For foreigners, the Mexican market is of commercial importance and relevance, which is why in the first quarter of 2020 foreign investment increased by 4.2 compared to the first quarter of 2019.
Commercially speaking, Mexico is an attractive market for foreign investment, commercially it is common that due to ignorance of the rules and the Mexican legal system, there is a mismanagement of the base documents of the action to perform a fruitful collection action against its debtors in Mexico.
Thus, to ensure the proper collection of the debt in Mexico, different preventive actions must be taken into account in order to have sufficient legal support to start legal action and obtain a favorable resolution regarding the payment of the debt:
- Have basic documents to start legal action. Depending on the type of document that is available, it will be the type of legal procedure that can be initiated and to a large extent the success of the legal action to initiate will depend on these documents. These documents are recommended to be:
A) Service or Sales Contract.
B) Executive title that protects the value of the merchandise sold (Promissory Note).
C) Invoices for sales and documentation that proves the correct reception of said merchandise.
Counting on some of these three documents, legal actions may be taken to obtain the payment of what is owed abroad.
2. The second point to consider when initiating collection actions in Mexico by foreigners is to ensure the payment of what is owed, as is known, the Mexican legal system is slow to issue resolutions and due to that the ensuring debt collection becomes essential when filing legal action against a debtor located in Mexico.
The possibility of ensuring the payment of the debt will depend on the base document of the action for which legal action is performed, but it may even be possible to seize movable and immovable property that protect the payment of the debt and assurance of the debtor’s bank accounts, situation that serves as a measure of pressure to liquidate the debt.
These measures are of great help when, due to the lack of internal control mechanisms that regulate commercial relations, there are no suitable documents to perform an effective and rapid collection, thereby ensuring compliance with the judgment of the main process and even generating a forced approach by the debtor to initiate payment talks with the creditor.
