How to Recover a Debt Collection in Colombia?

July 30, 2020

In Colombia the legal framework of the debt collection provides several legal tools for nationals and foreigners, to access the public and administrative system of justice, in regards to achieve the payment of debt collection. In this article you will learn about the legal mechanism of debt collection in Colombia, also the legal phases of a portfolio recovery, and other important tips in this process of debt collection.

Since AGT Attorneys was establishment, we have accompanied and counseled different domestic and international companies in the processes of debt collection in Colombia, contributing our knowledge regarding procedures and documents for portfolio recoveries. Contact us by filling out the next Contact Form.

Which Are the Legal Mechanism of Debt Collection in Colombia?

• Conciliation. Established in the Law 640 of 2001, which allows to administrative, judicial, and private authorities to conciliate an agreement between the debt collector and the debtor.
• Executive Action. This process is executed by a civil judge of Colombia, using a judicial sentence to make a debt covenant, or in mayor cases, force the payment to the debtor which is based on a contract. In both mechanism is useful the legal advice of debt collection lawyers.

In any of this two types of legal mechanism, we recomend the advise of debt collection lawyers in Colombia, to help you out in the process. We know all the procedures and the experience to guide you to get the best choise of getting back your debt.

Stages of the Debt Collection Process in Colombia:

In some cases the debt collection of portfolio recovery have a series of stages where the main objective is for the person to pay their past due debt. Generally the stages are:

1. Preventive - Administrative Stage. It's the reminder prior to the expiration date of the debt, which includes the following actions:

• We make a reminder of payment dates by phone call.
• We send text messages of payment date reminders.
• Follow-up releases to the debtor's portfolio.
• Periodic reports of preventive management.

2. Pre-Juridical Stage.

• After the 61st day a legal process of debt collection of portfolio recovery can be started.
• Where you can contact our commercial attorneys for advice at +57 310 570 6331.
• Physical location of the debtor and joint and associated debtors.
• Written and telephone communications for pre-legal collection.
• Physical visits for delivery of pre-juridical collection communications.
• Written and telephone communications to joint debtors.
• Investigation of movable and immovable property for eventual seizures and kidnappings of the main debtor and joint and several debtors.
• Hearings, meetings and subscriptions of conciliation agreements as payment agreement.
• Follow-up report until an eventual judicial collection.

3. Juridical Stage:

• A judicial process is initiated against the debtor to make the outstanding payment of the debt.
• Presentation of executive lawsuit against principal debtors and joint and several debtors.
• Request for precautionary action on money, bank titles, movable and immovable property, among others.
• Attendance at legal audience of the executive process.
• Representation of legal kidnapping proceedings.
• Representation in legal auction proceedings.
• Credit or debt settlement updates.

4. Dual Management. Our lawyers facilitate, through out-of-court negotiations, the normalization of unpaid obligations, while the collection proceeds through the courts, which encourages the external lawyer to exhaust all possibilities to normalize the situation. In addition to the services described above, in AGT Attorneys. We design credit and portfolio structures with the following actions:

• Preparation of credit application.
• Preparation of customer knowledge formats.
• Preparation of promissory notes.
• Preparation of authorization to report to credit bureaus.
• Preparation of guarantees by solidarity debtors.
• Preparation of models of pledge or mortgage contracts.
• Preparation of endorsement of bank securities in guarantee.
• Preparation of letters of credit.
• Design of database management policies in accordance with the financial statute and the Colombian regulation of Habeas Data.
• Design of flow charts of debt evolution over time according to collection stages.

Do You Need a Debt Collection Lawyer in Colombia?

In AGT Attorneys, we have the best qualified team of debt collection lawyers who can help you in your process of portfolio recovery, write us in the next WhatsApp number +57 310 570 6331, or fill out the next Contact Form.

If you found this article helpful then let us know in the comments section below. Likewise, feel free to share it using the share options below. Want us to cover another topic of your interest pertaining to legal affairs? If so, then like us and follow us on social media, and post to any of our social media profiles the topic you'd like us to discuss: Facebook AGT Attorneys and Twitter @AttorneysAGT