Jersey: Debt Recovery
Last Updated: 26 February 2015

This note outlines some of the steps taken during a debt recovery procedure in Panama and how Hatstone Abogados may assist you.


When it comes to debt recovery strategies, Hatstone Abogados strives to work closely with our clients to understand their objectives and to provide them with debt recovery services through our knowledgeable and experienced legal team.

Our objective is to seek to resolve our client's debt recovery matters rapidly and discretely. Whether a person or a business comes to us with a simple or complex legal recovery matter, Hatstone Abogados will handle the case with the utmost care and the highest quality of legal work.

We represent individual clients, investors, corporations and banks involved in many different types of commercial debt recovery matters in Panama. We will assist at every stage of the debt recovery process offering practical and pragmatic advice, as well as taking decisive action for our clients when necessary.

There are two methods employed by us to recover outstanding debts promptly and efficiently for our clients:


We will contact the debtor on behalf of our client by phone, emails or meetings, taking into account whether the debtor is a person or a corporation. Our view is that the main objective is to negotiate with the debtor on behalf of our client to secure repayment in full or by way of new agreement with structured repayments.

Claiming the debt before the Court

Should the debtor refuse to negotiate or make any agreed payments then it may be necessary to apply to the court for enforcement. Hatstone Abogados will assist you to commence action against the debtor in the civil courts in Panama. On a successful application, the civil court may seize the goods, whether they are real and/or personal property of the debtor (houses, bank accounts, cars, etc.) to satisfy the payment of the debt. Depending on each particular case and the documents provided by the client, Hatstone Abogados, after careful analysis, shall determine the type of lawsuit that will be presented in the civil courts of Panama. There are two types of process that involve debt recovery: (1) ordinary civil proceedings and; (2) executive civil proceedings.

Documentation required for the claim of a debt

In order for Hatstone Abogados to begin a debt recovery procedure, whether we start it as a negotiation or as a claim of the debt before a Panamanian civil court, the following relevant original documents should be provided by the client: deeds; promissory notes; bills of exchange; or a contract or document evidencing the obligation of the debtor.

How to avoid debt recovery?

If a person refuses to repay a debt then it is not possible to avoid one of the debt recovery procedures briefly outlined above, should you wish to recover your money. Before making any loan ensure, that you are in the best possible position to recover the debt as quickly and painlessly as possible. This can be done by undertaking some of the following:

  • ensuring any documentation is well prepared and signed and dated correctly;
  • hold original documentation;
  • seek security or guarantees for a loan; and
  • if there is a procedure for registration then ensure it is followed and completed.

We can also assist you with this process.

Conclusions and considerations

To recover what is owing to the client, Hatstone Abogados will first undertake an in depth analysis, review and investigation of the matter, for the purpose of determining the level of likely success.

In this regard, any review will involve an investigation of the debtor's assets and whether the debtor has any type of movable or immovable properties registered under his name or in the name of an associated company or other entity.


Hatstone has a flexible fee structure for debt recovery matters and is happy to discuss percentage and fixed fee arrangements.

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