Cross-border debt recovery in Luxembourg

Direct answer. First establish the claim with a formal notice, then choose the procedure according to whether the debtor contests it and where its assets are. In the EU, an uncontested claim is usually recovered by a European order for payment; a contested claim goes through an action on the merits, whose judgment then circulates without exequatur.

Order matters: a precise formal notice sets the starting point of default interest and prepares proof of the claim. The competent court depends on the contract, in particular any jurisdiction clause, and on the Brussels I bis Regulation.

Direct answer. Yes, but the route depends on the debtor's State. Outside the EU the European regulations do not apply: recognition of a Luxembourg judgment is governed by the applicable international conventions or by the local law of the State concerned, which often requires exequatur proceedings before a local judge.

Before incurring costs, the firm checks three points: the existence of attachable assets in the debtor's State, whether a decision can be enforced there, and the cost of the procedure relative to the amount of the claim. It then coordinates a local correspondent.

Direct answer. Between businesses, late payment gives rise to default interest and a fixed sum for recovery costs, under the conditions set by Directive 2011/7/EU and the Luxembourg law that transposes it. The rate and starting point must be checked against the contract and the applicable text.

Within the limits fixed by law, the contract and general terms apply: an abusive payment term or interest rate can be set aside. The firm calculates the interest in the formal notice so that it can be included in the order for payment application.

Direct answer. The European account preservation order freezes funds held in another Member State before or during the main proceedings. The creditor must show a likely right to the claim and a real risk that later enforcement would be compromised without the measure.

The application is made without the debtor being informed beforehand, so that accounts are blocked before any transfer of funds. The creditor must, however, weigh its liability if the measure is later found unjustified.