Debt & Insolvency Law in Austria: Collection, Enforcement and Privatkonkurs

Debt problems in Austria tend to move through a recognisable sequence. A private debt collector contacts the debtor first, a court enforces the debt if collection does not resolve it, and, in the more serious cases, a structured personal insolvency procedure offers a way out for a debtor who genuinely cannot pay. Each stage sits under a different law, with a different set of powers for the creditor and a different set of protections for the debtor.

This hub orients across all three stages: Inkasso (debt collection), Exekution (court enforcement) and Privatkonkurs (personal insolvency). Each section below summarises the stage and links to a dedicated page with the full rules, the fee tables or duration figures, and worked examples.

The distinction between the stages matters in practice more than the shared vocabulary suggests. A debt collector has no legal power to take anything from a debtor. A court enforcing a judgment does. And a debtor who still cannot pay after enforcement has a further, structured route to a discharge of what remains unpaid.

Information last verified on 22 July 2026. This page provides general legal information about Austrian law and does not constitute legal advice in an individual case.

The Three Stages of an Austrian Debt Problem

Nearly every unpaid debt in Austria starts the same way: the creditor, or an agency acting for the creditor, asks for voluntary payment. Most debts are resolved at this first stage and never reach a court at all.

If that request goes unanswered and the creditor pursues the claim, the next step is usually a court Mahnverfahren, and, if the debt is confirmed, an enforceable title. Only once that title exists can Exekution, court-ordered enforcement, begin against the debtor's income or assets.

A debtor who cannot realistically satisfy a debt even at that stage, or who is facing several debts at once, can apply for Privatkonkurs, the personal insolvency procedure. It runs on entirely different rules from the first two stages and ends, if completed, in a discharge of whatever remains unpaid.

Debt Collection (Inkasso) at a Glance

An Inkassoinstitut is a private company collecting a debt on a creditor's behalf. Operating as one is a regulated trade under the Gewerbeordnung, and the company itself has no enforcement power at all: it cannot enter a home, seize an item, or touch a bank account.

What an Inkassoinstitut may charge the debtor is capped by the Inkasso-Verordnung, a regulation that sets tiered maximum fees by the size of the original claim, with separate, lower caps for a third reminder and every reminder after it. A debtor also only owes a collection cost that is necessary and proportionate to the claim under § 1333 Abs 2 ABGB, which is often the stronger practical argument in a dispute than the numeric caps alone.

The full tiered fee schedule, a worked example of what a collector may lawfully add to a given invoice, and how to write a dispute letter are covered on the debt collection page.

Enforcement (Exekution) at a Glance

Exekution is court-supervised enforcement, and it cannot start from an unpaid invoice alone. The creditor first needs an Exekutionstitel, an enforceable legal title, most commonly a final court judgment or an unopposed court payment order.

Once a title exists, the Exekutionsordnung (EO) gives a creditor three main routes: Fahrnisexekution against movable property, wage or account garnishment against income the debtor holds a claim to, and Zwangsversteigerung, the forced judicial sale of real estate. A portion of the debtor's income is always protected from garnishment through the unpfändbares Existenzminimum, a floor tied to a pension reference value that is reset every Jänner and rises for a debtor supporting dependents.

The three enforcement routes, how the Existenzminimum is calculated, and the 2021 reform of the EO's procedural rules are covered on the enforcement page.

Personal Insolvency (Privatkonkurs) at a Glance

Privatkonkurs is the everyday name for the Schuldenregulierungsverfahren, the insolvency procedure for natural persons under §§ 181 to 216 of the Insolvenzordnung (IO). It offers two routes: a negotiated Zahlungsplan first, and a court-supervised Abschöpfungsverfahren if creditors do not accept the Zahlungsplan or the debtor cannot realistically propose one.

A rule that governs how long the Abschöpfungsverfahren runs changed at the end of 16 July 2026. For a private individual whose application reaches the court on or after 17 July 2026, the only variant available is the Abschöpfungsplan, running five years. Entrepreneurs keep the three year Tilgungsplan regardless of when they file, and a consumer whose application reached the court before 17 July 2026 also keeps the three year plan to its conclusion.

The two routes, the grandfathering rule, and a worked example comparing the Zahlungsplan and Abschöpfungsverfahren outcomes are covered on the personal insolvency page.

Which Stage Applies to You

An unpaid €500 invoice illustrates how the stages connect. If it goes to an Inkassoinstitut first, the collector's fees are capped by the Inkasso-Verordnung, and the debtor can still dispute the underlying claim directly with the creditor at this point. If it is not resolved and the creditor sues, an unopposed court payment order becomes an Exekutionstitel, opening the door to Exekution, most often wage garnishment down to the Existenzminimum.

A debtor facing several such debts at once, or one debt they cannot realistically pay off even through ordinary enforcement, is the situation Privatkonkurs is built for. It does not skip the earlier stages: a debtor can be in active Exekution and still apply for personal insolvency, and the insolvency filing does not retroactively undo collection costs or enforcement steps already lawfully taken.

Recognising which stage a debt has actually reached matters because the rights involved are different at each one. A demand from a collector is not a court order, and a court order is not automatically an insolvency filing; each has its own deadlines and its own defences, covered in full on the three linked pages above.

Related Austria Law Topics

This debt and insolvency section sits inside the site's wider coverage of Austrian law, including employment, tenancy and family law topics that share the same statutory framework and the same distinction from German and Swiss law. See the Austria overview for the rest of the site's Austrian legal coverage.

Frequently Asked Questions

What is the difference between Inkasso, Exekution and Privatkonkurs in Austria?

Inkasso is private debt collection with no legal enforcement power, capped by the Inkasso-Verordnung. Exekution is court-ordered enforcement of an existing legal title under the Exekutionsordnung. Privatkonkurs is the personal insolvency procedure under the Insolvenzordnung for a debtor who cannot pay at all.

Can a debt collector in Austria seize my property or freeze my bank account?

No. An Inkassoinstitut has no enforcement powers. Only a court, after issuing an enforceable title, can authorise Exekution measures such as wage garnishment, seizure of movable property or a forced sale of real estate.

How long does Austrian personal insolvency take now?

For a private individual whose application reaches the court on or after 17 July 2026, the Abschöpfungsverfahren runs as a five year Abschöpfungsplan. Entrepreneurs, and consumers who filed before that date, keep the three year Tilgungsplan.

Does every unpaid debt in Austria eventually go through all three stages?

No. Most debts are resolved at the Inkasso stage or through a court Mahnverfahren without ever reaching Exekution, and the large majority of debtors never need to apply for Privatkonkurs.

What income is protected if my wages are garnished in Austria?

The unpfändbares Existenzminimum under § 291a EO protects a portion of income tied to a pension reference value, and the same protected floor also applies throughout a Privatkonkurs Abschöpfungsverfahren.

Where can I find the exact fee caps a debt collector can charge in Austria?

The tiered maximum fees under the Inkasso-Verordnung, along with a worked example and how to dispute an excessive bill, are set out on the dedicated debt collection page linked from this hub.

Is Privatkonkurs the same for consumers and entrepreneurs in Austria?

No. Since 17 July 2026, only entrepreneurs and consumers who filed before that date keep access to the three year Tilgungsplan. A private individual filing from that date onward is limited to the five year Abschöpfungsplan under § 199 Abs 2 IO.