ENTRUST YOUR OUTSTANDING RECEIVABLES IN THAILAND TO INVENIUM
Credit collection in Thailand is often a difficult task especially if the debtor refuses to reach an amicable settlement.
Often the lack of a payment conceals the attempt to obtain a significant discount. In Thailand, therefore, the best strategy is to proceed with out-of-court activities in an attempt to reach a settlement at a discount, in any case avoiding litigation since:
- The Thai legal system does not envisage any special order for payment procedure.
- Thailand is not party to any international treaty or convention concerning the acknowledgement and enforcement of foreign rulings.
Should out-of-court attempts not be successful, it is possible to take legal action, also bearing in mind that the standard limitation period is 10 years and that arrears interest cannot always be applied.
Usually in Thailand, a formal notice to comply is sent in which a payment deadline of 7 to 15 days is given. In the absence of the payment an application is filed with the details of events. The Court carries out a preliminary examination of the application and, if it does not find impediments to its admissibility, a hearing is set and a notice is issued to be brought to the attention of the defendant within 7 days.
The debtor then has 15 to 30 days for the filing its entry of appearance, setting out its defense and proposing any counterclaims.