Commercial Debt Collection
In Dominican Republic, the suit for debt collection is the mechanism used by creditors to pursue the collection of moneys derived from a debt by means of the Dominican judicial system.
Suing for debt collection should be most useful whenever the creditor considers that his credit is in danger of becoming unrecoverable.
Under Dominican Republic Law, the above should begin by evidencing the existence of a credit i.e., having the supporting documents which sustain a credit, expressed in amounts of money, and establish a payment due date. This means that a creditor may file a debt collection claim by virtue of an invoice, a promissory note or a Court decision, among other documents, where amounts of money are stipulated and where an effective commitment of payment by a debtor exists.
The competent Court for a debt collection suit may vary depending on the amount of money involved. Claims involving amounts of more than DOP 20,000 shall be decided by the corresponding District Court of First Instance, whereas lesser amounts should be decided by the corresponding Justices of Peace.
At any time, the debtor shall be considered freed from his payment obligation by providing proof of payment or by proving that the obligation is extinguished.
Please consult Arthur & Castillo Lawyers (AC LAW) on issues related to commercial debt collection in Dominican Republic.
Note: This is not legal advice: it is intended to provide information of general interest about current legal issues. Arthur & Castillo, SRL. © 2019. All rights reserved.