Thailand Debt Collection

Businesses in Thailand are set up on contracts, some of which may not be honored by the other party with whom the company has made a deal. As a result, the business must move forward with debt collection using a variety of techniques, in compliance with local law and also based on the debtor’s response to the claims. Our selected team of Thai lawyers can assist foreign investors or local businessmen that are involved in a debt collection scenario by providing advice on the strategies that can be used in this circumstance.

We help clients who want to collect debts through negotiation or litigation. Our selected lawyers in Thailand have a wealth of knowledge in company law and can represent clients in court.We can help you in Bangkok,Chian Mai,Ayutthaya,Phuket,Krabi,Koh Samui,Koh Phangan,Koh Tao,Kanchanaburi,Pattaya cities of Thailand.

The debt collection laws in Thailand

In Thailand, there are two methods for collecting debts: an informal process and a formal process through the courts. Nevertheless, under Civil Law, court debt collection is permitted in the following situations:

  1. The claimant must provide a witness who can vouch for the existence of a contract for a loan of up to 2,000 baths.
  2.  The contract must have been reached in writing and must be produced in court for sums exceeding the 2,000 Baht limit.
  3. The debt collection process, regardless of its format, shall not include any compound interest accruing from the judge-admitted parties’ interests.



4. Recovering a loan in a foreign currency at the going exchange rate is another option .

5.    If the creditor agrees, a pecuniary debt may also be paid back with products or real estate.

It should be remembered that both individuals and businesses have the right to ask for a debt to be recovered in court. More details on the Civil Code’s rules governing the process of collecting debts are available from our Thai attorneys. If clients so wish, we can also help with the informal and formal debt recovery processes. 

Thailand payments

Payments incurred by a debtor in Thailand must be made within 30 days of the contract’s effective date. Payments can be postponed for up to 20 days under commercial law, but the debtor will be required to pay interest, which can amount to 15% of the contract’s value. If a fixed interest rate is not specified in the contract, 7.5 percent of the transaction value will be added to the contract’s balance.

Thai debt collection procedures

The following stages make up the debt recovery procedure:

  • pre-trial debt collection.
  • Debt collection involving a Thai court
The company’s process for collecting a debt, which entails two parties speaking directly to one another, is referred to as the first phase. The debtor will receive a demand letter from a corporate representative asking him to pay the contract’s worth. If this approach is unsuccessful, the matter will be brought before a Thai court, which is often located in the Court of Justice. A claim will be submitted by the creditor and forwarded to the debtor. Additionally, the attorneys on our team can stand in for clients in a variety of court matters.

Thailand's amiable debt collecting process

Both individuals and businesses might be the target of a debt collection process, although Thai businesses frequently enter into commercial agreements with other domestic or international businesses.

  •  Natural folks frequently use the amicable method because it is less expensive and takes less time to finish. The initial phase in any such approach is the amicable debt recovery process, and it.
  • Engaging a law firm with experience in debt collection cases to get in touch with the debtor and alert them on the debt.
  • The initial point of contact will be by phone, and one or more dunning letters will follow within the following 7 to 15 days;
  • A new agreement in this sense will be created if the debtor agrees to pay the amount; at this point, the debt can be paid off in interest-free installments
  • The creditor may request that the debt collection process be transferred to court if the debtor refuses to pay or doesn’t answer the demand letters
  • The debtor will now be compelled to select a legal representative to represent them in the Thai court

Thailand’s  court process

The debtor will be required to appear before the judge to present his or her case if the debt collecting process transitions into a court process. All relevant evidence for the case must be provided by the claimant, which frequently entails witnesses (or at least one witness, as indicated above), the contract at issue, and, if an amicable settlement attempt was made before filing suit, the dunning letters addressed to the defendant. To ensure the success of your claim, it is best to enlist the specialist assistance of debt collection lawyers in Thailand during the court debt recovery process.

Thai debt recovery by foreign enterprises

Both domestic and foreign businesses occasionally need to recoup debts owed to partners or clients. Foreign businesses with branches or subsidiaries in Thailand may also ask for the collection of a debt owed to them from a Thai business operating there. It should be mentioned, nonetheless, that the Thai legal system will be followed in this instance. Thai corporations may also request that debts resulting from business dealings with international companies be collected in the home country of those companies, subject to compliance with local legal requirements.

Our Thai legal firm can help if you need assistance with commercial debt recovery proceedings.

Our Thai attorneys offer help with debt recovery.If you’re dealing with a debt collection process, our selected Thai lawyers can help because they have extensive experience in corporate and civil problems. We can help customers who are interested in the court-ordered or amicable debt collection process. We urge clients to try to settle any financial dispute amicably to avoid a drawn-out and expensive legal process. The process can then be taken to court if the situation calls for it. 

This typically occurs if the debtor doesn’t reply within a month following the initial payment request. Please get in touch with our legal team if you require more information about debt collection in Thailand. Our selected lawyers can offer you support or legal representation in front of a Thai court. Or if you need debt recovery in Dubai while living in Thailand then we can also help you in this regard


Debt collection in Thailand can only be done by skilled and professional debt collectors or agencies. As we know that it is difficult to win the trust of clients and especially in case debt or financial issues. That’s why our associate debt collectors provide free advice and consultancy on such matters. Our goal is to provide a cost-effective and swift solution for debt recovery to our clients.

Though we can manage any type of debt such as commercial or consumer with the help of our associate debt collectors and lawyers, we recommend our clients to go for an amicable solution in the first place. This is due to the fact that amicable solutions are very affordable and takes less time to complete as compared to legal proceedings. if you want to contact the law firm in Thailand then call us now

Translate »