Debt Collection Revolution Looms
Mixed

Debt Collection Revolution Looms

A draft bill released this week by the Federal Ministry of Justice (BMJV) proposes a significant expansion of electronic document submission within enforcement proceedings. The initiative aims to strengthen the electronic exchange of information, often referred to as the “electronic legal traffic” within the judicial system and reduce administrative burdens.

Currently, while initial applications and instructions in enforcement cases are frequently submitted electronically, supporting documentation required to verify prerequisites for enforcement often still relies on paper-based transmission. This hybrid system has been identified as both time-consuming and prone to errors.

The proposed legislation would mandate that, when applications and instructions are submitted electronically, supporting documentation – including certified copies and other paperwork – can also be transmitted digitally. Furthermore, the bill outlines stipulations for the electronic delivery of enforceable copies to enforcement officers.

Following any application or instruction in an enforcement case, all subsequent documents from lawyers and authorities to enforcement officers will be required to be submitted electronically. This obligation will be phased in to include other professional entities involved in the process, such as debt collection agencies. The bill explicitly establishes secure channels for communication with enforcement officers.

The draft also details the conditions under which enforcement officers can receive digital proof of authority for receiving payments. It further clarifies the process for demonstrating procedural power of attorney digitally, a requirement that will now be clearly defined for lawyers. This digital proof framework will extend to specific representatives in voluntary court proceedings and within certain specialist courts.

The proposed bill has been circulated to regional governments and professional associations and is now available for review on the BMJV website. Interested parties have until August 1st to submit feedback and comments.