What alternatives do I have to the judicial process to claim unpaid debts?

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When a company or professional faces an unpaid debt, the first option that usually comes to mind is to go to court. However, there are alternative ways that can be more agile, cost-effective, and efficient, especially if one seeks to avoid direct confrontation or high legal costs.

What alternatives do I have to the judicial process to claim unpaid debts?

1. Mediation: assisted dialogue with legal support

Mediation is a voluntary process in which an impartial third party, the mediator, helps the parties reach an agreement. It is especially useful when both parties are willing to resolve the conflict without unnecessary tensions.

  • The agreement reached is not mandatory if a consensus is not reached.

  • If signed and notarized, it can have enforceable power, like a court judgment.

  • Negotiations are confidential, and the process can be abandoned at any time.

  • The presence of a lawyer is not mandatory, but it is highly recommended to have legal advice.

2. Arbitration: a binding resolution without going to court

Arbitration allows the parties to delegate the decision to a professional arbitrator, who issues a binding arbitral award, equivalent to a judicial decision.

  • It is only possible if both parties accept arbitration, either in the contract or by subsequent agreement.

  • It can be a legal arbitration (according to the law) or an equitable arbitration (according to the arbitrator's criteria).

  • It is a more agile and flexible process than the judicial one, and also more confidential.

3. Notarial monitorio: effectiveness without court intervention (in some cases)

Notarial monitorio is a tool exclusive for claiming debts from companies or professionals (it cannot be used against consumers).

  • The notary notifies the debtor, who has 20 days to pay or object.

  • If there is no response or payment, a notarial executive record is generated valid for judicial claim.

  • If there is an objection, the procedure must continue in court.

  • It is a faster and more cost-effective way than the traditional judicial process.
     

Before embarking on a judicial claim, it is advisable to consider these alternatives that can save you time, costs, and reputational damage. The choice of the most suitable path depends on the debtor's profile, the type of commercial relationship, and the amount of debt.