If the debtor still does not pay, despite the pre-trial procedures and out of court services described in the above paragraph, arbitration might be an option as an alternative to litigation.
Arbitration as an alternative dispute resolution method
Agreeing on an out of court arbitral tribunal has several advantages compared to the regular legal proceedings:
- no appeal option,
- cost efficiency,
Agreement with the debtor is necessary
In case you have foreseen an "arbitration clause" in your contractual agreement with the debtor, we will initiate the arbitration proceeding according to the details contained therein. An arbitration clause typically states that in case of a contractual dispute the parties are obliged to settle the dispute out of court with a certain arbitration procedure.
You can also persue out of court arbitration if you intend to solve the matter out of court and if the debtor agrees to this dispute resolution method.
Arbitration rules in Germay follow the UNICITRAL Model Law on International Commercial Arbitration and is carried out alternatively by:
- German civil courts,
- Chambers of commerce,
- Professional arbitrators.