Top-Rated Debt Collection Agency in Chile
Fast and reliable debt collection in Chile - no upfront costs, only pay for success. Request a FREE Consultation or upload your claim today.
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Reclaiming your debt in Chile has never been easier.
Debitura specializes in debt recovery in Chile, offering a comprehensive range of services such as accounts receivables management, debt collection notices, pre-legal and legal debt collection, and enforcement court proceedings. With our team of experienced professionals well-versed in Chile debt collection laws and regulations, we are equipped to provide efficient and effective solutions for recovering outstanding debts, helping businesses to navigate and overcome such challenges.
We provide unwavering assistance throughout the entire process.
Tailored debt recovery approach.
We have a network of over 500 professionals who specialize in handling international debt collection.
With the lowest cost, our success rate stands at 87%.
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The ultimate guide about debt collection in Chile
If you have money that someone else owes you from Chile, you are in the right place. We have helped many other businesses get their money back from people who owe them. It can be very difficult to get money back from someone who lives in a different country, but we can help you.
At Debitura, we always put people first. We try to get your money back while still being fair to the person who owes you money. Our efforts are firm but fair- which means that we will always try to protect your reputation. If you want to learn more about Chilean debt collection process, keep reading this guide. If you would rather work with a local law firm that specializes in debt recovery in Chile, we can help you with that too.
Debtura helps you collect money that someone owes you. You can start by uploading your claim today. We will look at your case and provide you with 3 free quotes from local debt collection lawyers in Chile within 24 hours. We use a combination of people skills and the latest technology to get results and provide better customer service. This complete method gets the job done while still allowing us to keep good relationships with our customers. We also have a network of debt collectors, attorneys, suppliers and vendors that we work with. We value all of these relationships, no matter how big or small they are.
Upload claim
Take the first step towards debt collection in Chile today. Sign up for a free profile and upload your case in just 2 minutes. It's quick, easy, and completely free.
Pre-legal
During the initial 3 months, we will attempt to collect your debt through our effective pre-legal recovery procedure. It's a no-cure-no-pay arrangement, which means you only pay if we successfully collect the debt.
Legal
If your claim remains unpaid in the pre-legal phase, we procure three quotes from our local debt collection attorneys.
24/7 updates
You get access to our online portal where you can track your case in real-time
Introduction to collecting debt in Chile
If you're having trouble getting paid by your Chilean customers, we can help. The person who owes the debt is called the "debtor," and the person who issued the debt or invoice is called the "creditor." If the creditor tries to collect the debt himself, this is called "first-party collection." But if he outsources the collection process to someone else, it's called "third-party collections."
- Even though most companies usually pay their bills within 60 days, the standard payment terms are much longer (60 to 90 days).
- The court system is trustworthy, but it can be slow. This means that it is better to try to get the money you are owed without going through the court system, which can take a long time.
- There are ways to try to save companies that have too much debt, but these ways are not used very often. The default plan when a company can't pay its debts is to close the company. So, if you're owed money by a company that goes bankrupt, it's very unlikely that you'll get any of that money back.
Days Sales Outstanding (DSO)
In Chile, the law says that people have to pay for what they buy within 30 days. If they don't pay on time, they have to pay extra money for being late. The law says that the parties may agree to extend the 30-day term, but also establishes safeguards to prevent such agreements from being abusive. In addition, in case of delays in obtaining payments, all the incidents in Chile are recorded by a database managed by a private company. Most individuals and corporations try to have a clean record since this database is consulted for most business transactions regardless of amount. The DSO for listed companies has remained stable over the past few years.
The main types of corporate structures are sole proprietorships, partnerships, limited liability companies, and corporations
Liability for business debts is determined by legal structures. This means that the law decides who is responsible for paying back the debt.
- Limited Liability Companies are the most common business structures. This is because they do not require a minimum amount of money to start and shareholders’ liability is limited to their contribution.
- Corporations (SA) have different rules than other businesses. They can have more shareholders, but the rules about how the business is run are stricter. For example, a board of directors must be nominated.
- Stock companies (SpA) can be used when more money is needed, and they have more flexible rules.
The debt collection process in Chile
The debt collection process in Chile usually happens in more than one step.
The image below explains the process we use to collect debt in Chile:
1 Upload your claim:
If you want to get your money back from someone who owes you, you can start by finding a company that collects debts. You can upload your claim to their website. If you use Debitura, we will give you 3 quotes from local partners in the South America country where the person lives. This is free - no strings attached.
2 Amicable collection:
When we try to collect a debt, we first send reminders to the person who owes the money. We use email, SMS, letter, and other ways to communicate. The goal is to get the debtor to pay or acknowledge the debt and start a payment plan. With Debitura, you only have to pay a small success fee if we recover your debt. Therefore, trying to collect your debt with Debitura is 100% risk-free!
3 Evaluation:
If the person you lent money to has not paid you back after you talked to them nicely, it is time to decide what to do next. We will look at how much money you are owed, how likely it is that they will pay you back, and other factors to help you decide what to do. There are three typical next steps:
A: Surveillance:
If your claim is below 2,000-5,000 euros, it is not worth it to take any more legal actions. In this case, we recommend "debt surveillance." This means that we will keep contacting the person you owe money to and try to reach an agreement.
B: Legal collections:
It's a good idea to use the legal system if you have a big problem that you need help with. The way you do it will change depending on what the problem is and how big it is. Usually, it takes about a year and a half to finish everything.
C: Debt enforcement:
If the person you are owed money from has agreed that you are owed money, or if there is a court order, you can go to the bailiff's court to get your money.
At Debitura, we can help you with all three steps in Chile.
Amicable collection in Chile
Debitura offers a free and efficient process for Amicable collections. Simply submit your claim, and we will get started within 24 hours.
We will try to contact the person you owe money to using different ways, like email, text messages, letters, phone calls, and social media.
The goal is to:
A) get the debtor to pay the full amount or
B) get the debtor to agree that they owe money and start a plan to pay it back
If the person you are trying to get money from has disputed your claim, you cannot start with an amicable resolution. This means you cannot try to work it out between yourselves. You must start directly with legal collections.
Late payment interest
The law says when people have to pay money they owe. The Central Bank decides what the interest rates will be. This is the amount of extra money you have to pay if you do not pay on time. The law also says how much interest people can charge. But it is hard to figure out how much this will be because it depends on things like what kind of money is owed, how late the payment is, and other factors.
Get started with
amicable debt collection
Upload your claim and get started with our 100% no-cure-no-pay collection solution.
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Legal collection in Chile
If the person you owe money to does not pay you back, or if they dispute your claim, we will give you 3 free quotes from local debt collection attorneys. In the legal phase, our local attorney will reach out to your debtor and try to negotiate a payment. Our partners can also go to court and get a payment order from the legal system in Chile. This payment order can then be used to enforce your claim in enforcement court.
Ordinary proceedings
If you can't agree on a payment plan or if the person you owe money to disagrees with your claim, you can start legal proceedings. This means that you have to go to court. A court clerk will tell the person you owe money to (the debtor) that you are starting legal proceedings. The debtor has fifteen days to answer your complaint but, if they don't show up to court, you will have to prove your allegations anyway. This is why it is important to have a lawyer represent you in court.
Chilean courts will often make a decision about who is right, what someone must do, or if someone's property can be taken away. As a general rule, damages in Chile are to be considered broadly but punitive damages cannot be awarded.
Chile's court system is divided into first instance and appellate courts. These courts consider the debtor's location and what type of case it is when deciding which court will hear the case. The Supreme Court is the highest level court in Chile and it deals with cases from all over the country. There are also Special Courts that handle specific types of cases, like antitrust cases. Most of the rules for business litigation are written down in a Civil Procedures Code and a Court Statute Code.
It is important to know that Chilean courts are not connected to the executive power. This means that they are independent and can make their own decisions. It is reasonable to start legal action before going to court, but you need to be patient.
Different lawyers charge different prices for their work. It is a good idea to ask more than one lawyer how much they would charge for your case. This way you can compare prices and choose the lawyer you think is best for you. Debitura is a website that can help you find and compare quotes from different lawyers.
Get started with
legal debt collection
Upload your claim and get 3 FREE quotes from our local collection partners.
Debt enforcement in Chile
If you have a written acknowledgement of your claim from the debtor or a court order, you can ask the bailiff's court in Chile to help you get your money from the debtor.
A judgment is final when all appeals are done. If the debtor does not pay, assets may be sold. Collection from a third party is not possible. Enforcement proceedings must be started within one to three years.
The process of getting money back and how much it will cost depends on your situation. You can upload your information onto the Debitura website, and within 24 hours, you will receive 3 specific quotes based on your claim.
Get started with
debt enforcement
Upload your claim and get 3 FREE quotes from our local collection partners.
Insolvency proceedings in Chile
If the person you owe money to cannot pay you back, you can start an insolvency procedure. The goal of this is to sell their assets and give the money to the people they owe in order of importance.
- An out-of-court restructuring procedure must be documented in an agreement signed before a public notary, normally backed by a set of checks also signed in front of the notary.
- The law provides a formal procedure to achieve restructuring of the debt so as to allow the company’s survival. The debtor firstly has a legal obligation to declare its insolvency to the court when it becomes unable to pay its debts when they fall due, but a debt restructuration mechanism may then be put in place to allow the parties to reach an agreement (reorganization agreement) under the supervision of a court-appointed administrator (Vendor).
- In practice, however, creditors very rarely agree to wait for their debt to be paid and debt renegotiation proceedings are hardly ever used. Since debt restructuration mechanisms are not relied upon, liquidation is the default insolvency proceeding in practice.
- Liquidation is organized through a single procedure initiated upon demand of the debtor or creditor. In particular, creditors can file for bankruptcy (compulsory liquidation) when a debtor defaults or disappears without appointing an administrator for its business.
Our analysis concludes that the risk of running a business in Chile is low. Based on this low score, You can feel reasonably confident that you will be able to get paid when trading with customers in Chile. Nonetheless, we always recommend doing a specific credit analysis on an individual customer basis before offering any credit. The low risk score is based on the following factors:
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The economic risk in Chile
Economic risk in Chile is medium (3 out of 6). An economic risk of 3 out of 6 is relatively low in South America.
GDP and economic growth are critical drivers for economic risk.
The GDP of Chile is 317,06 bn. USD (2021), growing by 11,67% per year.
In terms of the size of its economy, Chile ranks #42 out of 183 countries and has a large economy.
In terms of growth rate, it is ranked #13 out of 183 countries and is therefore considered a fast-growing economy.
GDP per capita is 16503 USD, ranking Chile number #49 out of 183 countries. This means the purchasing power of citizens in Chile is high compared to the rest of the world.
You can see a more throughout picture of GDP and economic growth in Chile in the table below:
Another critical driver for the economic risk score is the inflation rate and the interest rates. You can see a more throughout overview of monetary data points in Chile in the table below:
The inflation in Chile was 4,5% in 2021 which is considered a medium inflation rate.
The business environment risk in Chile
Our analysis shows that the business environment risk in Chile is very low (1 out of 6), which is a low risk score in South America.
Economic freedom and rights has a big influence on the business environment risk in a country. Take a look at the important facts for Chile in the table below:
In the above table, you can see, the property rights index is 70 in Chile, which is considered quite good in South America.
The business freedom index is based on 10 indicators, using data from the World Bank’s Doing Business study. The Index is 75 in Chile, a pretty good score for a country in South America.
Chile's overall economic freedom index is 75 out of 100 and is based on factors such as the rule of law, regulatory efficiency, and market openness.
The political risk in Chile
The political risk in Chile is low, with a score of 2/6. This is a low political risk score in South America.
The governance and political stability indicators are critical drivers for political risk. An overview of Chile can be seen in the table below:
The rule of law index analyses to which extent agents have confidence in and abide by the rules of society, in particular the quality of contract enforcement, property rights, the quality of the courts, and the police's ability to enforce court orders.
When doing business in a country, the rule of law index is critical as it describes your ability to enforce commercial contracts.
In Chile, the rule of law index is at 0,91 points, with the score going from -2.5 (weak) to 2.5 (strong). Chile has, therefore, a very high rule of law index, which means you have a very good chance of enforcing your contracts. If your individual customers have good creditworthiness, you should therefore feel relatively safe when providing credit.
Other drivers for the low political risks are the average control of corruption, the weak political stability index, and the normal shadow economy that is 13,16% of Chile's GDP.
The commercial risk in Chile
In Chile, the commercial risk score is 2/4, which in our model is a low score. This low commercial risk score is pretty average compared to the average in South America.
The commercial risk is influenced by a country's international trade relationships. You can see some of the key facts for Chile in the table below:
Chile has a foreign exchange reserve of 51.25 bn. USD.
Chile has a negative trade balance of -0,65% of GDP. This means that Chile imports more goods and services than the country exports.
The annual growth of exports of goods and services has been growing 21,47% annually - now 31,89% of GDP. Import of goods and services represents 32,54% of the GDP in Chile.
The financing risk in Chile
We have calculated the financing risk to be 2/4, which equals a low risk. A low financing risk score is pretty average for countries in South America.
The country's banking system, efficiency, and stability influence the financing risk. Additional facts and info can be found for Chile in the table below:
In Chile, the credit information sharing index is 7 on a scale from 0 (low) to 8 (high). This means the accessibility and quality of credit information available in Chile is medium-high.
This makes it easy for you to understand the credit risk of your counterpart in Chile. You would be able to find a good local credit rating agency that can help you analyse the creditworthiness of your specific customers.
Your rights as a creditor are 4 out of 12 and, therefore, very weak.
Debt Collection in Chile: Frequently Asked Questions
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Debt collection in Chile usually involves multiple steps, and can be done through first-party or third-party collections. It is best to try to collect the debt without involving the court system, as it can be slow. The liability for business debts is determined by legal structures, and the process for collecting debt typically involves uploading your claim, attempting amicable collection, and then evaluating the need for surveillance, legal collections, or debt enforcement. Debitura can assist with all steps of the process in Chile.
The debt collection process in Chile consists of three steps: pre-legal collection, legal debt collection and debt enforcement. First, reminders are sent to the debtor to try to collect the debt through amicable means. If this fails, you can consider legal action or debt surveillance depending on the amount owed. Finally, if you have a court order, you can seek debt enforcement through the bailiff's court. Debitura can assist with all three steps in Chile to help you recover your debt.
If a debt is disputed, a civil lawsuit is needed for debt collection in Chile. Legal options include debt enforcement and insolvency proceedings. It's important to know that legal actions require a local lawyer. Different lawyers charge different prices for their work, so it's worth comparing quotes. In insolvency proceedings, assets are sold to pay off debts in order of importance. The debtor may declare insolvency, and a reorganization agreement under the supervision of a court-appointed administrator may be reached, but liquidation is the default insolvency proceeding in practice.
Debt collection costs in Chile vary depending on the specific case and desired actions. Debitura offers a no-cure-no-pay model for pre-legal collection with a success fee between 10-20%. For legal actions, prices vary. Debitura can provide you with 3 quotes from the best debt collection lawyers in Chile.
The duration of debt collection in Chile depends on the complexity of the case and the debtor. If the case is resolved during the pre-legal phase, it usually takes 3-6 months. However, if legal action is necessary, it may take 12-18 months. So the time span is case-specific.
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