Debt Collection in Austria – the Payment Order Procedure

Outstanding receivables are one of the greatest liquidity risks for businesses and self-employed professionals. The Austrian payment order procedure (Mahnverfahren) is among the fastest and most effective judicial tools for enforcing monetary claims, enabling creditors to obtain an enforceable title without lengthy court proceedings.

We, at NZP NAGY LEGAL, as a German-Austrian law firm with offices in both countries, we are your dedicated partner for professional debt collection and receivables management in Austria – legally sound, digital, and fully transparent.

Mandatory procedure for claims up to EUR 75,000

A distinctive feature of Austrian law is that monetary claims up to a value of EUR 75,000 must first be pursued through the payment order procedure. Directly filing a standard lawsuit is not permitted in these cases. The legislator’s aim is to resolve disputes quickly and encourage debtors to pay at an early stage. For creditors, this results in a structured, fast and highly effective enforcement mechanism.

Pay or object – clear deadlines with serious legal consequences

Once the court payment order has been served, the debtor faces a clear choice. The claimed amount must be paid within fourteen days, or an objection must be filed within four weeks. Only a timely objection prevents the payment order from taking legal effect.

If no objection is filed, the payment order automatically becomes final and constitutes a fully enforceable title – even if the claim would not have been substantively justified. The creditor may then immediately initiate enforcement proceedings and compel payment. This legal consequence is what makes the Austrian system particularly powerful in practice.

One-stage procedure without additional enforcement steps

Unlike many other jurisdictions, the Austrian payment order procedure is deliberately streamlined. It is a one-stage system. If no objection is lodged, the payment order itself becomes enforceable. No further application and no separate enforcement order are required. This significantly accelerates the process and increases pressure on defaulting debtors.

Court fees payable in full at the outset

In Austria, the full court fee for the first instance is already due upon filing the application for the payment order. Should the debtor object and the matter turn into ordinary litigation, no additional court fees arise for the first instance. If the claim is successfully enforced, these costs are recoverable from the debtor.

 

Mandatory legal representation above certain thresholds

For claims exceeding EUR 5,000, the action must be filed by a qualified lawyer. Where the value exceeds EUR 15,000 and the case no longer falls within the jurisdiction of the district courts, the competent regional court hears the matter and legal representation is compulsory. Especially in higher-value disputes, strategic legal handling is crucial for speed and cost efficiency.

Brief comparison with the German system

While the Austrian procedure is one-stage and the payment order itself becomes enforceable, the system in Germany is two-stage. There, a separate enforcement order follows the initial payment order. Court fees in Germany are also charged in stages, whereas in Austria the full first-instance fee is payable immediately. Both systems are efficient, but the Austrian approach stands out for its speed and procedural clarity.

Receivables management that does not disappear into a black box

Many business owners experience the same frustration: a claim is handed over to a lawyer or collection agency, and then weeks go by without any updates. No transparency, no clear status, no control.

Does your debt collection get lost in the process?
Do you receive no updates from your lawyer?

We do things differently. Our digital receivables management system allows you to track the status of your claims at any time. You can see every step taken, upcoming deadlines and incoming payments in real time. No chasing for information – complete transparency at all times.

Your German-Austrian law firm for debt collection in Austria

With our cross-border presence, we combine in-depth knowledge of Austrian enforcement procedures with German legal experience. We support you from the first unpaid invoice through the payment order procedure all the way to enforcement – efficiently, strategically and with modern digital tools.

Whether you are pursuing a single outstanding claim or managing a larger receivables portfolio, we ensure that your money is recovered and your debt collection process works professionally.