Is it economically sensible to pursue legal action if the debtor is insolvent anyway? A sound credit check helps answer this question in advance. However, the system has weaknesses—and KLEVERBILL shows you how to manage risks more effectively.

What is a credit check?

A credit check is used to assess a person’s ability to pay—especially whether a debtor is able to settle outstanding invoices.

For private individuals, creditworthiness is mainly influenced by so-called 

negative markers , e.g.:

• Unpaid invoices

• Payment order notices or enforcement orders

• Court judgments related to claims

• Entries with credit bureaus (e.g. Schufa, Regis24)

This information is incorporated into the so-called score value used by credit agencies for assessment.

What happens in the case of poor creditworthiness?

If a person has poor creditworthiness, caution is advised—especially if legal proceedings or a payment order are being considered.

Practical example:

• An invoice is not paid

• Dunning proceedings are initiated

• A court-enforceable title is obtained

• Schufa receives an entry

• The debtor now has negative creditworthiness

Question: Under these conditions, is it worth investing in further measures—or is the money lost?

When is legal action worthwhile despite poor creditworthiness?

Particularly for smaller claims (e.g. below €1,500), the economic downside in case of failure is manageable. KLEVERBILL therefore recommends obtaining titles for small amounts quickly as a rule—even when creditworthiness is poor.

The situation is different for larger claims (from €5,000 or €10,000). Here, court costs and additional fees can increase significantly. Negative creditworthiness can then become a substantial financial risk.

But: Creditworthiness is not the same as ability to pay

• A student with a negative Schufa entry may now be a permanently employed professional with secure income.

• Credit reports are often not up to date or only partially meaningful.

• Negative creditworthiness does not automatically mean there is no liquidity.

That is why KLEVERBILL assesses every situation individually —based on credit data, experience, and claim volume.

What role does the limitation period play?

If you decide against obtaining a court title for a claim, it becomes time-barred after three years at year-end.This means:📅 Claim from 2022 → limitation expires at the end of 31/12/2025

But be careful: 

Even a time-barred claim can still be pursued— as long as the debtor does not raise a limitation defense.

If a claim becomes time-barred during legal proceedings and the debtor files an objection, the proceedings must be discontinued, and all costs remain with you.

What is the benefit of an enforcement title?

If you choose to obtain a title despite poor creditworthiness, it can pay off in the long term:

✅ The title remains valid for 30 years

✅ Enforcement action can be initiated every 2 years

✅ As soon as the debtor regains liquidity, you can take action

Within the scope of enforcement proceedings, we also use credit checks to assess whether renewed action has a realistic chance of success.

Credit checks with KLEVERBILL: data from multiple sources

KLEVERBILL uses a broad network of reputable providers for credit reports:

• Creditreform

• EuroPro

• Regis24 (independent & exclusive in Germany)

• D&B (Dun & Bradstreet)

• Deutsche Postadress

This data is automatically integrated into our processes to support well-founded decisions on next steps—whether legal proceedings, dunning stop, or title acquisition.

Credit checks—valuable, but not infallible

A credit check is a valuable tool, but not an absolute basis for decisions. Strong process integration determines whether proceedings are economically viable—especially for larger claims.

KLEVERBILL helps you use credit data strategically, assess risks correctly, and manage claims processes efficiently.

💡 And sometimes the legal route is worthwhile—even with negative creditworthiness.