Checklist for Debt Collection in Mexico

Mexican law does no impose a minimum value for persuing legal action to recover debt. This means you can legally attempt to collect even small amounts.

In Mexico, civil matters are heard by local (state) courts, and the applicable procedure depends on the amount in dispute and the type of legal action.

With respect to commercial matters, both federal and local courts have jurisdiction, as commercial actions are subject to concurrent jurisdiction under Mexican law.

10 years (ordinary term for commercial and civil debt, special regimes apply to certain claims)

Acknowledgment of debt, request for debt prosecution, court action.

No need of a formal proxy, but signed power of attorney is customary.

Contract, invoices, statements of account, promissory notes, any acknowledgment of debt, useful correspondence.

Approximately 12 months after service of process to obtain a first-instance ruling. Provisional enforcement may be available if the prevailing party requests it and posts a bond to secure potential damages and loss of profits to the opposing party.

Legal fees may be assessed against the losing party, typically in an amount of approximately 8% of the claim; however, recovery of such fees is not common in practice.

The statutory interest rate for interest in arrears is six percent (6%) per annum in commercial matters and nine percent (9%) per annum in civil matters.

No. A warning or demand letter is not mandatory to initiate legal action. However, if the obligation does not have a defined due date, the debtor must first be formally notified and placed in default. In practice, sending a demand letter is recommended, as it often facilitates voluntary payment and reduces time and costs.

Creditors can significantly improve debt recovery prospects by adopting a proactive and well-structured strategy, including:

• Strong contractual documentation, with clear payment terms, default interest, jurisdiction, and enforceable guarantees.
• Early out-of-court action, such as formal demand letters, to place the debtor in default and encourage voluntary payment.
• Proper selection of legal proceedings, based on the available documentation, to ensure procedural efficiency.
• Use of interim measures, including asset freezes or attachments, to prevent asset dissipation.
• Flexibility in enforcement, combining litigation with negotiation, mediation, or other complementary tools where appropriate.

Injunction may be requested to secure enforcement, subject to prima facie evidence and the posting of a bond.

Yes. Uncollectible debts may be written off for tax purposes if: (i) the statute of limitations has expired, or (ii) recovery is clearly impractical. Applicable tax regulations establish specific requirements for deductibility, which must be analyzed on a case-by-case basis.