How to Collect a Commercial International Debt

Due to the recent economic downturn, an increasing amount of people and businesses have defaulted on their international debt obligations. As a result, many creditors are seeking ways in which to collect international debts. Collecting a debt internationally, however, must satisfy international laws and agreements regarding debt collection. Not all countries have mutual agreements for the collection of debts in the other country.

Instructions

1

Check the laws and agreements that exist between the United States and the country in which you wish to collect the debt. The United States currently has debt collection agreements between most European countries, Canada, and some Asian countries. A lawyer who specializes in international business law might help.

2

Sell the debt to a collection agency in the country where the debtor is located. This is often a preferred option when dealing with smaller debts. The debt collection agency will buy your debt for a percentage of the total outstanding, and will then continue to seek out the debt settlement with the debtor.

3

Hire a lawyer that specializes in international business law and sue the debtor for repayment of debt. This option is often taken for debts of especially large amounts. The debt will be settled in the court of the country of the debtor, and the collection of any outstanding money will be handled by an accounting agency that has been given the mandate for the management of international debts.