How to collect an international debt

If you are owed money by someone in another country, it's not always easy to collect. This is especially true if the debtor is also a foreigner who may not have assets or income in your home country. You'll need to be prepared to take on some legwork and know where to look for payment.

Understand cross-border insolvency.

Cross-border insolvency is when a debtor has assets in more than one country, or when the business or individual is based in one country but owes money to creditors in another.

• Cross-border debt restructuring – where a creditor can petition the court in their home jurisdiction to make changes to an existing contractual agreement with a debtor. For example, if an Australian company owed $100,000 AUD to a creditor based in New Zealand and was unable to pay its debts as they became due for whatever reason (e.g., bankruptcy), then that creditor could petition the New Zealand courts for permission to have those debts restructured as part of their business plan moving forward. This would allow them to pay back less than what they originally owed over time while preserving some equity interest within the company itself or perhaps even taking over control completely if it makes financial sense for them! However, this type of process only works once both parties agree on terms—if not then we'd recommend contacting us first before proceeding further down this path with any potential recovery strategy."

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Have a strategy.

If you're going to collect on a debt, you need to have a strategy. Your strategy should be based on the facts of the case and the laws of both your country and where the debtor lives. You'll want to include in your plan how you will enforce a judgment if necessary—often through seizure and sale of assets or garnishment of wages.

Understand the local laws.

• Understand the local laws. In international debt collection, you must be sure to understand not just the laws of your home country, but also those of the country where your debtor lives and works. Different countries have different legal systems—some are common law and some are civil law—and in some cases, there may be regional differences as well. It's important to know how these differences affect how debts can be collected in each locale.
  
• Understand the local legal culture: For example, did someone at your company tell you about a particularly important holiday when visiting their country? Did he or she even mention that it was an important holiday? While working with an interpreter can help manage this issue, it would be helpful if someone had at least brushed up on some basic facts before leaving home!
  
• Learn about local institutions: When collecting a debt overseas, knowing which institutions will have authority over financial matters (e.g., courts) is essential; if they don't exist yet then we need to make sure they're created before starting collection efforts
  

Monitor the legal developments in the country where the debtor is located.

Monitoring the legal developments in the country where the debtor is located is a smart strategy for collecting an international debt. Pay attention to any changes in legislation that might affect your ability to collect, and follow the news, read local newspapers and talk to local lawyers. These activities can help you identify opportunities to collect a debt before they're gone.

Retain a local attorney.

Once you've decided to hire an attorney, it's important to retain one who specializes in the area of international law. A good place to start would be finding someone with experience in debt collection, cross-border insolvency or both.

An attorney with expertise in these areas will have an understanding of cross-border laws and regulations and how they impact collection efforts.

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Choose an agent who can deal with multiple languages and currencies.

As you begin your search for a debt collection agency, make sure that they can deal with multiple languages and currencies. You may have to deal with translators in the debtor's country as well as currency conversion, communications with the debtor, translation of documents and court proceedings.

You should be able to find a reputable agency online by searching for "international debt collection agencies".

Include a choice of law and forum selection clause in your contract with the foreign debtor.

If you're an American business owner, and your contract with a foreign debtor includes a choice of law clause and forum selection clause, there are two ways these clauses can protect you. First, they ensure that any disputes over the contract are resolved according to the laws of your state rather than those of another country (including the country where your debtor resides). Second, they allow you to sue in U.S. courts if your debtor refuses to honor its agreement with you.

Choice of law refers to which law applies when someone files suit against another person or entity over an issue related to their contract. Forum selection refers specifically to where such lawsuits can be brought—either in court on one's own home turf or in court in another jurisdiction altogether (such as when one party lives abroad).

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See if a court in your own country will recognize international judgments.

See if a court in your own country will recognize international judgments. The judgment must be enforceable in the country where the debtor is located, and it must also be enforceable under the laws of both countries. If you are seeking to collect on an international debt, it is important to check with a lawyer before taking any action.

To collect on an international debt, talk with our attorneys today!

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In order to collect debt internationally, you'll need to understand both local and international law.

Collecting an international debt can be complicated, especially if you’re unfamiliar with the laws of the country where you’re trying to collect.

You need to know how to collect debt in that country and whether you can enforce an international judgment in your own country. You also have to consider whether there is a choice of law clause in the contract between your client and their debtor.

Collecting international debt is not a simple matter of filing a lawsuit and waiting for the money to come in. It requires careful planning, good legal advice and a lot of patience. However, if you follow these steps, you can recover what is owed to you by foreign creditors who have no intention of paying up voluntarily.