Being Sued for Debt and Facing Enforcement: What Debtors Need to Do

This guide is written for the debtor side, from the day the court summons is received until the day of seizure or attachment. The most damaging thing in this kind of situation is not lacking money, but letting the deadline pass without taking any action, because the options at each stage are open only for a limited time.

If you are on the creditor side seeking to recover money, the more relevant guide is Debt Collection, Asset Tracing, and Enforcement.

Step 1 — You have received a court summons: do not ignore it under any circumstances

The most common mistake people make is thinking that, since they cannot pay anyway, showing up or not makes no difference. That is not true.

Failing to appear on the scheduled date makes the court proceed with the case without any defense from our side. The result is usually losing for the full amount claimed by the plaintiff, including interest and court costs, even though many cases have genuinely arguable issues, such as:

• whether the claimed amount is calculated correctly, especially the interest and penalties;
• whether the debt is already time-barred, which the court will not raise on its own — the debtor must raise it as a defense;
• whether the plaintiff is truly the party entitled to claim, in cases where the debt has been transferred through several assignments;
• whether partial payments have already been made but were not deducted.

What you should do in the first week is check the hearing date on the summons carefully, keep the contract and all payment evidence you can find, and have a lawyer read the complaint before the hearing date. Going to court does not mean you have to fight to the end. Many cases end in mediation with genuinely workable installment terms, which is a better outcome than losing by default.

Step 2 — A judgment has been issued: there is still time to reach an agreement

When the court has issued a judgment, there is a designated period for compliance before the creditor can proceed with enforcement. This is the period in which negotiation can still take place in the best atmosphere remaining, because the creditor also has to bear costs and spend time tracing assets and carrying out enforcement.

What you should do

• Contact the creditor or the creditor's lawyer in writing, not by phone and relying on memory.
• Propose a figure that is realistic and sustainable, rather than an attractive figure that defaults in the third month.
• State clearly which amounts the agreement covers, whether interest continues to accrue, and what the creditor will do with the enforcement once payment is made in full.

Step 3 — Salary Garnishment or Asset Seizure

On salary: The law does not permit the entire amount of salary to be garnished. There is a ceiling on the proportion that may be garnished, and criteria protect the lower portion of income from being subject to execution. In addition, certain types of money have a legal status different from ordinary salary. This is a point where both sides often miscalculate, so the amount actually garnished should be checked to see whether it exceeds what the law allows.

On assets: The law exempts certain assets from seizure, such as household items reasonably necessary for daily living and tools necessary for carrying on one's occupation within the prescribed limits. And if the seized property belongs to another person who is not the debtor — such as the spouse's separate property or property of relatives living in the same household — the true owner has a legal avenue to request the release of that property.

All of the above avenues are subject to time limits. Keeping the writs and every document received, along with recording the date of receipt, is more important than one might think, because the date of receipt is the starting point for the right to contest.

Step 4 — House or Land Is About to Be Sold at Public Auction

This is the step where the remaining options are the most limited, but not entirely nonexistent. Available routes depending on the circumstances include:

• Pay or deposit money to have the execution withdrawn
• Reach an agreement with the creditor before the sale date, because many creditors are willing to negotiate since auction sales usually fetch less than expected
• Lodge an objection when legal grounds exist, such as an incorrect appraised price or improper sale method
• Examine the rights of pre-existing occupants and tenants, which is a separate matter from the debt itself

What cannot be done and will only make matters worse is transferring the property to relatives in order to evade execution, because such a transfer can be revoked and may be followed by other adverse consequences.

If Debts Are Truly Overwhelming

When debts exceed what can be managed case by case, you should assess the overall picture instead of rushing to resolve each summons individually. This includes consolidating debts for a single negotiation package, using available mediation channels, and considering bankruptcy law procedures, which have both benefits and drawbacks that must be weighed. What should be avoided is borrowing new money to cover old debts without restructuring, because that increases the total amount and adds to the number of creditors you must negotiate with.

Short Summary

1. If you receive a court summons, you must appear even if you have no money, because not appearing means losing the defenses you have.
2. Prescription is a right that must be raised by yourself; the court will not raise it on your behalf.
3. The period after judgment but before execution is the best time to negotiate.
4. Salary can be garnished only up to the cap, and certain assets cannot be seized.
5. Every avenue of objection has a time limit, so always note the date you receive documents.
6. Do not transfer assets to evade execution.

Read more

• Debt Collection, Asset Tracing and Enforcement (Creditor Side)
• Creditor Rights in Bankruptcy and Business Rehabilitation
• Scammed Online: How to File a Police Report to Have a Chance of Getting Your Money Back
• Salary Not Paid, Employer Owes Wages: How to Claim It Back

This guide was prepared by Suwanvara Law Firm — founded in B.E. 2529, head office in Khon Kaen, Bangkok branch. This content is general information and is not legal advice for any specific case. The outcome of each matter depends on the facts and evidence of that particular matter. Before taking any action, you should consult with a professional.