on debt recovery in Luxembourg and offers a diverse range of services. Our team of experienced professionals specializes in accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. With thorough knowledge of Luxembourg's debt collection laws and regulations, we provide efficient and effective solutions to help businesses recover outstanding debts.
We provide unwavering support throughout the entire process.
Tailored collection approach.
We have a team of over 500 experts who specialize in international debt collection.
Our services achieve a success rate of 87% while keeping the cost at its minimum.
The ultimate guide about debt collection in Luxembourg
Are you in need of assistance with recovering a financial claim from a business or customer located in Luxembourg? Look no further! Our team at Debitura has assisted countless other businesses in collecting debt in the country.
The process of collecting debt in Luxembourg can be difficult due to language and cultural differences, foreign laws and customs, and distance. However, working with a collection agency that is knowledgeable in the laws and customs of the country can make the process much simpler.
At Debitura, we prioritize the needs of our clients and strive to recover the debt while maintaining a positive relationship with the customer. Our fair and firm public relations approach prioritizes the protection of your reputation. If you are interested in understanding the Luxembourgian debt collection process in its entirety, continue to read our guide. If you prefer to work with a local law firm specializing in debt recovery in Luxembourg, we are available to assist you.
At Debitura, we offer an easy method for recovering your debts in Luxembourg and over 192 other nations. Begin now by submitting your claim. Within a day, we will evaluate your situation and present you with three complimentary quotes from debt collection lawyers in Luxembourg. Our approach combines a human-centered approach with advanced technology to achieve success and improve communication management. This comprehensive method delivers the outcomes you require while maintaining positive customer relationships. Furthermore, our network of debt collectors, lawyers, vendors, and suppliers are valued partnerships that enable us to complete the task at hand. We appreciate each of these connections, regardless of their size.
Begin the process of debt collection in Luxembourg today at no cost by signing up for a free profile and submitting your case in just two minutes.
Our pre-legal recovery process is a proven method to collect your claim within the first 3 months. It comes with a no-cure-no-pay guarantee.
If your claim remains unpaid during the pre-legal phase, we offer you three quotes from our nearby debt collection attorneys.
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Luxembourg
Are you struggling to receive payment from your customers in Luxembourg? Let us assist you in making the debt collection process simpler.
In Luxembourg, the individual or company who owes the debt is referred to as "the debtor" while the party who issued the invoice is known as "the creditor." If the creditor handles the collection process themselves, it is referred to as "first-party collection." If the creditor chooses to enlist the help of an external party, it is known as "third-party collections."
The debt collection process in Luxembourg
The typical method for collecting debt in Luxembourg involves a series of stages. The graphic below illustrates our standard procedure for debt collection in Luxembourg.
1 Upload your claim:
If you do not wish to handle the recovery of your debt on your own, you can begin the process by identifying a debt collection agency and submitting your claim through their website. With Debitura, we will offer you three quotes from regional partners in the European country that pertains to your situation, at no cost to you and with no hidden obligations.
2 Amicable collection:
At Debitura, we typically initiate the collection process by sending friendly reminders to the debtor through various communication methods such as email, SMS, and letter. Our aim is to prompt the debtor to either pay or acknowledge the debt and establish a payment plan. We also offer a no-cure-no-pay option for amicable collection, where you only pay a minimal fee if we successfully recover your debt. With Debitura, amicable collections are completely risk-free.
If the debtor has not paid you after attempting to resolve the issue amicably, it is time to assess potential next actions. We will consider the amount of your claim, the likelihood of receiving payment, and other relevant factors to help you determine the most appropriate course of action. Typically, there are three options to consider.
If the amount of your claim is less than $2,000 to $5,000, it may not be financially beneficial to pursue additional legal action. In such situations, we suggest utilizing "debt surveillance" where we continuously communicate with your debtor and work towards reaching a mutually agreed upon resolution.
B: Legal collections:
It is suggested to initiate a legal procedure for substantial claims. The specific procedure varies based on the nature and magnitude of your claim. Generally, the procedure is anticipated to take between 12-18 months.
C: Debt enforcement:
By using the bailiff's court, you can enforce your claim if the debtor has acknowledged it or you have a court order.
Amicable collection in Luxembourg
At Debitura, we provide a secure and highly effective method for amicable debt collection. By submitting your claim to us, we will begin the process within 24 hours. Our team will utilize all available communication channels in Luxembourg, including email, text messages, letters, phone calls, and social media to contact the debtor.
Our goal is to either:
A) obtain full payment from the debtor or
B) to have them acknowledge the debt and begin a payment plan.
However, if the debtor disputes your claim, an amicable resolution cannot be pursued and legal collections must be initiated.
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amicable debt collection
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Legal collection in Luxembourg
In the event that your claim remains unpaid during the amicable phase or the debtor contests it, we will offer you three complimentary quotes from local debt collection attorneys. During the legal phase, one of our local attorneys will contact the debtor and attempt to negotiate a payment. Additionally, our partners have the ability to seek a payment order through the Luxembourg legal system and use it to enforce your claim through the enforcement court.
The cost of legal fees can differ depending on the intricacy and magnitude of your case. To ensure you receive the most cost-effective option, we suggest obtaining multiple quotes from various lawyers. Utilizing Debitura, this can easily be done with just a few clicks.
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legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Luxembourg
You can use the bailiff's court in Luxembourg to enforce your claim in Luxembourg if you have either a written acknowledgement of your claim from the debtor or a court order.
The process and cost will differ depending on your individual situation. Submit your case to Debitura for three tailored quotes for your claim within 24 hours.
Get started with
Upload your claim and get 3 FREE quotes from our local collection partners.
European Late Payment Directive in Luxembourg
Because Luxembourg is a member of the European Union, the Directive 2011/7/EU on combating late payments in commercial transactions throughout Europe applies to the country.
The directive includes the following key elements:
- Public authorities are not allowed to demand payment terms that exceed 30 days.
- Private businesses are not allowed to have payment terms longer than 60 days.
- If the person or entity you are owed money from is a business, you can charge a minimum fee of €40 for late payment.
- The interest rates for overdue payments must be at least 8% higher than the European Central Banks benchmark rate.
Being a member of the EU, the Danish government is not permitted to establish regulations that are less favorable for creditors than the EEU-wide rules mentioned above.
The analysis is concluding that the risk of conducting business in Luxembourg is low. Based on this low score, You can feel reasonably confident that you will be able to get paid when trading with customers in Luxembourg. Nonetheless, we always recommend doing a specific credit analysis on an individual customer basis before offering any credit. The low risk score is based on the following factors:
The economic risk in Luxembourg
Economic risk in Luxembourg is very low (1 out of 6). An economic risk of 1 out of 6 is low in Europe.
GDP and economic growth are critical drivers for economic risk.
The GDP of Luxembourg is 86,71 bn. USD (2021), growing by 6,89% per year.
In terms of the size of its economy, Luxembourg ranks #63 out of 183 countries and has a medium-sized economy.
In terms of growth rate, it is ranked #51 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 135683 USD, ranking Luxembourg number #1 out of 183 countries. This means the purchasing power of citizens in Luxembourg is high compared to the rest of the world.
You get a more detailed idea of GDP and economic growth in Luxembourg in the table below:
Another huge impact for the economic risk score is the inflation rate and the interest rates. You get a more detailed idea of monetary KPIs in Luxembourg in the table below:
The inflation in Luxembourg was 2,5% in 2021 which is considered a low inflation rate.
The business environment risk in Luxembourg
Our analysis shows that the business environment risk in Luxembourg is very low (1 out of 6), which is a relatively low risk score in Europe.
The business environment risk are determined by the level of economic freedom and rights in a country. You can see the critical facts for Luxembourg in the table below:
As you can see above, the property rights index is 86 in Luxembourg, which is considered quite good in Europe.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 66 in Luxembourg, a quite low score for a country in Europe.
Luxembourg's overall economic freedom index is 76 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Luxembourg
The political risk in Luxembourg is very low, with a score of 1/6. This is a low political risk score in Europe.
The governance and political stability indicators are critical drivers for political risk. An overview of Luxembourg can be seen in the graphs below:
The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.
When doing business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Luxembourg, the rule of law index is at 1,79 points, with the score going from -2.5 (weak) to 2.5 (strong). Luxembourg has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.
Other drivers for the very low political risks are the very strong control of corruption, the strong political stability index, and the normal shadow economy that is 10,38% of Luxembourg's GDP.
The commercial risk in Luxembourg
In Luxembourg, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is relatively low compared to the average in Europe.
The commercial risk is impacted by a country's international trade relationships. You can see some of the key facts for Luxembourg in the table below:
Luxembourg has a foreign exchange reserve of 2.92 bn. USD.
Luxembourg has a positive trade balance of 35,39% of GDP. What this means is that Luxembourg imports fewer goods and services than the country exports.
The annual growth of exports of goods and services has been growing 9,74% annually - now 212,12% of GDP. Import of goods and services represents 176,73% of the GDP in Luxembourg.
The financing risk in Luxembourg
We have calculated the financing risk to be 1/4, which equals a very low risk. A very low financing risk score is relatively low for countries in Europe.
The country's banking system, efficiency, and stability influence the financing risk. You can find the extra information for Luxembourg in the table below:
In Luxembourg, the credit information sharing index is 0 on a scale from 0 (low) to 8 (high). This means the accessibility and quality of credit information available in Luxembourg is very low.
This makes it very difficult for you to understand the credit risk of your counterpart in Luxembourg. Unless you have a strong relationship with your customers in Luxembourg, we highly recommend charging payment upfront or using credit insurance.
Your juridical rights as a creditor are 3 out of 12 and, therefore, very weak.
Debt Collection in Luxembourg: Frequently Asked Questions (FAQ)
In Luxembourg, debt collection involves a debtor who owes a debt and a creditor who issued the invoice. There are two types of collection: first-party (handled by the creditor) and third-party (handled by an external party). The debt collection process in Luxembourg typically involves sending friendly reminders through various communication methods. If the debtor does not pay, there are three potential options: debt surveillance, legal collections, or debt enforcement. Legal proceedings may take up to 12-18 months. At Debitura, we offer a risk-free amicable collection process and can assist you throughout the entire process.
The debt collection process in Luxembourg typically includes pre-legal collection, legal debt collection, and debt enforcement. After submitting your claim, our agency initiates the collection process by sending friendly reminders to the debtor, followed by an evaluation of potential next actions. For smaller claims, we suggest utilizing "debt surveillance," while substantial claims should undergo legal collections, which can take 12-18 months. Debt enforcement via the bailiff's court is also an option if the debtor has acknowledged the debt or a court order is in place.
If a debt remains unpaid, a civil lawsuit is required in Luxembourg. Other legal options include debt enforcement and insolvency proceedings. It's important to note that legal actions require a local lawyer. Debitura can connect you with local debt collection attorneys who can negotiate with the debtor and seek a payment order through the Luxembourg legal system. To ensure the most cost-effective option, we suggest obtaining multiple quotes from various lawyers.
At Debitura, we offer a no-cure-no-pay model for pre-legal collection with a success fee between 10-20%. The cost for legal actions varies, depending on your specific case and desired actions. We can provide you with 3 quotes from the best debt collection lawyers in Luxembourg to help you make the most informed decision for your needs.
The duration of debt collection in Luxembourg varies depending on the debtor and case. If it's resolved in the pre-legal phase, it can take about 3-6 months. However, if legal actions are necessary, it can take 12-18 months. The actual duration is determined by several factors, and our debt collection experts can provide you with an accurate timeline based on your specific case.