Debt Recovery in Thailand Demand Letter Guide
Need help recovering unpaid debts in Thailand? It all starts with issuing a professionally drafted demand letter, a legal tool that saves time, preserves evidence, and often avoids going to court.
The Debt Recovery Process at a Glance
- Legal Demand Letter – A formal notice requiring repayment, often the first legal step.
- Civil Lawsuit – Filing in Thai court if the debtor ignores the demand letter.
- Judgment Enforcement – Asset seizure, wage garnishment, or bank account freezing with a court order.
1. Demand Letter: Your First Step in Recovery
A demand letter is often the most effective, efficient, and budget-friendly approach to recovering debts in Thailand.
Why it works:
- Legal weight: A letter from a lawyer shows you are serious.
- Evidence: It creates a record of your efforts before court action.
- Court expectation: Judges look favorably on creditors who try to resolve disputes amicably.
- Pressure to settle: Many debtors respond to avoid escalation.
At Lex Bangkok, our demand letters include:
- Clear statement of the debt amount and legal basis
- Reference to loan agreement and Thai law
- Payment deadline (usually 7–15 days)
- Warning of legal consequences if ignored
- Sent via registered delivery or legal courier
2. Filing a Civil Lawsuit
If the debtor fails to pay after receiving demand letters, the next step is filing a civil claim in court.
What happens next:
- File claim with contract, demand letters, and supporting evidence
- Court sets hearings, allows defenses, and issues judgment
- Timeline can take several months
Legal basis: The Thai Civil Procedure Code requires sufficient documentation and clear evidence.
3. Judgment Enforcement
If the debtor still refuses to pay after a judgment, options include:
- Seizure of assets (vehicles, property)
- Garnishment of salaries or income
- Freezing bank accounts
Key timeframes:
- Loan claims: 10-year prescription (Civil and Commercial Code, Section 193/30)
- Judgment enforcement: Must start within 10 years of enforceability (Civil Procedure Code, Section 274)
Bonus Consideration: Secured Loans
For loans secured by collateral (e.g., mortgages), Thai law requires a pre-action written notice, often 60 days, before enforcement is possible.
Why Clients Choose Lex Bangkok
| Benefit | How We Deliver It |
|---|---|
| Clarity and Confidence | Demand letters in Thai and English |
| Legal Authority | Formal notices with strong legal weight |
| Strategic Guidance | Step-by-step support from demand to enforcement |
| Higher Success Rate | Court-ready evidence increases enforcement power |
When to Use a Demand Letter
- Unpaid invoices or services
- Breach of contract or missed installments
- Personal loans or rental disputes
- Bounced cheques or fraud-related debt claims
Contact Lex Bangkok
Phone: (+66) 62 161 4646
Email: info@lexbangkok.com