Debt Recovery and Enforcement in Thailand

Overview of Debt Enforcement

In Thailand, once a court issues a final judgment requiring payment of debts or fulfillment of specific obligations, the party ordered to comply becomes the judgment debtor (JD). The JD is legally bound to satisfy the court’s decision. If the debtor fails to perform, the judgment creditor (JC) may initiate the court-supervised enforcement process to recover the debt.

Our service include:

Judgment enforcement and execution support
Asset seizure and bank attachment
Debt collection compliance guidance
Creditor and debtor representation
Legal documentation and demand letters
Court-supervised recovery procedures

Legal Execution Procedures

Legal enforcement is regulated under Sections 274 and 275 of the Thai Civil Procedure Code. The law allows the JC to request court assistance for executing the judgment without filing a separate case against a surety. Enforcement measures may include:

Seizure of the debtor’s property
Attachment of bank accounts or claims
Other legally authorized execution actions

Execution can only be applied to the debtor; property owned by third parties is protected. Requests for enforcement are generally valid within ten years of the final judgment. For obligations payable in installments or at a future date, the period begins when performance becomes enforceable. Once approved, the court appoints an executing officer to oversee the process and may authorize temporary measures to protect the creditor’s interests.

Debt Collection Regulations

The Debt Collection Act B.E. 2558 governs creditor and borrower responsibilities, repayment methods, and collection procedures. Key points include:

Loans under THB 2,000 can be proven by witness testimony; amounts above require written evidence.
The maximum interest rate is 15% per year unless permitted otherwise by law.
Compound interest is allowed only for commercial loans with written agreement, applied after one year.
In bankruptcy, repayment through assets or property is evaluated at market value.
When contracts are silent on interest, courts may impose 5% per annum.

Roles and Conduct of Debt Collectors

Debt collectors are defined as:

Licensed debt collection agencies
Attorneys or authorized representatives acting on behalf of creditors

Collectors are restricted to contacting:

The debtor directly
Authorized representatives
Third parties only to locate the debtor, without disclosing debt details

Close family members (spouse, parents, or children) may be informed when necessary.

Collectors must maintain confidentiality and adhere to communication hours:

Weekdays: 8:00 AM – 8:00 PM
Holidays: 8:00 AM – 6:00 PM

Collectors are required to provide legal documentation detailing:

Amount owed
Creditor information
Collector or agency identification

Prohibited practices include:

Threatening or abusive language
Misrepresenting authority (e.g., fake court orders)
Sharing debt information with unrelated third parties
Communicating in a manner that compromises confidentiality

All fees must comply with legal limits.

Summary

Delays in debt recovery often occur due to procedural bottlenecks or delayed applications by creditors. Expert legal support is essential for efficient and lawful debt collection.

BASE Law Firm offers comprehensive assistance in debt enforcement and repossession matters in Thailand. Our team manages each stage of legal execution with precision, ensuring creditor rights are protected and recovery is completed effectively and in compliance with Thai law.