Unpaid invoices and broken promises are the nightmares of doing business anywhere, but when the debtor is thousands of miles away in Thailand, the stress is amplified. You might feel helpless, wondering if your money is gone forever or if the local legal system will actually protect a foreigner.
If you are searching for a Thailand debt recovery law firm, you are likely already frustrated. We understand. The good news is that Thailand has significantly tightened its laws in recent years to protect creditors and stop "cowboy" collection tactics. This guide will walk you through the legal reality of recovering debt in the Kingdom, the strict rules lawyers must follow, and who you should call to get your money back.
Why You Can Trust Us
At Thai Investment Visa, we facilitate high-level investment and residency, which means we often see the flip side of the coin: business deals that go sour. We are not a debt collection agency, but we work alongside the country's top legal minds daily. We have witnessed the shift since the Debt Collection Act 2015 came into force, effectively cleaning up the industry. The advice below comes from our direct professional network of licensed Thai attorneys and our experience navigating the Legal Execution Department protocols. We know who delivers results and who just sends expensive letters.
The Legal Reality: It’s Not the Wild West Anymore
In the past, debt collection in Thailand had a reputation for being aggressive and unregulated. That changed dramatically with the Debt Collection Act B.E. 2558 (2015).
If you are hiring a professional, you need to know what they can and cannot do. The law is strict. A legal firm cannot:
- Threaten physical harm or damage to property (obviously).
- Publicly humiliate the debtor (e.g., posting on Facebook or shouting in front of neighbors).
- Contact the debtor outside of 8:00 AM – 8:00 PM (Mon-Fri).
- Deceive the debtor with fake government documents.
If your lawyer violates these rules, you (the creditor) can face penalties too. This is why hiring a reputable law firm specializing in debt collection is safer than hiring a "fixer."
The Ticking Clock: Statute of Limitations
Time is your enemy in Thailand. The Civil and Commercial Code sets strict deadlines (Prescription Periods) for filing a lawsuit. If you wait too long, your claim is dead.
- General Loans: 10 Years.
- Commercial Invoices (B2B): 2 Years.
- Professional Fees (Doctors, Engineers, Lawyers): 2 Years.
- Rent/Arrears: 5 Years.
Tip: Sending a demand letter does NOT stop the clock. Only filing a complaint with the Court interrupts the prescription period.
The Recovery Process: Step-by-Step
Step 1: Amicable Negotiation & Notice
Before going to court, a professional firm will send a Notice of Demand. This is a formal legal letter sent via registered mail giving the debtor a final chance to pay (usually 7 to 15 days). Surprisingly, the sight of a formal law firm’s letterhead is often enough to trigger payment from debtors who were previously ignoring you.
Step 2: Filing the Lawsuit
If they ignore the notice, your lawyer files a complaint with the proper Court (e.g., Civil Court or Municipal Court depending on the amount).
- Simple Case: If the debt is straightforward (e.g., a loan agreement), the court may schedule a mediation session first.
- Mediation: Thailand courts heavily favor compromise. You might agree to a monthly installment plan here.
Step 3: Judgment and Enforcement
Winning the case is only half the battle. If the debtor still refuses to pay after the judgment, your lawyer must petition the Legal Execution Department (LED). This allows you to:
- Seize assets (land, condos, cars).
- Freeze bank accounts.
- Garnish salaries (for individuals).
Top Debt Recovery Law Firms in Thailand
Choosing the right shark to swim in these waters is crucial. You need a firm that understands both international expectations and local enforcement reality. Below is a curated list of firms known for their litigation and dispute resolution tracks.
Company NameSpecialtyLocationContactChaninat & LeedsUS-Thai Litigation, International DebtBangkok (Sukhumvit 13)www.thailand-lawyer.comFrank Legal & TaxCorporate Commercial, InsolvencyBangkok (Wireless Rd)www.franklegaltax.comJuslaws & ConsultCommercial Disputes, Debt EnforcementBangkok / Phuketwww.juslaws.comSilk LegalModern Law, Tech/Crypto Debt, InsolvencyBangkok (Phrom Phong)www.silklegal.comH&P (Herrera & Partners)Corporate Litigation, Supply Chain DisputesBangkok (Asoke)www.herrera-partners.com
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Contact Information for Legal Assistance
Here are the direct details to reach out to these experts.
- Chaninat & Leeds
- Phone: +66 2 168 7001
- Address: Trendy Office Building, 18th Floor, Sukhumvit Soi 13, Bangkok.
- Why them: Founded by a US attorney, they bridge the cultural gap well for Western clients and are aggressive in litigation.
- Frank Legal & Tax
- Phone: +66 2 117 9131
- Address: Sindhorn Building, Tower 2, Wireless Road, Bangkok.
- Why them: Excellent for corporate debt and navigating insolvency if your debtor is a company going bankrupt.
- Juslaws & Consult
- Phone: +66 2 254 4237
- Address: Muse Building, Sukhumvit 64, Bangkok.
- Why them: Strong presence in both Bangkok and Phuket, useful if your debtor is in the southern tourist zones.
- Silk Legal
- Phone: +66 2 107 2007
- Address: RSU Tower, Sukhumvit 31, Bangkok.
- Why them: Very modern approach; highly recommended if the debt involves digital assets, crypto, or tech contracts.
- H&P (Herrera & Partners)
- Phone: +66 2 254 5600
- Address: Two Pacific Place, Sukhumvit Road, Bangkok.
- Why them: High-level corporate focus, ideal for B2B supply chain disputes and factory debts.
Frequently Asked Questions
- Can I go to jail for debt in Thailand?Generally, no. Debt is a civil matter. However, if you paid with a bounced check (Cheque without funds), that can be a criminal offense under Thai law, which gives creditors huge leverage.
- How much do lawyers charge for debt collection?Most firms charge a mix of a "retainer fee" (to cover initial work and court filings) plus a "success fee" (typically 10% to 20% of the recovered amount). Avoid firms that ask for huge upfront fees with no success incentives.
- Can I collect debt without a written contract?It is very difficult. For personal loans over 2,000 THB, the law requires written evidence signed by the borrower to file a lawsuit. For commercial trades, invoices and email confirmations can sometimes suffice, but a contract is best.
- What if the debtor has no money?The court cannot squeeze blood from a stone. If the debtor is truly insolvent and has no assets in their name, suing might just throw good money after bad. A good lawyer will do an asset check investigation before filing suit.
- Does the law apply to foreigners owing foreigners?Yes. If the transaction or the debtor is in Thailand, Thai courts have jurisdiction, even if both parties are foreign nationals.
References
- Legal Execution Department (LED) - Asset Seizure Procedures
- Tilleke & Gibbins - Debt Collection Act Summary
- Siam Legal International - Civil Litigation Guide
- Chaninat & Leeds - Debt Recovery Services
- Thailand Law Forum - Thai Civil and Commercial Code
