HOW TO COLLECT DEBTS IN BRAZIL

Although unpleasant, debts are sometimes inevitable in the business world. In a globalized universe, international debts are far from uncommon. Debt collection is the process of pursuing payments of debts owed by individuals or businesses. Here are a few ways of collecting debts in Brazil being a foreigner. Our law firm may assist you with debt collectiong in Brazil.

1) Direct conversation with the debtor
The less costly and easiest method to collect debts is to talk directly with the one who owes you money.  Negotiations that avoid the judiciary are, by far, the less costly kinds. The first recommended step is, therefore, to try to negotiate amicably directly with the debtor.

2) Cease and desist letter
If no amicable solution is reached by the direct conversation, the next recommended step is to send the debtor a notification. The cease and desist letter is nothing more than a communication to the debtor, laying out the facts that led to the debt and requesting the payment. Usually, one way to coerce the payment is to state that whether payment is not made in x days the only alternative will be to enter the judiciary.

3) Litigate
As stated, amicable arrangements and special debt collection methods are means to avoid domestic courts. However, if the other methods fail, litigation is the only way to recover debts. To learn more about litigationin Brazil, check out our guide on How to litigate in Brazil.

4) Further information
If you need other services in Brazil, we recommend that you also check our guides for:
– How to incorporate a company in Brazil

– How to register and protect a patent in Brazil
– How to transfer technology in Brazil