Commercial debt collection in Dominican Republic can be achieved through a lawsuit for debt collection, which 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.

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ABOUT THE AUTHOR: Dr. Felipe Isa Castillo is a Partner leading the Foreign Investment, Real Estate & Tourism areas at Arthur & Castillo Law Firm and Attorneys in the Dominican Republic. He specializes in foreign investment, real estate and international business (International Legal Studies LLM in Georgetown University Law Center in Washington, D.C. & Masters in International E- Business in Universitat Pompeu Fabra in Barcelona) with more than 20 years of experience in Foreign Investment, Free Trade Zones, International Business and Cross Border Real Estate practice. Dr. Castillo is a Certified Bankruptcy Conciliator and Liquidator and Legal Interpreter.

Email: [email protected]

 Disclaimer: This publication is not intended to provide legal advice or suggest a guaranteed outcome as individual situations will differ and the law may have changed since publication. For specific technical or legal advice on the information provided and related topics, please contact the author.

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