Going through the process of chasing debt payments from individuals or companies, unfortunately, is a much more common situation than most people may think, especially in Mexico debt collection cases are more common today than ever before thanks to the economic instability most people are in.
If at some point you find yourself in a debt collection case in Mexico, the first thing to do is to be clear on how to proceed and seek advice from specialists in the field who are generally lawyers in Mexico who work with these cases. There are several routes to resolve this type of situation, so having the right counsel is important.
Because we don’t want you to be afraid and because we don’t want any more abuses by companies and individuals in debt, we have developed this article in which we explain in the simplest way possible the entire debt collection process in Mexico so that you have the necessary information to successfully overcome these processes.
The debt collection in Mexico starts with an official letter sent to the borrowers with the help of the public notary and our team of lawyers in Mexico who can handle the complete process and its legal aspects.
The costs for debt collection are most of the time discussed and imposed when the debt is settled. The commercial cases in Mexico rely on the evidence through related documents, if they are settled in the court of law.
Sometimes it is necessary to go to a court of law to resolve debt collection cases in Mexico, but there are always ways to reach simpler agreements. In any case, it is crucial for your success that you have a team of Mexican lawyers who know the law inside out to help you through the entire process.
Besides the legal support offered in debt collection cases, our team can assist foreign investors in opening their businesses in Mexico.
What is debt collection in Mexico?
If a person has a commitment or obligation to pay for an object or service, he/she has a debt due and if he/she does not pay on time, he/she has a delinquent debt. If someone comes to have this type of debt with you or your company, to recover your money you have some possibilities, among which are to initiate a debt collecting process.
Collecting money or assets from persons or companies that failed to make the payments in time, in accordance with an established contract in this matter, is called debt collection in Mexico. The debt collection process is normally pursued by a team of debt collection specialists who usually are lawyers in Mexico.
The debt collection process may begin before the payment term is due, which we normally refer to as debt in arrears, and may continue in a more vigorous manner after the payment term expires, which is known in Mexico as debt in default.
Throughout the process, you have at your disposal different methods to put pressure on the debtor, even before he/she is in a state of default.
Debt collection cases in Mexico have several other stages in which the most convenient thing to do is to count on the help of experts in the field who are generally attorneys in Mexico with experience in this type of situation. With the right advice, facing the whole process of debt collection through the courts can be easier. Do you need other types of legal services in Mexico, such as legal support in order to immigrate to Mexico from US? Our team of attorneys can help you in this matter as well. Compared to Mexico, other North American nations have far greater costs of living. The quality of life for many elderly people at home is deteriorating as they struggle to make ends meet on their pensions. All of that alters in Mexico. In general, a US pension will provide more affordable housing and utilities, frequent socialization, high-quality healthcare, and some financial freedom. Family is never too far away due to the inexpensive flights to the US and Canada. Get in touch with our lawyers if you are interested in immigration to Mexico.
Debt collection through the amicable procedure in Mexico
Although it is quite common for debt collection cases in Mexico to end up being heard in court, there are other ways to start before considering bringing the case before a judge. Most law offices in Mexico will recommend starting this type of process with approaches to reach an amicable agreement between the parties.
In that sense, the first thing you should do when it comes to recovering your money from a debtor is to verify that you can reach an agreement before going through stricter ways. This can save you a lot of time, and if you have the help of lawyers in Mexico City you will have no problem doing so.
Recovering the money from businesses or individuals in Mexico can start through an amicable procedure. This involves a series of steps like:
- notice for payment is sent to the debtor in Mexico;
- the debt collection agents in Mexico can then contact the debtors;
- the negotiation for recovering the money is made through constant communication between the two parties involved;
- a specific date for recovering the money can be settled in agreement by the debtor and company or individual.
Resolving these types of disputes amicably will always be much more efficient and less expensive than taking the case to a court of law in Mexico. And although it may seem difficult to achieve, the truth is that most debt collection cases are resolved by this method.
The most important thing to keep in mind is that the agreement you are reaching with the debtor is truly favorable for you.
Recovering the debts with the help of amicable procedures is preferred instead of lawsuits in Mexico. In any case, companies need to consider the legal support and guidance which can be offered by our team of attorneys in Mexico. While it may appear simpler to acquire and maintain permanent residency in Mexico rather than become a citizen, there are several key considerations to consider while making that decision. To begin, becoming a Mexican citizen requires first becoming a permanent resident. As a result, many people do not feel forced to obtain citizenship to avoid lengthy and complex procedures. However, if you have decided to get citizenship in Mexico, please visit our lawyers.
Debt collection in the court of law in Mexico
Although it is true that overcoming a debt collection process by amicable means is generally recommended, the reality is that not everything can always be resolved that way. There are cases in which the only way to recover the outstanding money is to take the case to a judge. It is on these occasions where it is crucial to have an excellent team of lawyers in Mexico.
The legal alternative for debt collection in Mexico is the process that respects the common law as settled in the USA. Going to the court of law for recovering the money means that all options have been used without any positive results.
The local courts in Mexico deal with the cases of debt collection. The process starts with the presentation of evidence like payment orders, contracts, credit statements, plus documents showing that communication between the two parties took place before sending the case to the court.
Having Mexican lawyers who have had prior experience and success in debt collection cases is the most important thing in these cases. They can help you build a strong case and present evidence properly so that there is no doubt in court that the claim you are making is legitimate.
Who pays the court costs in Mexico?
One thing we all think about when it comes to taking legal action for any reason is how much it will cost. Debt collection cases are no exception to that rule. And while attorney’s fees can vary for a myriad of reasons, there are some generalities that apply when it comes to the costs of these types of proceedings.
According to the Federal Law in Mexico, individuals or companies that lost the process need to pay for the expenses involved. Even if the debt collection process is not as difficult as it may seem, it is strongly recommended to ask for complete legal support offered by a team of lawyers who have knowledge about the legislation and its applicability in the country.
Having the right team of Mexican lawyers can make the difference between losing or winning a debt collection case, so you should make sure you have qualified professionals by your side to accompany you throughout the process.
Mexico business outlook
- Mexico is the 15th largest economy in the world in terms of GDP.
- The country’s GDP per capita is approximately $8705 (2020).
- It ranks 76th out of 196 in terms of quality of life.
- It is among the top 55 countries in the Doing Business ranking.
Feel free to contact our law firm in Mexico for complete legal support in cases of debt collection. We will contact you immediately to help you with your case and recover your money.
There are several routes to get Mexican residence permits. For instance, the one is if you have a kid born in Mexico, you can also get permanent resident status. In this instance, you will get permanent residency through an INM office in Mexico. You can also apply with a tourist visa or at any point during your temporary stay.