Document background
The Debt Collection Settlement Letter is a crucial document used in Austrian debt recovery processes when a creditor wishes to propose a formal settlement of outstanding debt. It is typically employed when standard collection efforts have not resulted in full payment, and the creditor is willing to negotiate alternative terms to resolve the debt. The document must comply with Austrian legislation, including the ABGB (Austrian Civil Code) and Exekutionsordnung (Enforcement Act), and when applicable, the Konsumentenschutzgesetz (Consumer Protection Act). The letter should clearly state the original debt amount, any accrued interest or fees, the proposed settlement amount, and the terms under which the settlement offer is made. It serves as a legally binding document once accepted and can be used in future legal proceedings if necessary.
