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Debt Collection Mexico:
we recover your money
Do you have outstanding invoices in Mexico that just don’t get paid? Collection Company is ready to collect the outstanding debt for you. As an international debt collection specialist, we have years of experience in collecting claims abroad.
We work with an extensive network of Mexican debt collection lawyers and bailiffs. They are familiar with the laws and regulations regarding debt collection practices in Mexico and know exactly how to collect your money (through the Mexican court).
- Nationwide coverage in Mexico
- One dedicated English speaking contact
- Proven track record
- Tailor-made services for each case
- Expert advice and a transparent process
- 24/7 online access
Specialized in debt collection in Mexico
If you are dealing with a defaulter in Mexico, it’s crucial to take action as soon as possible. The longer you wait, the greater the chance that there will be nothing left to recover from your debtor.
You might be hesitant about initiating a debt recovery process in Mexico – after all, you’re not familiar with the local laws and the Mexican legal system – but at Collection Company, we know exactly which debt collection efforts are needed to collect your money as quickly and efficiently as possible. As mentioned, we work with local lawyers and attorneys who specialize in Mexican debt collection.
The great advantage of the Collection Company’s approach is that you have an English-speaking point of contact. This debt collection specialist coordinates the process and keeps you informed of the progress. Thus, you won’t experience any inconvenience from the time difference with Mexico. Also, you won’t face a language barrier if you don’t speak Spanish.
Do you want an estimate of the success rate of your Mexican claim? Request a free and non-binding consultation.
Why choose Collection Company for your debt collection in Mexico?
- Global coverage
- One dedicated English speaking contact
- Experienced debt collection specialists with knowledge of Mexican legislation
- Broad network with local lawyers and bailiffs
- Seamless connection from extrajudicial to judicial action
- Effective local approach
- 24/7 tracking through your own Online Cockpit
Submit your claim
Do you have any unpaid invoices or other outstanding claims in Mexico? For more information about our debt collection process fill in your contact details and one of our debt collection specialists will contact you.
How does debt collection work in Mexico?
The process for collecting an outstanding invoice or other claim in Mexico can roughly be divided into an amicable (also known as extrajudicial) and judicial phase. Amicable debt recovery consists of all actions taken before the legal process. If that does not resolve the issue, often the only option left is to go to court. A debt collection agency can handle the entire process for you, from the extrajudicial phase to the legal proceedings.
- Upload your invoice online
- We'll start your case
- We'll start with the debt collection process
- Together we decide the best strategy for collecting your debts
- Monitor the status of your case 24/7
- Any questions? Your personal accountmanager will answer them all!
- Your invoice is payed
Extrajudicial debt collection
In many cases, an extrajudicial debt collection process is sufficient to move your debtor to pay the outstanding debt. Many debtors realize that ignoring the bill is futile when they receive a letter from a professional debt collection agency and choose to pay on their own initiative.
Sometimes, the overdue payment is also caused by a misunderstanding, or the debtor simply forgot to pay the invoice. Therefore, it is generally not wise to bring your debtor to court immediately. By starting with an extrajudicial dent collection procedure, you can maintain the relationship with your customer and save yourself a trip to court.
During the amicable debt collection phase, there are at least 16 contact moments with your debtor over a period of three weeks. We send reminders, but we also make contact by phone and text messages. Your debtor thus has every chance to pay the outstanding bill.
Throughout the process, we gradually increase the pressure. If your debtor still does not pay, we give them one last chance: if payment is not made within the set term, we will go to court.
Judicial debt collection in Mexico
You are entitled to your money, and if your debtor does not voluntarily pay the owed amount, we will initiate a legal debt collection procedure (in consultation with you as the creditor).
This process is somewhat more complicated in Mexico than in some other countries. Like the United States, Mexico has a federal government, under which there are 31 separate states and the capital Mexico City, each with its own laws and regulations. Whether your claim falls under federal law or the law of the state of your debtor depends on the type of claim.
As a rule of thumb, civil cases (between individuals or an individual and a company) are handled under the legislation of your debtor’s state. Business disputes (between companies), on the other hand, fall under the federal Commercial Code (Código de Comercio). Although business claims fall under federal law, they are often handled by the civil judge of the district court. Only complex cases of significant importance are referred to the federal court.
The legal procedure
To initiate a legal procedure, we must file a complaint with the court (juzgado) in your debtor’s district. In some states, this can be done online. When filing the complaint, we must specify your claim and provide evidence immediately.
The court will then summon your debtor. Your debtor must then respond to the summons within 9 days (for business claims) or 15 days (for civil claims). If your debtor fails to do so, the judge will issue a default judgment, which is almost always in favor of you as the creditor.
If your debtor does submit a defense, the court sets a date for a preliminary hearing. During this hearing, both parties have the opportunity to settle. If that fails, a date for a substantive hearing of the case is determined.
During the substantive hearing, both parties must present their evidence and may explain their views. The judge makes a ruling immediately after the hearing.
Unlike in most countries, no court fees are charged in Mexico. However, there are costs associated with legal assistance during the lawsuit.
Who pays the debt collection costs?
By Mexican debt collection laws, the legal fees are (for a large part) paid by the losing party. There are no fixed amounts established, but Mexican jurisprudence (previous court rulings) shows that the losing party typically has to pay about 6 to 10 percent of the total claim to cover the legal costs of the winning party.
Arbitration
More and more business disputes are nowadays being resolved through arbitration. This is a form of private justice. Instead of taking the case to court, it is brought before an arbitrator or arbitration panel. Often, the arbitrators are specialists in the relevant field.
To resort to arbitration, it must be agreed upon by the parties. This often happens at the time of the agreement, for example by including it in the contract or the general terms and conditions, but even if the conflict has already arisen, parties can agree to settle the dispute through arbitration.
The advantage of arbitration is that you do not have to wait for the court to have time for your case. Also, there is often no possibility of appeal (depending on the agreements made), which means the conflict is resolved much quicker. In addition, it can be agreed upon to handle the case behind closed doors.
When arbitration is chosen as a means to resolve a business conflict, it is not possible to go to court afterwards.
An arbitral award can be enforced in Mexico in the same way as a judicial verdict.
Enforcement procedures
Once the judge’s ruling becomes final (your debtor does not appeal or has no further appeal options), it becomes enforceable. This means you can ask the court to force payment if your debtor does not voluntarily pay.
In Mexico, for instance, the judge can decree that a manager takes control over the finances and/or operations of your debtor. This manager can then pay you.
The court can also order the seizure of your debtor’s possessions. Seized goods are publicly sold. You are paid out from the proceeds.
Interim measures
In Mexico it is possible to take interim measures when starting a lawsuit. We can for example ask the judge to freeze the assets of your debtor, to prevent them from hiding or dissipating those assets.
Typically, a bond must be paid (by the creditor) to cover any potential damage caused by the interim remedies, in case the claim is ultimately deemed unfounded.
Moreover, we must present a valid reason for the preliminary attachment. Grounds for the freezing of assets under Mexican law include:
- A justified concern that the person against whom the claim is filed will leave Mexico or go into hiding
- A justified concern that your debtor will hide or dispose of assets.
Generally, the freezing of assets is an excellent way to put pressure on your debtor. They can’t touch their assets until the lawsuit is resolved. Many debtors, facing interim measures, choose not to wait for the court’s decision but to pay off the debt instead, hoping the attachment will be lifted.
Applying for your debtor's bankruptcy
If the debtor refuses to pay (even after a court ruling), filing for bankruptcy is a powerful way to put pressure on your debtor that most of the times proves to be sufficient to get your invoice paid.
If your debtor does not pay an invoice, according to the Mexican bankruptcy law, you have the right to file for their bankruptcy. Of course, no one wants to go bankrupt. Therefore, many defaulters choose to pay the invoice after all.
It is possible to request the bankruptcy of your debtor if they have two or more outstanding debts that have been due for at least 30 days. Also, if the debts represent a value that is 80 percent or more than the value of their assets, they can be declared bankrupt.
As soon as we have filed a bankruptcy request, the court will summon your debtor. Then, your debtor has 9 days to object to the bankruptcy. In doing so, your debtor must immediately provide evidence. If they fail to do so, the judge will initiate a bankruptcy process.
If your debtor is ultimately declared bankrupt, the judge will appoint a trustee. This trustee is tasked with selling the debtor’s assets and paying out the creditors.
Fortunately, most debtors do not let it come to this and pay the outstanding debt after all. If that is the case, we can stop the bankruptcy proceedings.
Personal advice?
Fill in your contact details and we will contact you immediately!
Legal areas of debt collection Mexico
Within every legal jurisdiction, we can collect your claim for you. Whether it concerns an unpaid invoice, salary you are owed by a Mexican employer, or a damage claim in Mexico, our collection specialists know what is required to collect your claim for you.
We handle debt collections within, among others, the following legal jurisdictions:
- Construction law
- Rental and leasing
- Purchase and sale
- Labor law
- Agency agreement
- Transport
- Damages and unlawful acts
We work not only clients directly but also for intermediaries, such as law firms, accounting corporations and public accountants.
Other debt collection services in Mexico
- Reliable advice on contracts and terms
- Credit information about companies in Mexico
- Disputes including issues like Retention of Title and right of recourse
- Mediating in reaching private settlements and agreements
Submit your debt collection case
You can submit your claim directly via our debt collection registration form. Prefer to discuss your claim with a debt collector first? Leave your details or call us at +3170 – 762 0330.
Free advice on debt collection in Mexico?
Submit your personal information and plan your free consult.
FAQ: Frequently Asked Questions about debt collection in Mexico
FAQ: What do we need for a debt collection in Mexico?
To substantiate your claim in court, we need to show evidence. A contract signed by both parties, for example, is an excellent way to demonstrate that your debtor is not adhering to the agreements.
Most case files are not immediately complete, and it often occurs that agreements are made via email or verbally. Even then, it’s possible to prove that you are in the right. Together with our collection specialist, you can discuss what documents you have to support your claim.
If in your possession, we would like to receive (copies of) the following documents:
- A copy of the agreements made such as a purchase agreement, but also email correspondence with your debtor, a fax confirmation, or a summary of what has been agreed upon
- Sent invoices
- Sent reminders
- Your general terms and conditions applicable to the agreement
- Proof of delivery
FAQ: Is a retention of title clause legally valid in Mexico?
Article 2312 of the Federal Civil Code of Mexico states that the selling and buying parties can agree on a retention of title. A retention of title is a clause in the purchase conditions that ensures the ownership of the delivered goods only transfers to the buying party once additional conditions (usually full payment) have been met. If no retention of title is agreed upon, then ownership transfers to the buyer upon delivery, even if they have not paid.
FAQ: What is the statute of limitations for claims in Mexico?
In Mexico, claims have a statute of limitations. If you do not initiate a lawsuit within this period, the court will dismiss the claim. Therefore, it’s important to take legal action in time. The statute of limitations varies by type of claim and also depends on the kind of case: whether it involves a dispute between business entities or individuals. A business dispute must, in principle, be brought to court within 10 years. Our specialist debt collectors can investigate the applicable statute of limitations for your specific claim.
FAQ: Why not engage a collection agency in Mexico?
If you hire a debt collection agency in Mexico, you will have to deal with a significant time difference and you often have to communicate in Spanish. Moreover, most debt collection agencies in Mexico can usually only assist you with the extrajudicial process, and you will need to find a debt collection lawyer or law firm yourself to initiate legal proceedings.
At Collection Company, you have one clear point of contact. This debt English-speaking collection specialist coordinates the procedure. We can handle the entire debt collection process in Mexico for you, from the amicable phase to the judicial procedure.
Why 40.000 customers tried our services
- The #1 collection company in the Netherlands and abroad
- Regional & local specialists
- Years of experience with international invoices
- Your own personal contact
- Extensive advice on the legal process
- Monitor the status of your case 24/7
Meet our specialized legal team
Joost Konings LLMLaw expert- May Leung LLMLaw expert
- Wesley Boeters LLMInterim lawyer
