Payment Default

Payment default occurs when a person or business fails to make a due payment on time. For instance, if you don’t pay your rent by the 3rd of the month, you are in payment default.

For residents in Germany and Austria, it’s important to know that under § 286 BGB (German Civil Code), payment default occurs automatically if the payment isn’t made by the agreed deadline. This can lead to late fees or legal actions. Common mistakes include ignoring deadlines or failing to respond promptly to reminders.

Related documents on DokBrief:

• Payment Reminder — Reminder for due payments