Is it possible to reach a payment agreement in a “juicio monitorio”, the Spanish order for payment procedure?

Question

José Manuel Alburquerque · Accepted Answer

Yes, at any time, before the creditor files it, while the time limit for paying or objecting is running, in the court proceedings if you object and even during enforcement. But it depends on the creditor agreeing, because the law does not require them to accept payment in instalments. The prudent course is to put the agreement in writing and submit it to the court for approval, as a private agreement does not halt the proceedings. If it is then not complied with, the creditor will be able to apply directly for attachment for whatever remains outstanding. While you negotiate, the twenty working days for paying or objecting keep running, unless the court suspends the proceedings at the request of both of you. When an agreement can be made The law allows the parties to end the proceedings with an agreement at any time, including during enforcement. These are the most common moments: Before the order for payment procedure (“monitorio”). The law generally requires an attempt to reach an agreement before a claim is brought. In Barcelona, it is a criterion agreed by the court clerks (“letrados de la Administración de Justicia”) that this attempt must be made before the order for payment application is filed. If the creditor invites you to negotiate, that is the best time to propose a payment plan. During the twenty working days allowed by the demand for payment. If the creditor accepts your proposal, you can jointly ask the court to suspend the proceedings, for sixty days at most under the “Ley de Enjuiciamiento Civil”, Spain's Civil Procedure Act, or submit the agreement to it for approval. In the court proceedings, if you have objected, or during enforcement. The agreement can bring either of them to an end. How to make it watertight The agreement should be put in writing and signed by both of you. It should set out the following: The total amount to be paid, with whatever interest and expenses are included. The payment schedule and the account into which the payments are made. What happens if a payment is late, normally that the creditor can claim everything outstanding in one go. What is to be done with the proceedings, for example that the creditor will bring them to an end once you have finished paying. The safest course for both of you is to submit the agreement to the court for “homologación”, that is, to have it approved by the court. If you comply with it, the matter is closed. If you do not, the creditor can apply for enforcement of whatever remains outstanding without the need for further proceedings. If, on the other hand, you sign a private agreement and nobody informs the court, the time limit keeps running and, when the order for payment procedure ends, the creditor could apply for enforcement of the whole debt. Pay by bank transfer and keep the receipts. If the creditor does not agree The court cannot force the creditor to give you more time to pay, because the Spanish Civil Code (“Código civil”) does not require them to accept partial payments unless these were agreed. If you owe the whole amount, objecting without grounds to buy time is not a way out, because if you lose the case you will also have to pay the costs, which are mainly the fees of the other side's lawyer and court agent (“procurador”). If you dispute part of the debt, you can object within the time limit to that part only and acknowledge the rest. Before offering a payment plan, also check that the debt is not time-barred, because offering to pay it amounts to acknowledging it.