Glossary. 

If debts to banks are not repaid as agreed, a surcharge (default interest) is levied in addition to the agreed interest rate from the time when the default begins. In non-bank transactions, default interest is usually charged from the due date.

A document issued by a court of law which records the creditor’s claim against the debtor.

A judgment (or payment order) becomes final (i.e. enforceable) when the period for objection has expired.

The guarantor is treated like a co-debtor, but not until the principal debtor has failed to fulfil their payment obligations despite being requested and reminded as appropriate.

A judgment (or payment order) becomes final (i.e. enforceable) when the period for objection has expired.

A notices indicating that the payment is due. This is unnecessary if the due date is clearly laid down in the contract between the creditor and debtor, or if the debtor has accepted the terms and conditions. If the creditor is a bank, a repayment notice must be sent before collection measures are begun.

Once a final judgment (or payment order) has been issued, the creditor can apply for enforcement actions, like salary and/or chattel pledge against the debtor. The salary pledge involves seizing part of the debtor’s income, while the chattel pledge involves the debtor’s movable and/or immovable goods.

The terms and conditions on which a provider of a service, or seller of merchandise, is prepared to do business. Usually, the terms and conditions are accepted by the customer if he enters into the contract with such provider or seller.

In the course of a salary pledge, the debtor’s employer (referred to as the third-party debtor) is requested to disclose detailed information about the debtor’s income. This information is mandatory. Unless another creditor already pledged the debtor’s salary, the creditor is then entitled to directly receive the attachable part of the debtor’s salary from the debtor’s employer (also AMS [Labour Market Service in Austria] or PVA [Social Security Offices in Austria]).