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Debt Collection in Mexico – Your Complete 2025 Guide
Understand exactly how debt collection works in Mexico: learn the legal procedures, timelines, creditor rights, enforcement mechanisms, and critical cross-border considerations. Navigating debt recovery in Mexico can be complex due to a web of federal and state laws, procedural formalities, and significant court delays. Whether you're a foreign creditor or managing collections domestically, clarity on the process is essential for successful debt recovery and compliance.
Looking for a debt collection agency in Mexico? → Explore our services here.
Key Facts:
- Legal Framework: Primarily governed by the Código de Comercio (Commercial Code) and Código Civil Federal (Federal Civil Code), complemented by individual state procedural codes and the new National Code of Civil and Family Procedure (effective nationally by April 2027).
- Collection Processes: Typically begins with amicable out-of-court negotiations, progressing to judicial action if unsuccessful. Common judicial routes include the expedited "juicio ejecutivo mercantil" and ordinary trials.
- Court Timelines: Judicial debt recovery can take between 1–2 years for uncontested "executive" claims and 2–4 years or more for contested ordinary lawsuits, with additional time possible for appeals and amparo constitutional challenges.
- Enforcement Tools: Common methods include embargo precautorio (pre-judgment asset attachment), seizure of bank accounts, real estate liens, and judicial auctions to liquidate debtor assets.
- Compliance Considerations: Strict regulations by PROFECO (consumer protection authority) govern debt collection practices to prevent harassment and abuse, requiring creditors and agencies to adhere to precise conduct guidelines.
This guide is not legal advice and laws/rules may change; consult a qualified professional for personalized assistance. Use at your own risk.
Debt Collection Process in Mexico
A three-step process—amicable attempts, court proceedings, and enforcement measures—governs debt recovery in Mexico. This structured approach ensures creditors have clear guidelines to follow, enhancing their ability to successfully recover debts within the regulatory framework established by the Código de Comercio and Código Civil Federal.
Amicable Phase (Gestión Amistosa)
Initiate the recovery process with direct communication—letters, calls, or meetings—to negotiate payment. PROFECO regulations mandate respectful contact between 7:00 a.m. and 10:00 p.m. weekdays, and prohibit threats or harassment. A formal "requerimiento de pago" (payment demand), especially notarized, can strengthen the creditor’s position if court action becomes necessary.
2. Court Proceedings (Juicio Ejecutivo Mercantil)
If amicable collection fails, creditors file a lawsuit, typically through the expedited "juicio ejecutivo mercantil," provided they hold valid debt instruments like notarized debt acknowledgments or promissory notes (pagarés). This process involves presenting original debt documents, with courts often ordering an embargo precautorio to secure debtor assets. The executive trial can yield judgments within 1–2 years, while ordinary proceedings may extend to 2–4 years, plus additional time for potential appeals and amparo.
3. Enforcement Phase (Embargo de Bienes)
Upon obtaining a favorable judgment, enforcement measures are initiated. These typically include embargo precautorio (asset seizure), garnishment of bank accounts, registration of real estate liens, and public judicial auctions (remate) to liquidate debtor assets. Enforcement costs, such as appraisal and auction expenses, are initially covered by the creditor but are recoverable from auction proceeds, making efficient asset identification crucial.
Amicable & Pre-Litigation Debt Recovery in Mexico
Start with reminders and negotiation: a structured approach can resolve most debts before legal action becomes necessary. This initial phase (Gestión Amistosa) typically spans 90 days, aiming to secure voluntary payment while adhering strictly to PROFECO guidelines.
Timeline of amicable debt recovery steps in Mexico
- Send Initial Friendly Reminder (Day 0-30)
Initiate with a polite call or letter clearly stating the debt, its origin, and amount due. Reference the original contract, invoice, or promissory note (pagaré) to confirm validity. - Issue Formal Demand Letter (Carta de Cobranza, Day 31-60)
Send a bilingual (Spanish-English) demand letter via certified mail or notarized delivery (requerimiento de pago notarial). Clearly outline payment terms, deadlines, potential consequences, and confirm compliance with PROFECO guidelines. - Deliver Final Notice with Legal Trigger (Day 61-90)
If no response, issue a final notice warning of imminent judicial action. State clearly the intent to proceed with a "juicio ejecutivo mercantil" or ordinary lawsuit if the debt remains unresolved after day 90.
Sample Bilingual Demand Letter (English / Spanish):
Spanish Version:
[Fecha]
[Nombre del Deudor]
[Dirección del Deudor]
Ciudad, Estado, Código Postal
Estimado/a [Nombre del Deudor],
Esta carta es un requerimiento formal para el pago inmediato de la deuda pendiente de [cantidad en pesos mexicanos] relacionada con [descripción del origen de la deuda, e.g., factura, contrato o pagaré]. Se solicita realizar el pago completo antes del [fecha límite de pago]. De no recibir respuesta o pago en la fecha indicada, procederemos con acciones legales conforme al Código de Comercio vigente.
Quedamos a su disposición para discutir opciones de pago.
Atentamente,
[Su Nombre o Nombre de la Compañía]
English Version:
[Date]
[Debtor's Name]
[Debtor's Address]
City, State, Postal Code
Dear [Debtor’s Name],
This letter serves as a formal demand for immediate payment of the outstanding debt of [amount in Mexican pesos], associated with [description of debt origin, e.g., invoice, contract, or promissory note]. Payment in full is required by [payment due date]. If payment or a response is not received by the indicated date, we will proceed with legal actions as per the current Commercial Code.
We are available to discuss payment options.
Sincerely,
[Your Name or Company Name]
Settlement & Limitation Reset Checklist:
- Licensed attorneys and authorized collection agencies may assist creditors within this process, strictly as legal facilitators adhering to consumer protection laws. Their involvement should focus on negotiation and legal advisement rather than sales-oriented activities.
- Confirm statute clock resets with written debt acknowledgment.
- Document all communication meticulously, including call records and written correspondence.
- Offer structured payment solutions or discounted lump-sum settlements clearly in writing.
- Verify debtor financial status to inform negotiation strategies.
- Ensure any negotiated settlement is signed and preferably notarized for enforceability.
Court Proceedings & Legal Actions in Mexico (Juicio Ejecutivo Mercantil)
Legal options in Mexico include simplified payment orders (juicio ejecutivo mercantil) and full litigation (juicio ordinario mercantil)—each with distinct timelines, procedural complexities, and associated costs.
Mexico’s debt collection framework provides creditors two primary judicial avenues for recovering outstanding debts: the fast-track mercantile executive trial, ideal for straightforward claims supported by robust documentation, and the ordinary mercantile trial, suitable for more complex or contested debts. Selecting the appropriate method is crucial for managing timelines, expenses, and the likelihood of successful debt recovery.
Court Types & Thresholds in Mexico
Debt claims in Mexico are handled primarily by civil and mercantile courts (juzgados civiles y mercantiles). The nature and amount of the debt generally dictate jurisdiction and the applicable procedural rules:
- Small-Claims Courts (Juzgados de Cuantía Menor): Typically manage debts below approximately MXN 682,646 (~USD 40,000). These cases follow streamlined oral procedures, with decisions typically rendered within one year.
- General Mercantile Courts: Handle claims above MXN 682,646 or involving complex documentation. These courts can process cases either through simplified oral mercantile trials or traditional written proceedings, depending on claim size and evidentiary requirements.
Payment Order vs. Lawsuit
Simplified Payment Order (Juicio Ejecutivo Mercantil)
The juicio ejecutivo mercantil is a streamlined procedure used when the creditor holds an executable debt instrument (título ejecutivo), such as a notarized promissory note (pagaré), bill of exchange (letra de cambio), or a duly acknowledged debt (reconocimiento de deuda notarial).
- Initiation: Creditor files the claim with original documents, typically obtaining a provisional asset seizure (embargo precautorio) simultaneously with summons issuance.
- Timeline: Typically resolved within 1-2 years if uncontested; can extend slightly if debtor raises limited formal defenses (e.g., forgery, lack of capacity, prior payment).
- Cost implications: Lower attorney fees due to simplified procedures; losing party usually responsible for all court costs and attorney fees per statutory tariffs.
Full Litigation (Juicio Ordinario Mercantil)
The juicio ordinario mercantil is a comprehensive legal process used for complex or contested debts not covered by an executable instrument. This route involves extensive evidentiary review, witness testimony, and potential expert analyses:
- Initiation: Requires comprehensive evidence supporting the debt’s existence and non-payment, potentially including contracts, delivery confirmations, and witness statements.
- Timeline: Often takes 2–4 years to reach a first-instance decision, potentially extending further with appeals (apelaciones) and constitutional amparo challenges.
- Cost implications: Higher attorney and expert witness fees; typically, each party initially covers their own costs unless court explicitly awards fees to the prevailing party.
Repayment Plans & Insolvency Protection
Debtors facing financial difficulties may request court-approved repayment plans or invoke insolvency protections under the Ley de Concursos Mercantiles:
- Repayment plans: Courts may authorize structured settlements (convenios judiciales) allowing debtors to repay in installments under judicial supervision.
- Insolvency (Concurso Mercantil): Debtors significantly insolvent or with multiple creditors may seek reorganization or liquidation. This halts all individual collection actions, requiring creditors to file claims within the insolvency proceedings, potentially affecting recovery rates.
Interest, Damages & Legal Fees
Mexican law allows creditors to recover principal, statutory or contractual interest, and specified legal fees:
- Interest: Courts enforce contractually agreed interest rates unless deemed usurious (usually above 37% annually triggers scrutiny). In absence of explicit interest terms, statutory commercial default interest of approximately 6% per annum applies.
- Damages: Typically limited to actual proven damages; Mexican courts rarely award punitive damages.
- Legal Fees (Costas): The losing party often must pay the prevailing party’s attorney fees as per official tariffs (Arancel de Honorarios), typically ranging from 8–15% of the claim.
Summary Table: Cost Bands & Court Timelines
Key References:
- Código de Comercio, Art. 1391 (Juicio Ejecutivo Mercantil)
- Ley General de Títulos y Operaciones de Crédito (promissory notes & negotiable instruments)
- Código Federal de Procedimientos Civiles, Art. 571 (Recognition of Foreign Judgments)
Embargo de Bienes: Enforcement of Judgments in Mexico
Once a court decision is secured, various enforcement options exist—wage garnishments, bank seizures, and bailiff actions—each with distinct timelines, processes, and costs.
Upon obtaining a favorable and final (res judicata) judgment from Mexican courts, creditors must actively enforce the decision through a structured execution phase known locally as etapa de ejecución. Enforcement typically involves a sequence of procedures including garnishment (embargo de salarios), asset seizure (embargo precautorio), and detailed financial disclosures, guided primarily by the Federal Code of Civil Procedure and Commerce Code.
Key Enforcement Measures
1. Wage Garnishment (Embargo de Salarios)
Creditors can request garnishment of a debtor’s wages. Mexican labor law allows garnishment only above a protected minimum wage threshold. Typically, creditors may garnish up to 30% of the debtor's monthly income exceeding the minimum wage. For instance, if the debtor earns MXN 10,000 monthly and the minimum wage threshold is MXN 4,000, garnishment is limited to 30% of the MXN 6,000 surplus, equating to MXN 1,800 monthly. This process can be slow, particularly with low-income debtors.
2. Asset Seizure (Embargo Precautorio)
If voluntary payment fails, creditors may seize debtor assets through judicial orders executed by court officials (actuarios). Common targets include:
- Bank Accounts: Courts can order banks to freeze debtor accounts upon receiving specific account details or via broader searches authorized by recent court precedents.
- Real Estate: Liens can be recorded against debtor properties, preventing sale or transfer until debts are settled. Property is subsequently auctioned to repay creditors.
- Personal Property: Vehicles, inventory, and valuable equipment at debtor premises can be seized. These assets are temporarily held by a court-appointed custodian (depositario) until auctioned.
3. Financial Disclosure Statements
Courts may require debtors to submit financial disclosure statements (manifestación de bienes) detailing their assets. False disclosures can lead to further legal penalties. Creditors typically use this to uncover hidden or undeclared assets, though debtors often stall or contest this stage.
4. 30-Year Enforcement Validity
Judgments relating to real property maintain validity for 30 years once registered at the Public Registry of Property, ensuring long-term enforceability even if immediate collection proves challenging. For personal and movable property, judgments remain enforceable typically up to 10 years from the final judgment date
Enforcement Timelines & Costs (Mexico)
Practical Considerations and Expectations
- Asset Discovery: Creditors bear the burden of asset identification. Proactively providing the court with debtor bank details, property records, or business assets speeds the enforcement process.
- Auctions: Judicial auctions typically involve two rounds; the first at approximately two-thirds of appraised value, the second often lower. If no bids emerge, creditors may claim assets at a judicially approved discounted valuation.
- Cost Recovery: Enforcement costs, including appraisal and custodial expenses, are initially borne by creditors but typically recoverable from proceeds post-auction. Legal fees may also be partially recoverable if court-approved (costas)
Regulatory Compliance and Limitations
All enforcement measures must comply with procedural and consumer protection regulations set by Mexican authorities like PROFECO, which mandates respectful conduct without harassment. Non-compliance risks fines or reversals of enforcement actions. Debtors may file appeals or amparo (constitutional challenges), potentially prolonging enforcement timelines.
Insolvency & Its Impact on Debt Recovery in Mexico
Debtor insolvency changes the rules—learn how collective proceedings, creditor rankings, and discharge timelines work.
When a debtor in Mexico faces insolvency, creditors must navigate the structured framework established by the Ley de Concursos Mercantiles (LCM). Known as concurso mercantil, this process significantly affects debt recovery in Mexico by suspending individual enforcement actions and prioritizing creditor claims according to strict legal guidelines. Understanding your rights and responsibilities during insolvency proceedings is crucial for effective debt recovery.
Automatic Enforcement Stay (Suspensión Automática)
- Upon the declaration of concurso mercantil, an automatic stay halts all individual collection actions. Creditors cannot continue litigation, enforce judgments, or seize assets independently.
- Any attachments placed on debtor assets within the 270 days before insolvency may be voided, returning assets to the collective pool for fair distribution among creditors.
- Secured creditors, while prevented from immediate enforcement, retain priority claims against their specific collateral within the insolvency proceedings.
Claim Filing Deadlines (Presentación de Reclamos)
- Creditors must file their proofs of claim (solicitud de reconocimiento de créditos) promptly upon insolvency declaration—typically within 20 days from the publication of the insolvency notice.
- Late filing risks claims being subordinated or rejected, drastically reducing recovery potential.
- Creditors are encouraged to provide comprehensive documentation, clearly demonstrating the validity, amount, and secured or unsecured status of their claims.
Secured vs Unsecured Priority (Prioridad de Acreedores)
- Mexican insolvency law categorizes creditors into clearly defined priority tiers:
- Labor claims: Wages and severance enjoy the highest priority, often ahead of secured creditors.
- Secured creditors: Claims secured by specific assets or collateral rank highly, with creditors often having the option to pursue collateral independently with court approval.
- Tax authorities: Claims for taxes and other governmental debts typically rank next.
- Common unsecured creditors: These are general trade creditors and unsecured lenders, who share any remaining assets proportionally after senior claims are settled.
- Creditors’ committees (comité de acreedores) frequently form among major creditors to represent collective interests effectively during negotiations.
Discharge Timelines (Plazos de Liberación)
- The insolvency process unfolds in two phases:
- Conciliation (Conciliación): This reorganization phase typically lasts 185 calendar days and can be extended twice by 90 days each, up to a maximum of one year. The goal is a creditor-approved restructuring plan allowing debtor operations to continue.
- Liquidation (Quiebra): If conciliation fails, liquidation ensues, assets are sold, and proceeds distributed according to creditor priorities. This phase can extend from several months to multiple years, depending on asset complexity.
- Debts remaining unpaid after liquidation generally become legally extinguished, meaning creditors cannot pursue further recovery outside of approved insolvency distributions.
Typical Insolvency Timeline Example
A typical Mexican insolvency (concurso mercantil) may progress as follows:
- Day 0: Insolvency petition filed by debtor or creditor.
- Day 60: Court issues insolvency declaration; automatic stay begins immediately.
- Day 80: Deadline for creditors to submit claims.
- Day 185–365: Conciliation period—attempts to restructure or reach a creditor-approved settlement.
- Day 366+ (if conciliation fails): Transition to liquidation phase—asset appraisals and auctions begin.
- 18–36 months from insolvency declaration: Assets fully liquidated and proceeds distributed.
Summary Table of Key Insolvency Facts – Mexico
Creditor Best Practices During Insolvency
- File claims immediately to ensure recognition and maximize your recovery potential.
- Monitor proceedings actively via the appointed conciliator’s reports and creditor committees.
- Consider negotiation flexibility—a partial settlement during conciliation may yield higher returns than liquidation.
- Understand asset protections—secured creditors should prioritize safeguarding collateral and ensure proper recognition of secured status.
Insolvency significantly reshapes the landscape for debt recovery in Mexico. By proactively understanding your role and timely participating in proceedings, you can effectively navigate insolvency complexities, ensuring the strongest possible recovery under Mexican law.
What Does Debt Collection in Mexico Cost?
Debt recovery involves standard legal and administrative costs—here’s a breakdown by stage and claim size.
Debt collection in Mexico typically incurs various costs throughout the amicable, judicial, and enforcement phases. Initially, these costs are borne by the creditor, but successful recovery efforts enable the creditor to recoup these expenses from the debtor as part of the final settlement or enforcement judgment.
1. Amicable Stage Costs
In the amicable phase (gestión amistosa), expenses are generally modest and primarily relate to formal communications, such as notarized payment demands (requerimiento notarial).
Typical Costs for Amicable Recovery – Mexico
2. Judicial Proceedings Costs
Costs escalate significantly during judicial proceedings, especially if specialized executive (juicio ejecutivo mercantil) or ordinary trials (juicio ordinario mercantil) are pursued. Court fees are minimal, but attorney and related expenses, such as translations and expert fees, can add up considerably.
Typical Costs for Judicial Debt Recovery – Mexico
3. Enforcement Actions Costs
Enforcement (etapa de ejecución) typically involves further expenses, such as appraisal fees, auction costs, and fees for bailiffs (actuarios), especially when asset seizures (embargo de bienes) or garnishments (embargo precautorio) are involved.
Typical Costs for Enforcement Actions – Mexico
Who Ultimately Pays?
Initially, the creditor covers all costs associated with collection actions. Upon a successful judgment, however, the debtor can be legally obligated to reimburse these expenses (costs and attorney fees, condena en costas), subject to statutory limits. Typically, Mexican courts award partial reimbursement based on official tariffs, not necessarily the full amount actually spent by the creditor. This partial cost recovery usually covers a reasonable percentage of incurred expenses, especially in executive cases.
Practical Cost Examples by Claim Size (Summary)
Note: These are indicative amounts based on typical cases. Actual costs may vary significantly based on case complexity, jurisdiction, attorney choice, and debtor cooperation.
Debitura, together with its vetted local partner, offers a no-cure-no-pay model for debt collection in Mexico. See full fee bands on our pricing page.
Statute of Limitations for Debt Claims in Mexico (prescripción)
In Mexico, the statute of limitations (prescripción) defines the period within which creditors must initiate legal action to enforce their claims. These limits vary significantly depending on the type of debt, with clear rules provided in both the Código de Comercio (Commercial Code) and the Código Civil Federal (Federal Civil Code). Understanding these deadlines is crucial, as missing them can lead to permanent loss of your enforcement rights.
Act before your rights expire—learn the legal time limits for debt enforcement, and how to reset or pause them.
Limitation Periods by Claim Type – Mexico
Events That Reset or Pause the Limitation Period:
- Reset by acknowledgment: Obtain debtor’s written acknowledgment (reconocimiento escrito) or partial payment to reset the statutory period.
- Interrupt by formal demand: File a judicial (demanda judicial) or notarial demand (requerimiento notarial) to interrupt the period.
- Suspend by litigation: Initiate court proceedings, arbitration, insolvency, or approved alternative dispute resolution to pause limitations.
- Pause by force majeure: Recognize statutory pauses due to extraordinary events such as natural disasters or pandemics (fuerza mayor).
- Pause by debtor concealment: Suspension recognized if the debtor is proven absent or intentionally concealed.
Managing these limitations effectively is essential to successful debt collection in Mexico, safeguarding creditor rights and ensuring claims remain enforceable.
Recognition & Enforcement of Foreign Claims in Mexico
Navigate the complexities of enforcing foreign judgments in Mexico, ensuring compliance with local legal procedures and treaties.
Key Considerations for Enforcement
Mexico recognizes foreign judgments through a judicial procedure known as exequatur, governed primarily by the Federal Code of Civil Procedure (FCCP). Successful enforcement hinges on satisfying several conditions:
- Finality: The foreign judgment must be final and no longer subject to appeal in its originating jurisdiction.
- Proper Jurisdiction: The foreign court must have had appropriate jurisdiction consistent with Mexican law.
- Due Process: Proof that the defendant was properly notified and had a fair chance to defend themselves in the original proceedings.
- No Conflicting Judgments: The judgment must not conflict with existing Mexican judgments or pending litigation.
- Public Policy Compliance: The judgment must align with Mexican public policy and fundamental principles.
- Reciprocity: Mexico generally expects reciprocal enforcement from the foreign jurisdiction, although this is broadly interpreted.
Applicable International Instruments
Mexico participates in several international conventions facilitating cross-border judicial cooperation:
- Hague Service Convention (1965): Streamlines international service of process.
- Hague Apostille Convention (1961): Simplifies the authentication of public documents for use in Mexico.
- Inter-American Convention on Extraterritorial Validity of Foreign Judgments (Montevideo, 1979): Facilitates mutual recognition among Latin American countries.
- New York Convention (1958): Enables efficient enforcement of foreign arbitral awards.
Debt Collection Statistics & Trends in Mexico
Explore the structure, volumes, and digital shifts shaping the debt recovery industry in Mexico.
Debt collection in Mexico is undergoing significant changes driven by regulatory updates, technological advancements, and shifts in economic conditions. Understanding these evolving trends can help creditors better manage risks and expectations.
Recent Industry Trends
- Digital Transformation: Mexican courts and creditors increasingly adopt electronic platforms for filing and tracking cases, partly accelerated by pandemic-related closures. The new National Code of Civil and Family Procedures (Código Nacional de Procedimientos Civiles y Familiares, CNPCF) emphasizes digitalization, enabling electronic filings and remote hearings to streamline judicial procedures.
- Growth in Oral Trials: Recent reforms, particularly the adoption of oral mercantile trials (juicios orales mercantiles), have notably reduced trial durations. Whereas traditional proceedings could last 2–4 years, oral trials often conclude within 1–2 years, significantly improving case throughput and reducing backlog.
- Increased Consumer Protection Oversight: Agencies like PROFECO (Federal Consumer Protection Agency) and CONDUSEF (National Commission for the Protection of Financial Services Users) have become more assertive in regulating debt collection practices, issuing detailed rules to curb harassment and protect debtor rights.
Recovery Rates by Sector (Indicative Estimates)
Macroeconomic and Legal Trends
Mexico’s broader economic environment significantly influences debt recovery dynamics. Economic volatility, inflation pressures, and fluctuating interest rates have heightened default risks, particularly for consumer and SME loans. In response, creditors have become more proactive, employing preventive credit monitoring and stricter loan origination practices.
From a legal perspective, the imminent nationwide adoption of the CNPCF by April 2027 promises greater uniformity in civil and commercial procedures, reducing jurisdictional discrepancies that historically complicated cross-state collections. Furthermore, Mexican insolvency procedures under the Ley de Concursos Mercantiles have evolved, increasingly recognizing cross-border insolvency cases under the UNCITRAL Model Law.
These shifts underscore the necessity for creditors to adapt strategically—leveraging digital tools, complying rigorously with regulatory frameworks, and proactively managing portfolio risks—to optimize outcomes in Mexico’s rapidly evolving debt recovery landscape.
Debt Collection Laws in Mexico
Navigating Mexico's legal framework is crucial for successful debt recovery. Understand civil, procedural, and consumer protection laws shaping your rights and obligations.
Mexico’s debt collection laws form a multi-layered system blending federal commercial and civil regulations with state-level procedural nuances. Creditors must understand the applicable statutes, the distinct court hierarchy, and consumer protection measures to manage debt collection effectively and compliantly.
Civil & Procedural Codes – Core Legal Framework
Mexican debt collection relies significantly on the Código de Comercio (Commercial Code), which governs commercial obligations such as supplier credits, loans, and merchant debts (Art. 1047). For civil debts, the Código Civil Federal (Federal Civil Code, Art. 1159) applies nationwide, complemented by similar state codes for local civil matters.
These codes set critical default rules including:
- Limitation Periods (Prescripción Negativa):
- Commercial & Civil Loans: 10 years
- Retail Debts: 1 year
- Negotiable Instruments (pagarés): 3 years (direct action), 6 months (regressive actions)
- Debt Acknowledgments & Tolling:
Written acknowledgments or part payments (reconocimiento escrito) reset limitation periods, essential for maintaining claim viability.
Court Structure Explained – Hierarchy & Thresholds
Debt collection litigation in Mexico occurs within a structured judicial framework comprising federal and state courts, each with specific jurisdictions:
- Local Civil Courts (Juzgados Civiles): Handle non-commercial civil debts and smaller merchant claims.
- Commercial Courts (Juzgados Mercantiles): Specialize in commercial disputes, applying federal commercial law (Código de Comercio) across states.
- Federal District Courts (Tribunales Federales): Address federal-level claims or constitutional issues (amparo actions).
- Appellate Courts (Tribunales de Alzada/Circuito): Review lower court decisions, often impacting timelines significantly (additional 1–2 years).
Consumer Protection & Data Privacy – Regulatory Considerations
Mexican creditors and debt collectors must comply strictly with consumer protection laws and data privacy regulations, notably:
- PROFECO (Federal Consumer Protection Agency):
Oversees consumer debts, protecting against aggressive collection practices. Regulations introduced in 2015 outline permissible conduct—calls only within business hours, transparency on debt amounts, and respectful interaction standards. - CONDUSEF (Financial Services User Protection):
Manages disputes involving financial institutions, enforcing strict compliance with fairness and transparency in collection methods. - Data Privacy (Ley Federal de Protección de Datos Personales):
Restricts handling and sharing of debtors' personal data, demanding explicit consent for collection and limiting data use strictly to debt-related actions.
Ensure compliant and ethical debt recovery with Debitura.
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Need a Debt Collection Agency in Mexico? Start Risk-Free Today
Debt collection in Mexico demands specialized knowledge of local regulations, compliance standards, and practical enforcement mechanisms. Ativo, our fully licensed local partner based in Mexico City, ensures your cases align strictly with Mexican laws, including the Código de Comercio and Código Civil Federal. Recover your debts risk-free with Debitura and our licensed local partner Ativo in Mexico City. Read more →
Why Choose Debitura in Mexico?
- Licensed Local Expertise: Ativo is officially registered with Mexico’s Public Registry of Commerce as an agencia de cobranza, fully authorized under Mexican law.
- No Cure, No Pay Model: Pay only when your debt is successfully recovered. Fees start as low as 7.5% upon successful collection.
- Real-Time Transparency: Access secure online tracking 24/7, following every stage from initial communication to final settlement.
- Rapid Response: Expect your case to be acknowledged and initiated within 24 hours of submission.
- Full Legal Compliance: Ativo complies fully with Mexican consumer protection and data privacy regulations, protecting your reputation and ensuring ethical collection practices.
Why Debitura? Your Trusted Authority in International Debt Collection
At Debitura, we uphold the highest standards of impartiality and precision to bring you comprehensive guides on international debt collection. Our editorial team boasts over a decade of specialized experience in this domain.
By the Numbers:
- Over 10 years of expertise in international debt collection.
- Network strength: More than 100 local attorneys worldwide.
- Recovery success: $100 million in debt recovered for our clients in the last 18 months alone.
- Client trust: An exceptional average rating of 4.97 out of 5, reflecting feedback from over 600 satisfied clients.
Expert-Led, Locally Validated Content
Our guides are authored by Robin Tam, a debt collection veteran with 16 years of global industry experience. All information is reviewed and verified by top local attorneys, ensuring accuracy and practical value.
FAQ
Explore our most common FAQs below—or reach out directly at contact@debitura.com if you need help with a specific case.
How do I collect a debt in Mexico as a foreign business?
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Foreign creditors can collect debts in Mexico by appointing a local attorney with a notarized Power of Attorney (poder para pleitos y cobranzas). Documents must be authenticated (apostilled) and translated. Once represented, creditors can initiate amicable collection or judicial proceedings under Mexican law (Código de Comercio, Art. 1061).
Can I charge interest on overdue invoices in Mexico?
Yes, creditors may charge agreed contractual interest rates. If no rate was set, the default statutory interest rate for commercial debts under the Código de Comercio (Art. 362) is 6% annually, unless otherwise stated. Courts will enforce reasonable interest clauses.
What are typical fees for debt recovery in Mexico?
Court fees are generally minimal or negligible, but attorney fees vary widely. Lawyers typically charge 10–20% of the recovered amount as contingency fees. Judicial costs can include incidental expenses such as notifications and expert appraisals (Estado de México Arancel).
How long is a debt enforceable in Mexico?
General commercial and civil debts have a limitation period of 10 years (Código de Comercio, Art. 1047; Código Civil Federal, Art. 1159). Shorter periods apply for negotiable instruments like promissory notes (3 years) and checks (6 months), under Ley General de Títulos y Operaciones de Crédito (LGTOC, Arts. 150-195 bis).
How do you collect a debt judicially in Mexico?
To collect a debt judicially in Mexico, the creditor files a commercial or civil lawsuit in the appropriate court, supported by original documentation proving the debt. The process involves formal service of process on the debtor, an oral or written trial, and eventual seizure of assets (Código Nacional de Procedimientos Civiles y Familiares).
Can I collect a debt in Mexico without going to court?
Yes, most debt collections in Mexico start amicably with reminders and negotiations. Formal demand letters (requerimientos de pago notariales) can strengthen your position by establishing legal proof of notification. Judicial action is required only if amicable resolution fails (PROFECO Decree A/002/2015).
Can I hire a lawyer or debt collection agency in Mexico from abroad?
Yes, foreign creditors typically appoint local attorneys or agencies via a notarized and apostilled Power of Attorney (poder para pleitos y cobranzas). The local representative handles all Mexican legal procedures, ensuring compliance with local rules (Código Civil Federal, Art. 2554).
What happens if a debtor in Mexico ignores payment reminders?
If amicable reminders fail, creditors can proceed with judicial action, such as an executive mercantile trial (juicio ejecutivo mercantil). Mexican courts can order immediate asset seizure (embargo precautorio) if the creditor holds a valid debt instrument, per Código de Comercio, Art. 1391.
Is there a minimum claim size for legal action in Mexico?
No specific minimum, but smaller claims under MXN $35,000 typically use small-claims courts (Juzgados de Cuantía Menor) with simplified procedures, taking approximately 6–12 months. Higher claims go through regular mercantile courts (Código de Comercio).
Does insolvency in Mexico wipe out all debts?
In insolvency (concurso mercantil), debts may be restructured or partially forgiven through creditor agreements. Secured creditors typically retain priority rights to collateral proceeds. Unsecured debts often receive partial payments based on asset liquidation results, potentially extinguishing remaining balances (Ley de Concursos Mercantiles, Art. 217).
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