The core answer
A Thai debt recovery instruction from abroad goes well when three things are settled at the start: the evidence, the limitation position and a phased budget with decision points. After that, the creditor needs regular, short reports that say where the matter is and what decision is needed next.
The rule (Civil and Commercial Code, Civil Procedure Code and Debt Collection Act). The general limitation period under the Civil and Commercial Code is 10 years (section 193/30), but many trade claims have a two-year period (section 193/34), and a debtor's acknowledgement interrupts the period (section 193/14). A compromise approved by the court becomes a judgment (Civil Procedure Code section 138), and a judgment must be enforced within 10 years (section 274). Anyone carrying on a debt collection business must register under the Debt Collection Act B.E. 2558, which also sets standards for how debtors may be contacted.
Our practical view. Send the full evidence pack first, ask for a written view on limitation and forum, approve the budget one phase at a time, and write down who may agree a settlement.
For the creditor's own view of the process, see recovering a Thai debt without leaving head office.
1. What evidence should the instructing firm send?
| Evidence | What to send | Why it matters |
|---|---|---|
| Contract and terms | Signed contract, order confirmations, terms of trade, including governing law and any court or arbitration clause | Decides the forum and the terms the claim rests on |
| Invoices and delivery | Invoices, delivery notes, acceptance or sign-off records | Proves the amount and that goods or services were delivered |
| Correspondence | Emails, chat messages and letters about the debt, especially admissions and complaints | Admissions may interrupt limitation; complaints show likely defences |
| Statement of account | Running statement showing invoices, payments and credit notes | The basis for calculating the claim |
| Security | Guarantees, mortgages, cheques, retention of title clauses | Other routes to recovery |
| Debtor details | Exact registered Thai name, registration number, address, directors | Suing the right entity |
| Steps already taken | Demands sent, agency notes, settlement offers made or received | Avoids repeating or contradicting earlier steps |
| Judgment or award | Certified copy, if one exists | Changes the route; see section 8 |
Translations and formalities. When a foreign-language document is filed in a Thai court, the court orders a certified Thai translation of the whole or the essential parts (Civil Procedure Code section 46). A power of attorney signed abroad usually needs notarisation and legalisation through a Thai embassy or consulate. Thailand has joined the Apostille Convention, but it takes effect for Thailand only on 28 February 2027.
2. What can be checked about the debtor before instructing?
- Company records at the Department of Business Development: registered name, status (operating, dissolved, in liquidation), directors, signing authority, registered address and filed financial statements.
- Bankruptcy and enforcement records at the Legal Execution Department: whether the debtor is bankrupt, in business reorganisation or already subject to enforcement.
- What the creditor already knows: premises, vehicles, customers who owe the debtor money, the bank the debtor paid from.
Limits. There is no general search of a debtor's bank accounts before judgment. Personal data rules limit what can be gathered on individuals, and any investigator's information must be lawfully obtained. Thai counsel should say in writing what was checked, on what date, and what could not be checked.
If the debtor is a company with little left, the question becomes whether recovery is worth the cost. That is the client's decision, made on the assessment.
3. Is the claim still in time?
Check limitation first. The period depends on the type of claim and the parties:
- The general period is 10 years (section 193/30).
- Many trade claims by merchants, manufacturers and service providers for goods delivered or work done have a two-year period (section 193/34). Some claims of the same kind have a longer period depending on the debtor's business, so the exact period needs checking on the facts.
- A debtor's written acknowledgement, a part payment or the giving of security interrupts the period (section 193/14), and a new period starts.
Send Thai counsel every document that might be an acknowledgement. A short email from the debtor's finance team agreeing the balance can change the analysis.
4. How should the budget be phased?
| Phase | What happens | Decision for the client |
|---|---|---|
| 1. Assessment | Review evidence, debtor check, limitation, forum | Proceed, and by which route |
| 2. Demand | Formal demand letter with a deadline | Wait, negotiate or sue |
| 3. Negotiation | Payment plan, security, settlement terms | Accept terms within the settlement authority |
| 4. Court action | File the claim, hearings, judgment | Continue to judgment or settle |
| 5. Enforcement | Seizure and attachment through the Legal Execution Department | Which assets to pursue; cost against likely return |
| 6. Insolvency | Bankruptcy petition or claim in reorganisation | Only where it helps recovery |
Agree an estimate for each phase and do not start the next phase without approval. Court fees, service costs, translations and enforcement costs are disbursements on top of professional fees. This guide gives no fee figures.
If you are the instructing firm or agency, check your own professional rules before agreeing any fee arrangement with Thai counsel.
5. Who can approve a settlement?
Write down the settlement authority before negotiation starts:
- who on the creditor's side may approve terms
- the minimum terms Thai counsel may accept without coming back
- whether instalments are acceptable, and over what period
- what security is required, and what happens on default
A compromise made in court and approved by the court becomes a judgment (Civil Procedure Code section 138), so if the debtor misses instalments the creditor can enforce it without starting again. An out-of-court settlement is a contract, and on default the creditor usually has to sue on it. Any judgment must be enforced within 10 years (section 274).
6. How does the Debt Collection Act affect the work?
The Debt Collection Act B.E. 2558 requires anyone carrying on a debt collection business to register. A lawyer acting for a creditor client is treated differently from a collection business, and a lawyer who runs a collection business registers with the Lawyers Council.
Whoever contacts the debtor, the safe practice follows the Act's conduct standards:
- say who is contacting the debtor and for whom
- contact the debtor only at reasonable times and places
- do not threaten, insult or mislead
- do not disclose the debt to third parties such as the debtor's family, employer or customers
If an overseas collection agency has already contacted the debtor, tell Thai counsel how, when and what was said.
7. Sample status report (fictional)
The example below is entirely fictional. The parties and events are invented to show the format.
CASE STATUS — Example Supplies Ltd v Example Retail (Thailand) Co., Ltd. (fictional)
Instructing firm: [overseas firm] Report no.: 3 Date: [date]
1. WHERE WE ARE
Phase 3 (negotiation). Demand letter served [date].
Debtor replied [date]: admits the invoices, disputes late-payment interest.
2. WHAT CHANGED SINCE THE LAST REPORT
Debtor's written reply acknowledges the principal.
Limitation note: the acknowledgement interrupts prescription; copy on file.
3. DEBTOR CHECK
Company operating per DBD record dated [date].
No bankruptcy or reorganisation record found, LED search dated [date].
4. DECISIONS NEEDED FROM THE CLIENT
a. Accept instalments on the principal and drop interest?
(outside current settlement authority)
b. If no agreement by [date], approve the phase 4 estimate.
5. BUDGET
Phase 3: within estimate. Phase 4 estimate attached for approval.
6. NEXT STEP AND DATE
Without-prejudice meeting with debtor's counsel on [date].
Keep each report to one page. Put decisions needed near the top, with the date by which they are needed.
8. What about a foreign judgment or arbitral award?
- Foreign court judgment. Thailand does not generally enforce foreign court judgments directly. The creditor usually files a new action in a Thai court, and the foreign judgment is used as evidence. The Thai court decides the claim itself.
- Foreign arbitral award. Under the Arbitration Act B.E. 2545 a foreign award can be enforced if it falls under a treaty Thailand is party to (section 41). The application must be filed within three years from when the award became enforceable (section 42).
If a dispute is still to be resolved, these differences can matter when choosing between court and arbitration in future contracts with Thai customers.
9. Checklist
- Send the full evidence pack, including all correspondence.
- Confirm the debtor's exact registered name and status.
- Get a written view on limitation and forum before anything else.
- Agree a phased budget with a decision point for each phase.
- Write down the settlement authority before negotiation.
- Tell Thai counsel about any earlier collection contact.
- Ask for one-page reports with decisions needed at the top.
- For a foreign judgment or award, check the route at intake.
Further reading
- Recovering a Thai debt without leaving head office
- Unpaid invoices from business customers in Thailand
- Debt collection and enforcement in Thailand
- How long a civil case takes in Thailand
Send the evidence, settle limitation and budget phases first, and write down who may agree a settlement before talks begin.
We act for creditors in Thai debt recovery, instructed by the creditor directly or through its overseas counsel or collection agency. For an initial consultation, call +66 92 254 2045 or send us the details. See also demand letters, asset tracing and civil litigation.
This guide is published by Suwanvara Law Firm — a Khon Kaen law firm established in 1986. General information only, not legal advice on a specific matter.
